Hobnob News – Governor Peter Mbah of Enugu State has strongly reiterated the state’s demand for its rightful 13% oil derivation entitlement, expressing concern over its continued exclusion despite formal recognition as an oil-producing state by the Federal Government since 2022.
Governor Mbah made this assertion on Tuesday while receiving the Indices and Disbursement Committee of the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) at the Government House, Enugu.
The RMAFC had, in December 2022, officially listed Enugu as an oil-producing state following the recommendations of an Inter-agency Technical Committee. The committee identified active oil production in the Anambra River Basin zones, which includes the basin’s 1, 2, and 3 fields.
“Although we were formally communicated this recognition in December 2022, Enugu State is yet to receive any share from the 13% derivation revenue. This issue remains unresolved, and we appeal for your swift intervention to ensure we begin to benefit from what is constitutionally ours,” Governor Mbah stated.
Despite the delay in oil revenue allocations, Mbah highlighted his administration’s strides in increasing internally generated revenue (IGR). He announced an ambitious projection of over N500 billion for 2025—representing more than a 400% increase—attributed to the strategic deployment of technology to curb revenue leakages and expand the tax base.
He urged the Commission to reflect this remarkable growth in their indices, reinforcing that Enugu is committed to transparency. “We ensure full disbursement of federal allocations to our local governments and even provide extra support for capital projects,” Mbah added.
In response, the head of the RMAFC delegation and Commissioner representing Kwara State, Mr. Ismaila Agaka, applauded the Mbah administration for its prudent use of both federal and internally generated funds.
“Prior to our visit, we assumed some of the achievements reported in the media might be exaggerated. But after our inspections, we are genuinely impressed. There’s evident discipline, fewer illegal structures, and commendable development,” Agaka remarked.
He specifically praised Enugu’s Smart Schools initiative and the establishment of functional healthcare centres across all 260 wards as impactful and people-oriented projects.
Agaka explained that the RMAFC delegation was in the state to evaluate the utilization of federal allocations across Enugu’s state and local governments. He noted that the commission would probe any discrepancies or deductions and update the revenue-sharing indices to ensure fairness and equity.
“Our goal is to promote accuracy, transparency, and justice in revenue distribution while resolving any concerns—such as zero allocation—affecting local governments,” he concluded.
