The governor of Kogi State, Usman Ododo, says the state remains an oil-producing state as crude oil has been found in commercial quantity in Olamaboro Local Government Area of the state.
Ododo, however, lamented that despite the discovery of crude oil in commercial quantity in Kogi, the state does not enjoy the 13 per cent derivation and other benefits given to other oil-producing states in the country.
Governor Ododo disclosed this when he visited the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, at his office in Abuja on Thursday.
He called for the support of the ministry in Kogi’s bid to plug into the northern front line exploration oil drilling bid.
According to Ododo, Kogi is the meeting point between the South and the North of the Ajaokuta/Kaduna/kano (AKK) pipeline which gives it a major advantage for oil and gas investments to thrive.
Responding, Lokpobiri said the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, is looking into the matter as Nigeria needs more crude oil and gas assets to increase its revenue from the current target of 2.5 million barrels per day to about 5 million barrels.
He, therefore, added that the government will certainly partner Kogi State in its current drive.
Oil Producing States in the country receive 13 per cent derivation as a benefits transfer scheme as stipulated in Section 162, Sub-section 2 of the Nigerian Constitution.
The derivation fund is paid to states on a monthly basis to assist oil-producing communities in combating environmental pollution and degradation, providing basic amenities such as healthcare, potable water, among others.
