Enugu, May 21, 2025 — Governor Peter Mbah of Enugu State has urged the Federal Government to immediately include Enugu in the disbursement of the constitutionally guaranteed 13% oil derivation revenue, citing the state’s official recognition as an oil-producing region.
Mbah made the appeal on Wednesday during a meeting with the Indices and Disbursement Committee of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) at the Enugu State Government House.
According to Mbah, the Revenue Commission formally communicated Enugu’s status as an oil-producing state in December 2022, based on the recommendation of the Inter-agency Technical Committee. The committee confirmed that oil fields within Anambra River Basins 1, 2, and 3 qualified Enugu to benefit from derivation revenue.
“We still have this pending issue of Enugu State being recognised as an oil-producing state,” Mbah said. “Despite the recognition by your office, we have not received any share from the 13% derivation tied to the Anambra River Basin oil fields. We urge you to put the machinery in motion to rectify this.”
The governor emphasized that his administration is not solely reliant on federal allocations. He disclosed that Enugu has grown its Internally Generated Revenue (IGR) by over 400%, targeting ₦500 billion in the 2025 budget and is on track to exceed that.
He stressed that Enugu’s revenue growth stems from broadening the state’s tax base and deploying technology to plug leakages. “We hope your indices reflect this transformation,” he added.
On fiscal governance, Mbah stated that his administration ensures 100% disbursement of funds to local governments and continues to support them in executing major development projects. “We do this in line with our principles of transparency and accountability,” he said.
In response, Mr. Ismaila Agaka, RMAFC Commissioner representing Kwara State and leader of the visiting team, praised Mbah’s administration for prudent management of federal allocations and IGR.
“We’ve seen the transformation firsthand. This isn’t media hype. Enugu is indeed undergoing disciplined development,” Agaka noted. He also lauded the state’s crackdown on illegal structures, describing the urban renewal drive as a model for others.
Agaka said the RMAFC team’s mission was to monitor how funds from the Federation Account are distributed and used in Enugu State and its local councils. “We’re here to assess deductions, disbursements, and detect any irregularities or errors in the application of revenue-sharing indices,” he explained.
Enugu was officially listed among Nigeria’s oil-producing states in late 2022 but is yet to receive any disbursement under the derivation principle, as stipulated in Section 162(2) of the 1999 Constitution.
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Reporting by Emman Tochi in Lagos, Nigeria.
