Enugu Yet to Receive 13% Oil Derivation Revenue Despite Federal Recognition, Governor Mbah Laments

Governor Peter Mbah of Enugu State has expressed deep concern over the state’s continued exclusion from the 13% oil derivation fund, despite its official recognition as an oil-producing state by the Federal Government in December 2022. This recognition was based on recommendations by the Inter-agency Technical Committee, which identified oil fields in the Anambra River Basin as qualifying Enugu for the derivation revenue.

Speaking during a courtesy visit by the Indices and Disbursement Committee of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) at the Government House in Enugu, Governor Mbah highlighted the state’s non-receipt of the constitutionally mandated revenue share. He stated, “We still have this pending issue of Enugu State being recognized as an oil-producing state, which your office actually communicated to us sometime in December 2022 based on the report of the Inter-agency Technical Committee. The Committee came up with a recommendation that Enugu should be benefiting from the 13 per cent derivation of the Anambra River Basin 1, Anambra River Basin 2, and Anambra River 3. But we have still not benefited from those fields.”

Governor Mbah appealed to the RMAFC to expedite the necessary administrative and technical processes to facilitate Enugu’s inclusion in the oil revenue sharing framework. He emphasized the state’s commitment to transparency and accountability, noting that local governments receive 100% of their statutory allocations, with additional support for capital projects.

In response, the leader of the RMAFC delegation, Commissioner Ismaila Mohammed Agaka, commended Governor Mbah for his administration’s prudent management of federal allocations and internally generated revenue (IGR). He acknowledged the visible developmental projects across the state and assured that the commission would address the concerns raised regarding the 13% derivation fund.

The 13% derivation fund is a constitutional provision aimed at ensuring that oil-producing states receive a fair share of revenue generated from their natural resources. Enugu’s continued exclusion from this fund, despite its recognized status, raises questions about the implementation of revenue-sharing policies and the equitable treatment of states within the federation.