First Payments as oil producing State, have been made to Kogi
Yahaya Bello, The Kogi State Governor, has confirmed the receipt of first payment of the 13 percent derivation fund as an oil producing state.
On Wednesday, Bello disclosed this in a statement at a weekly executive council meeting held at the Lugard House in Lokoja.
Kogi had been classified as an oil producing state by the Revenue Mobilisation Allocation and Fiscal Commission which qualified it to receive 13 percent derivation fund from the federation account just like it’s counterpart oil producing states.
The commission however said that the state would only start to enjoy the 13 percent derivation when the Ibaji oil well starts production and contribute to to the federation account.
It is unclear however, if the oil well has commenced production.
This makes Kogi the first northern state to enjoy such privilege in the country.
Speaking further on the development, the state information commissioner said that it was true and expressed delight at the development.
“This means that the governor will have more funds to execute his many people-oriented projects he has started,” the commissioner noted.
When asked whether the burnt Kogi State House of Assembly would now be considered as a top priority project, the commissioner said that was left to the exco to decide when the time comes.
He said that there are many other on going projects in the education sector, health and many other infrastructure projects adding that there would be more funds available to execute them now.
(Punch)
