Include us in list of Oil Producing States, Obiano demands

By Post Nigeria May 18, 2015 16:29

Include us in list of Oil Producing States, Obiano demands

The Anambra State Government has called on the Federal Government to include its State in the group of oil and gas producing states to benefit from the 13% derivation funds that accrue to all oil producing States in the country.

Governor Willie Obiano who made this known to The Nation, said he had presented a proposal for inclusion of the State to President Goodluck Jonathan but the President said until the State begins exportation of oil, it would not be recognized as one.

The Governor noted that the oil field located in Anambra basin produces about 2,500 barrels per day, bpd.

He noted that the production from the oil field had attained about 65,000 barrels and when it gets to about 120,000 barrels, the State will make its first oil export.

Based on provisions of the Nigerian Constitution, States are entitled to 13% of revenues derived from minerals exploited within their borders.

The Niger Delta oil producing States presently enjoying the 13% derivation funds are Rivers, Akwa Ibom, Delta, Bayelsa, Edo, Imo, Abia, and Ondo.

The Governor added that he was liaising with some investors who will build a refinery and airport in the State through the Build Operate and Transfer, BOT, arrangement.

Obiano said that the investors will build the refinery on agreed terms, operate it for an agreed period and transfer it to the owners. According to him, the refinery will start up with 25,000 bpd capacity and be later ramped up to 50,000 bpd adding that the State owns a stake of about 5%. He said the State is making efforts to bring investors for the sake of industrialization and job creation.

Concerning the airport, he said he would begin as a cargo airport, where materials needed in the State would be brought and goods, most especially byproducts from the refineries can be exported before expanding it into a passenger airport.

Speaking on the controversy of the ownership of the State’s oil producing asset he said that the claims of ownership by Kogi people was politically motivated, pointing out that the issue has since been resolved. He clarified that the oil field was 22 miles into the State; which implies that the ownership contest shouldn’t arise.

He said he inherited an IGR of N500 million but it has risen to N1.1 billion and he intends to raise it to N3.3 billion by this year’s end.

“I cannot imagine myself as a renowned banker operating an IGR of N500 million in a State such as Anambra.”

Obiano claimed that since he came into power a year ago, he had been able to attract investments of between $2.2 billion and $2.5 billion in some sectors of the State’s economy.

One of the areas he highlighted was the expansion of the $250 million farm by Coscharis Farm Limited, adding that the company is also building a $150 million tomato-processing plant in the state, which is the first of its kind in Africa.

He disclosed that his aim was to make Anambra an investor destination of which he has started with the re-structuring of the entire security system in the State. He emphasized that the resolve will wipe out kidnappers and all types of crimes and vices in the State.

Obiano concluded by stating his plan to revamp the education sector and other vital areas of the economy that improve standard of living accessible and affordable to the people.