Kogi State says it has received first payment of the 13 percent derivation fund as an oil producing state.
The state governor, Yahaya Bello, disclosed the receipt on Wednesday at a weekly executive council meeting held at the Lugard House in Lokoja.
The Revenue Mobilisation Allocation and Fiscal Commission had classified Kogi State as an oil producing state, which qualified it to receive 13 percent derivation fund from the federation account just like it’s counterpart oil producing states.
The commission, however, noted 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 remains unclear whether 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.