Governor Peter Mbah of Enugu State has voiced his disappointment over the state’s exclusion from the 13 per cent oil derivation fund, despite being officially acknowledged as an oil-producing state since 2022.
The governor made the remarks on Tuesday while receiving a delegation from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Indices and Disbursement Committee at the Government House in Enugu.
According to Mbah, the Federal Government, through the RMAFC, had formally recognised Enugu’s oil-producing status in December 2022, based on the findings of an inter-agency technical team which confirmed oil activities in the Anambra River Basin.
However, he said the state has yet to benefit from the associated oil revenue.
“Your office informed us back in December 2022 that Enugu qualified for oil derivation based on oil production in the Anambra River Basin zones. But up until now, we haven’t received a single kobo,” the governor stated.
He appealed to the commission to quicken all necessary processes to ensure the state begins receiving its constitutional entitlement under the derivation formula.
Despite this setback, Mbah noted that his government had significantly raised the state’s internally generated revenue, with projections exceeding N500 billion for 2025—a leap of over 400 per cent.
He attributed this achievement to the use of digital systems that helped plug financial loopholes and expand the tax base.
Mbah further assured that Enugu’s local government areas receive their full allocations without interference, and the state often steps in to support development efforts, especially for infrastructure-heavy projects.
In his remarks, Mr. Ismaila Agaka, RMAFC commissioner representing Kwara State and leader of the visiting team, commended the state government for the visible transformation across various sectors.
He said the commission had expected to see less on ground but was impressed by the results of Mbah’s administration.
“We assumed much of what we heard was media exaggeration. But after seeing things for ourselves, it’s clear that real development is taking place. The state is becoming more structured, and orderliness is returning,” Agaka observed.
He applauded initiatives like the Smart Schools and the expansion of primary healthcare facilities across all 260 wards, describing them as well-planned and impactful.
Agaka explained that the team was in Enugu to evaluate the use of federal allocations and internally generated revenue. He added that the commission would also probe any anomalies in allocation, especially cases of zero disbursements to local councils, and work toward adjusting revenue indices to ensure equity and fairness across the federation.