Kogi State has officially become the first northern oil producing state in Nigeria. The State Governor of Kogi State, Mr. Yahaya Bello, made the announcement when the federal government credited the state with its first 14 percent derivation confirming its status.
Kogi State joins the league of 10 other oil-producing states in the country, including Akwa Ibom, Rivers, Delta, Bayelsa, Ondo, Edo, Imo, Abia, Lagos and Anambra.
Why it matters
In recent months, Nigeria’s oil producing capacity has dropped below expectations. From producing about 2.5 million barrels at the end of 2014, Africa’s largest economy has settled for about 1.9 million barrels for the past 7 years. The increase in oil wells around the country can help Nigeria grow its oil production capacity. While it works to address other issues in the oil sector, including theft.
The big picture
The oil-producing states in the country are entitled to a percentage allocation from Nigeria’s derivation fund every month. The derivation fund varies per month and per state and on the allocation by the federal government.
The National Bureau of Statistics (NBS) recently disclosed that for the first half of the year, the oil-producing states received about N377.93 billion as derivation funds.
What you should know
In terms of allocation, Delta state received N114.75 billion between January and June 2022. Summing up to 30.4% of the total amount shared by the eight states.
Akwa Ibom state has received N80.02 billion, representing 21.2% of the total derivation funds.
Bayelsa received a sum of N76.74 billion, 20.3% of the total shared amount.
Rivers state received N70.44 billion, Edo state N14.51 billion, Ondo state N9.47 billion, Imo state N8.16 billion and Abia state N3.84 billion.