President Muhammadu Buhari has approved Anambra State as an oil producing state, thereby qualifying it for sharing in the 13 percent derivation revenue for minerals-producing states in the country.
The approval was conveyed via a letter signed by the president’s Chief of Staff, Professor Ibrahim Gambari, to Governor Willie Obiano of Anambra State in response to an August 24, 2021 letter in which Governor requested the President’s approval to declare the state as an oil and gas producing state.
With the approval, Anambra State is now entitled to 13% of the revenue from crude oil sale from 11 oil wells in its territory. The wells are Nzam-1, Alo-1, Ameshi-1, 2, and 3, and Enyie-1, 2 , 3 and 4.
In the letter, President Buhari also complied with an earlier decision of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) that the 13% proceeds from oil and gas resources from Anambra 1, 2 and 3 oil wells be shared equally between Anambra State and Kogi State until the boundary dispute between the two states is resolved by the Boundary Commission.
The President also approved the attribution of Okpo-1 oil well to Edo State and the Iji-1 oil well to Delta State and Oda River-1 oil well to Edo State.
The approval of Anambra as an oil producing state has been conveyed to the Minister of State in the Ministry of Petroleum Resources, Timepre Sylva; the chairman of the Revenue Mobilization Allocation and Fiscal Commission, Engineer Elias Mbam; and the Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed, for actions.
It has also been conveyed to Governor Ifeanyi Okowa of Delta State, Edo State Governor, Godwin Obaseki; and Kogi Governor, Yahaya Bello.
Reacting to the President’s approval of his state as oil-producing state, Governor Obiano enthused: “The president’s decision is wise and swiftly.
“It has been a tough, relentless and strategic battle which our administration waged on behalf of the people of Anambra State in the last two years when we received intelligence reports that Sterling Oil Exploration and Energy Producing Company of India has not only illegally and surreptitiously been producing oil since 2014 in the twin towns of Ogwuaniocha and Ogwuikpele in Ogbaru Local Government Area without conducting the statutory environmental and social impact assessment but also attributing the petroleum resources produced from these places to Delta State”.
“Despite all we did to resolve the matter amicably with the Indian firm, it refused to cooperate which necessitated us to drag them to the Nigerian National Petroleum Corporation, the Department of Petroleum Resources which regulates the petroleum industry, the office of the Minister of Justice and Attorney General of the Federation and the Federal Ministry of the Environment”, the governor added.
