The Anambra State Government says it has successfully recovered a number of oil wells that were previously attributed to neighbouring Delta State following a verification exercise by federal authorities.
This was disclosed by Charles Ofoegbu, Managing Director of the Anambra State Solid Minerals Development Company and Chairman of Anambra State Petroleum Energy Resources Limited, while briefing journalists in Awka on Thursday.
He explained that the development followed a verification carried out by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on oil wells located within the Anambra River Basin.
Ofoegbu added that the state’s revenue allocation from the Federal Government is expected to increase once the commission’s report on the oil wells is formally approved.
What they are saying
Ofoegbu said some of the oil wells associated with Anambra had long been part of boundary disputes involving neighbouring states, particularly Delta.
- “Some oil wells belonging to the state had previously been subject to boundary disputes with neighbouring states, particularly Delta,” he said.
He also noted that Anambra only recently joined the league of oil-producing states in Nigeria following confirmation of its production status.
- “Anambra was fully admitted into the list of Nigeria’s oil-producing states in 2025 with an initial production output of about 3,000 barrels per day,” he said.
More insights
Beyond the oil well recovery, Ofoegbu highlighted several initiatives the state government is pursuing to expand its energy and mineral resource base.
The state government is working with foreign investors to establish a modular refinery in Osamala, Ogbaru Local Government Area.
According to him, the refinery is expected to produce petroleum products for the local market.
- “This modular refinery will produce petroleum and diesel to serve Anambra and neighbouring states, thereby generating huge revenue for the state,” he said.
The state is also seeking to recover additional oil wells currently claimed by Imo, Rivers and Enugu states due to boundary disputes.
Ofoegbu noted that successful recovery of these wells could increase the state’s 13 per cent oil derivation from the Federal Government.
In the mining sector, the state plans to open a kaolin mining site in Ukpor to boost revenue generation.
The government is also working to establish a bentonite processing plant at Achalagu, Nteje, using raw materials sourced from Umuchu and Ufuma.
What you should know
Nigeria’s Niger Delta region, which is the country’s primary oil-producing area, consists of nine states: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, Rivers.
- Under Nigeria’s revenue-sharing framework, states that produce crude oil receive 13 percent oil derivation from the Federal Government based on the value of oil extracted within their territories.
- Although Anambra has only recently been recognised as an oil-producing state and is still awaiting full benefits from the derivation formula, the state already ranks among the top recipients of federal allocations.
- Data from the Federation Account Allocation Committee (FAAC) shows that Anambra received N199.88 billion in federal allocation in 2025, making it the eighth highest recipient among Nigeria’s 36 states.
Out of the top 10 states that received the highest FAAC allocations in 2025, five are oil-producing states, reflecting the significant fiscal advantage associated with petroleum production in the country.
