Enugu Yet to Receive Oil Revenue Allocation, Governor Tells RMAFC

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Enugu State Governor, Peter Mbah, has decried the continued exclusion of the state from the 13 per cent oil revenue derivation fund, despite its official recognition as an oil-producing state.

Mbah made the appeal on Wednesday during a courtesy visit by members of the Indices and Disbursement Committee of the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) to the Government House in Enugu.

He called on the Federal Government to commence disbursement in line with the Derivation Principle enshrined in the amended 1999 Constitution, noting that Enugu’s entitlement was confirmed in a 2022 RMAFC communication.

“We still have this pending issue of Enugu State being recognised as an oil-producing state, which your Office communicated to us in December 2022, based on the Inter-agency Technical Committee’s report,” the governor said.

The report had recommended that Enugu be included in the 13 per cent derivation from the Anambra River Basin oil fields – specifically Anambra River Basin 1, 2 and 3. However, the state is yet to receive any benefit.

Governor Mbah urged RMAFC to expedite necessary steps to ensure the state begins to enjoy the statutory revenue allocations.

Despite the setback, Mbah highlighted strides in internally generated revenue (IGR), stating that his administration had grown IGR by over 400 per cent through diversification and improved fiscal technology. He projected IGR earnings exceeding N500 billion in the 2025 budget.

The governor also emphasised his government’s commitment to transparency, noting that local governments receive their full statutory allocations, along with state support for capital projects.

In response, RMAFC committee leader and Kwara State Commissioner, Ismaila Agaka, commended Mbah’s administration for prudent use of federal allocations and internally generated funds.

He acknowledged noticeable infrastructural transformation during the team’s visit and praised efforts to restore order and eliminate illegal structures in Enugu.

Agaka said the team’s mission was to examine how federal funds are disbursed to the state and local councils, with a focus on identifying irregularities and verifying the application of approved indices.

The visit, he said, aims to ensure transparency and fair distribution of federal revenue across the country.

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