Anambra not an oil-producing state? Well, oil revenue should revert to the state

Anambra not an oil producing state? Well, oil revenue should revert to the state

Now that the 'Nigerian' Senate has rejected Anambra State as an oil producing state in 'Nigeria', what happens to the oil revenue from the oilfields of Aguleri? Would it be safe to assume that whatever comes from Aguleri and other oil wells in Anambra should go directly to the state's coffers?


Members of the Nigerian Senate on Tuesday wielded the magic wand akin to 'Nigeria' when they unanimously rejected a bill seeking to amend the Niger Delta Development Commission Act Cap N86 laws of 'Nigeria' by proposing the recognition of Anambra State as an oil producing state. The bill was to allow the state benefit from provisions made for oil producing states in order to cushion the effects of oil and gas exploitation. The sponsor of the bill, Senator Andy Uba, has hinged his action on the declaration by President Goodluck Jonathan that Anambra had joined the League of oil producing states in the country, while inaugurating the Orient Petroleum’s Anambra River Production facility in Aguleri-Olu, on August 31, 2012.

Uba said that with Jonathan’s pronouncement, Anambra had since “joined the oil bearing states of Delta, Bayelsa, Rivers, Cross River, Akwa Ibom, Imo, Edo and Ondo states, as home to the nation’s oil installations and a rich wet land.”

 “These communities account for 93 per cent of the country’s export earnings and provide the economic lifeline that sustains the Nigerian state and as a result of which this amendment is being sought for Anambra to be part and parcel of the NDDC,” Uba said.

Senator Uba informed his colleagues that the integration of Anambra State as part of the NDDC states was necessary to avoid the violent conflicts that accompanied all oil exploration activities which include environmental degradation. “Evidently, there is no gain saying the fact that the amendments will assist in no small measure in creating an enabling environment for the operation of oil exploration activities in the oil bearing communities of Anambra State.

“The inclusion of the state as a member state in the NDDC will douse the violent agitation that would have aroused from these communities for government projects.”

Uba added that the objective of the bill was also to ensure the socio-economic development of the host communities where oil installations are located and the general development of the entire Anambra state.

Surprisingly, Nigerian senators disagreed with Uba's submission.  The senators stated that a mere pronouncement from Jonathan, which was not based on any empirical fact, was not enough to make Anambra, an oil producing state.

Indeed! What empirical fact are they looking for? That Aguleri is not in Anambra State, or  that Orient petroleum is not exploiting oil from the oilfields of Aguleri?

Hear them!
Senator Attai Ali said he opposed the bill because the issue of delineation between Kogi, Anambra and Enugu states, which shared common boundaries with the oil installation, was still ongoing.

He urged his colleagues to reject the bill because the three states were still laying claims to the ownership of the oil facility.
Interesting! Is Aguleri in context?

Well, if they don't recognise Anambra as an oil producing state, the state governor and youths of Anambra should make sure none of the proceeds from the oilfields of Aguleri gets to the Nigerian Government. They can start by barricading the oilfields and stopping all operations of the Orient Oil company.