Kogi State Oil Production: Usman Ododo’s 13% Derivation Push

Usman Ododo, the governor of Kogi State, claims the state would continue to produce oil because crude oil has been discovered in commercial quantities in the state’s Olamaboro local government area.

He complained, however, that despite the finding of crude oil in commercial quantities in Kogi, the state did not receive the 13% derivation and other benefits provided to other oil-producing states in the country.

Governor Ododo made the statement while visiting the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, in his office in Abuja on Thursday.

He called on the government to assist Kogi’s bid to participate in the northern front line exploratory oil drilling proposal.

According to Ododo, Kogi is the meeting point between the south and north ends of the Ajaokuta/Kaduna/Kano (AKK) pipeline, giving it a significant advantage for oil and gas development.

Lokpobiri said that the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, is investigating the situation because Nigeria requires more crude oil and gas assets to boost revenue from the present target of 2.5 million barrels per day to approximately 5 million barrels.

He went on to say that the government will undoubtedly support Kogi State in its current campaign.

According to Section 162, Sub-section 2 of the Nigerian Constitution, oil-producing states receive 13% derivation as part of a benefits transfer program.

The derivation fund is distributed to states on a monthly basis to help oil-producing towns confront environmental pollution and deterioration, providing essential services such as healthcare and potable water, among others.