Governor Peter Mbah of Enugu State has raised concerns over the state’s continued exclusion from the 13 per cent oil derivation fund, despite being formally recognised by the Federal Government as an oil-producing state since 2022.
Governor Mbah made this known on Tuesday when he received members of the Revenue Mobilisation, Allocation and Fiscal Commission’s (RMAFC) Indices and Disbursement Committee during a courtesy visit at the Government House in Enugu.
Enugu was designated an oil-producing state in December 2022, following a report by an Inter-agency Technical Committee, which confirmed oil exploration activities in the Anambra River Basin.
Based on this, the RMAFC approved the state’s inclusion for oil revenue sharing.
However, Mbah lamented that the state has yet to receive any funds from the derivation, despite the approval.
“We were officially informed of our status as an oil-producing state in December 2022, yet no derivation funds have been disbursed to us,” he said.
“The Anambra River Basin 1, 2, and 3 fields fall within Enugu, and we are still waiting for our rightful share.”
The governor urged the commission to speed up the necessary administrative processes to ensure Enugu starts benefiting from the fund, as outlined in the constitution.
Despite this revenue challenge, Mbah highlighted the strides made by his administration in growing internally generated revenue (IGR), projecting over N500 billion for 2025—a significant increase of over 400 per cent.
He attributed this progress to the strategic use of technology to curb financial leakages and expand the revenue base.
He also stressed that all allocations to local government areas in the state are disbursed without deductions, with the state often stepping in to support capital projects to promote development.
Earlier, the leader of the visiting RMAFC team, Mr. Ismaila Agaka, who represents Kwara State, commended the Mbah administration for its effective management of public funds and visible development strides.
“Some of the progress we had heard about seemed exaggerated until we saw it firsthand. What we’ve witnessed reflects genuine transformation—unauthorised structures are being cleared, and the environment is becoming more orderly,” Agaka noted.
He particularly praised initiatives such as the Smart Schools programme and the establishment of functional healthcare facilities across all 260 wards in the state, describing them as well-targeted and beneficial to the people.
Agaka explained that the commission’s visit was aimed at reviewing how Enugu manages and utilises both federal allocations and internally generated revenue.
He added that the team would examine any irregularities in revenue distribution, including concerns about zero allocations to some local councils, and make necessary adjustments to ensure equitable disbursement.
