“The making of the twin brides of Anambra and Kogi states was a struggle that took years and grit to prosecute. To say that lives were even sacrificed is to say the least”
The emergence of Anambra and Kogi states as Nigeria’s twin Oil-producing brides, following a prolonged battle for recognition, has elicited excitement across the two states, reports TEDDY NWANUNOBI
After many years of fighting, fueled by oil discovery, the people of Anambra and Kogi states are in a state of uncontrolled excitement now, and may have well forgotten that they, once, took up arms against each other, as they fought over oil wells. For instance, around April in 2013, news had it that the people of Ashonwo/Odeke community in Ibaji Local Government Area of Kogi State took up arms against their Aguleri-Otu neighbours in Anambra-East Local Government Area of Anambra State, accusing the Aguleri-Otu people of encroaching on their land, and, therefore, wanted them ejected. The Aguleri-Otu people had claimed that about seven persons were killed during the armed attack, three others kidnapped, and 252 houses burnt by the Ahonwo/Odeke people. But the Anambra State Governor, Mr. Peter Obi, however, dismissed the casualty figure bandied by the community. Though, he confirmed that about three persons were missing, and seven houses burnt.
After all is said and done, it may well be a ‘good fight’.
The good news was received by Governor Willie Obiano of Anambra State on Tuesday, August 31, 2021. It came via a letter from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). The letter pronounced Anambra a petroleum-bearing state, with all the benefits, like entitlement to the 13 per cent derivation principle in the sharing of national revenue.
Obiano was said to have read the letter twice. Convinced that it is real, he passed it to three of his aides around him, and recited a scriptural passage which reads:
“I have fought the good fight, I have finished the race, I have kept the faith. Henceforth, there is laid up for me the crown of righteousness, which the Lord, the righteous judge, will award to me on that day, and not only to me, but also to all who loved his (appearance).’ (2 Timothy 4: 5-8).
“This fight has not been a one-man show, but the collective effort of Anambra people, especially those in my administration who have defied all the odds to fight for their beloved state. For instance, the Chairman of the Anambra State Oil and Gas Committee, Engineer Frank Edozie, and Chairman of our Technical Committee, Professor Chares Ofoegbu, as well as Professor Solo Chukwubelu, who is the Secretary to the State Government, and such persons as Arinze Awogu, Chairman of the Ogbaru Local Government Transition Committee and Mrs. Patricia Igwebuike, the Special Adviser on Legal Matters and Petroleum Resources, have not for once rested on their laurels,” Obiano added.
The making of the twin brides of Anambra and Kogi states was a struggle that took years and grit to prosecute. To say that lives were even sacrificed is to say the least.
What oil revenue means to Anambra
Anambra State is eagerly looking to boost its revenues from the potential windfalls from its new status as petroleum-bearing state, after President Muhammadu Buhari officially signed off on an earlier Federation Account Allocation Committee (FAAC)’s confirmation of the same to Governor Willie Obiano.
President Buhari’s approval was conveyed in a letter to Governor Obiano signed by Buhari’s Chief of Staff, Prof. Ibrahim Gambari.
The letter was in response to an earlier one by Obiano, written on August 24, in which the Anambra government requested Buhari to officially declare the state an oil and gas-bearing sub-national.
Before the presidential approval, Anambra was a state with a 2016 gross domestic product (GDP) of more than $8.55 billion, and 2020 internally generated revenue (IGR) of N28 billion.
The state is eager to receive revenue from oil resources to boost its overall revenue haul.
Obiano, in reaction to Buhari’s approval, said that the decision was wise and swiftly.
He said the quest to get the state included in the oil-producing states club had been a tough, relentless and strategic battle which his administration waged on behalf of the people of the state, especially since the last two years when the government received reports that Sterling Oil Exploration and Energy Producing Company (SEEPCO) of India was producing oil since 2014 in Ogwuaniocha and Ogwuikpele in Ogbaru Local Government Area of the state without conducting an environmental and social impact assessment, with the oil wells attributed to Delta State.
Anambra’s rather tough journey to becoming an oil-producing state began in 2013 when Orient Petroleum Company, a private firm supported by the state government, started to produce oil in Aguleri, Anambra East Local Government Area.
Oil-producing states not part of 13% Derivation Fund
The recognition of Anambra and Kogi states as oil-producing states was sequel to a letter from RMAFC to a request of Obiano for due share of revenue accruing to the nation from the oil and gas production activities in Anambra State.
The RMAFC’s approval, which was contained in a letter signed by the Secretary to the RMAFC, Mr. Mohammed Shehu, and dated August 24, 2021, stated that Anambra and Kogi states will be eligible for the 13 per cent derivation fund immediately the proceeds from their oil wells begin to contribute to the Federation Account.
Valuechain reports that the oil wells in Anambra and Kogi states are not producing at the moment.
Addressed to Obiano, the letter, with reference RMC/O&G/48/VOL/I/55, stated that the decision to designate the state an oil-producing area was taken at the RMAFC’s 139th plenary session held on July 27, 2021.
In the approval letter, the Commission approved the attribution of 11 oil wells wholly to Anambra State.
The Commission also approved attribution of Anambra River One, Two, and Three oil wells, to be shared on 50-50 per cent basis between Anambra and Kogi states, pending the final delineation of boundaries of the two states.
The 11 oil wells wholly attributed to Anambra State are: Nzam-One oil well, Alo-One oil well, and Ogbu-One oil well.
Others are: Ameshi One, Two, Three and Four oil wells, as well as Enyie One, Two, Three, and Four oil wells.
“I wish to refer to your letter dated 24th March, 2021 on the above subject, and to inform you that the Commission, at its 139th plenary session, held on 27th July 2021, approved the attribution of the following oil wells to Anambra State: Nzam-1 oil well, Alo-1 Oil well, Ogbu-1 oil well, Ameshi 1, 2, 3 and 4 oil wells, Enyie 1, 2, 3 and 4 oil wells,” the letter reads.
“Accordingly, Anambra State will start to benefit from the 13 per cent Derivation Fund, as soon as proceeds from the operation in the above named oil wells starts contributing revenue into the Federation Account.
“Furthermore, the Commission also approved the attribution of Anambra River One, Two and Three oil wells to be shared on (a) 50 per cent basis between Anambra and Kogi (states), pending the final delineation of boundaries of both states.
“The 11 oil wells wholly attributed to Anambra State are: Nzam-One, Alo-One, Ogbu-One, Ameshi One, Two, Three and Four and Enyie One, Two, Three and Four.
“The RMAFC approved the decision at its 139th plenary session held on July 27, 2021.
“The 13 per cent derivation would take effect when the revenue from the operations of the oil wells start contributing to the federation account,” the letter read.
Ending past oil mistake
Sequel to the proclamation of Kogi State as an oil-producing state, the Governor Yahaya Bello, on Tuesday, September 7, paid a ‘thank you’ visit to Buhari.
Addressing the State House correspondents, soon after he met behind closed doors with Buhari, the Governor said that it was a thing of pride to note that Kogi is the first state in Northern Nigeria to assume that status.
“I came to see our father, Mr. President, to thank him, on behalf of the good people of Kogi State, that today, Kogi is the first Nigerian Northern state to be referred to as an oil-producing state. We came to appreciate Mr. President, for that magnanimity, and also to congratulate the people of Kogi State, and Nigerians, generally.
“The fact that we are oil-producing (state) today, I want to assure all the citizens of Kogi State and Nigerians that the mistake that we made in the past, where Nigeria depended on oil alone, as a source of revenue, today, will not be repeated.
“Whatever is going to be accruing to Kogi State will be used to support all other sectors, the agric sector, manufacturing, and several other sectors of our economy to ensure that it is going to serve as a catalyst. It’s not going to be just the only means upon which we shall depend, no. We will not make that mistake,” he said.
Bello also noted that, with the recognition of Kogi and Anambra states, the age-long oil wells dispute that resulted in unwarranted killings and destruction of property have ended.
“President Buhari’s decision has brought peaceful resolution of the dispute. The disputes between two communities of Odeke in Ibaji Local Government Area of Kogi and Aguleri in Anambra State has come to an end. The Ibaji oil crisis has been (going) on for a while and has led to large scale destruction of property with the loss of many lives. The Odeke and Aguleri communities of Kogi and Anambra laid exclusive claim to the ownership of the oil in the disputed area which has been finally resolved in favour of both states.
“By history, the exploration of crude oil in Ibaji Local Government Area, which comes under the Anambra Basin in geological terms, started in 1952. In the villages of Odeke, Echeno, Ihile, Anocha/Uchuchu, Omabo, Ikah, Iregwu and Ujeh all in Ibaji community of the present-day Ibaji Local Government Area of Kogi.
“Between 1952 and 1986 three companies namely; Shell BP (now SPDC), ELF (now Total Fina Elf) and AGIP Energy have drilled 25 exploration wells, (two) appraisal wells and eight-core drill wells in the entire Basin out of which majority of the wells fall into Kogi,” he said in a statement by his Chief Press Secretary, Mr. Onogwu Muhammed, on Wednesday, September 8.
Married out from a glorious fight, Anambra and Kogi states have marched into the league of oil-producing states. To both states, the wars were worth everything.
Valuechain reports that eight oil-producing states, including: Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers received N6.589 trillion from the Federation Account, under the 13 per cent derivation principle, between 2009 and 2019.
Anambra and Kogi states have joined nine others, including: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Lagos, Ondo and Rivers states. Out of these listed states, Akwa Ibom, Bayelsa, Delta and Rivers account for 80 per cent of the crude oil that is produced from Nigeria.