State officials say the recovery of disputed wells could boost Anambra’s oil derivation earnings and strengthen its status as one of Nigeria’s newest oil-producing states…….
The Anambra State government says it has successfully reclaimed several oil wells that were previously attributed to neighbouring Delta State, following a verification exercise conducted by federal authorities.
The development was disclosed on Thursday by Charles Ofoegbu, Managing Director of the Anambra State Solid Minerals Development Company and Chairman of Anambra State Petroleum Energy Resources Limited, during a press briefing in Awka, the state capital.
According to Ofoegbu, the recovery followed a detailed verification carried out by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on oil wells located within the Anambra River Basin.
Boundary Disputes Behind the Oil Well Claims
Ofoegbu explained that some of the wells linked to Anambra had long been caught up in 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.
With the verification exercise now completed, the state government expects its share of revenue from the Federation Account Allocation Committee (FAAC) to increase once the commission’s findings are formally approved.
Anambra’s New Status as an Oil-Producing State
The official also highlighted that Anambra only recently joined the ranks of Nigeria’s oil-producing states.
According to him, the state was officially recognised as an oil-producing state in 2025, with an initial production capacity of around 3,000 barrels of crude oil per day.
This recognition qualifies the state to benefit from Nigeria’s 13 percent oil derivation formula, which allocates additional revenue to states where crude oil is produced.
Plans for Modular Refinery in Ogbaru
Beyond recovering disputed oil wells, the state government is also working to expand its presence in the energy sector.
Ofoegbu revealed that Anambra is collaborating with foreign investors to establish a modular refinery in Osamala, located in Ogbaru Local Government Area.
The facility is expected to refine petroleum products for local consumption and nearby states.
“This modular refinery will produce petroleum and diesel to serve Anambra and neighbouring states, thereby generating huge revenue for the state,” he said.
More Oil Wells Under Dispute
The state is also pursuing additional claims over oil wells currently attributed to neighbouring states including Imo State, Rivers State, and Enugu State.
According to Ofoegbu, recovering these wells could further boost Anambra’s oil derivation earnings from the Federal Government.
Mining Sector Expansion
Aside from petroleum resources, the state government is also targeting growth in the mining sector.
Plans are underway to open a kaolin mining site in Ukpor, which officials say could help diversify the state’s revenue sources.
In addition, the government intends to establish a bentonite processing plant at Achalagu in Nteje, using raw materials sourced from Umuchu and Ufuma.
Oil Production and Federal Revenue Benefits
Nigeria’s main oil-producing belt, the Niger Delta, currently comprises nine states, including Akwa Ibom State, Bayelsa State, Rivers State, Delta State, and others.
Under the country’s revenue-sharing formula, states that produce crude oil receive 13 percent derivation based on the value of petroleum extracted within their territories.
Although Anambra has only recently gained recognition as an oil-producing state and is still awaiting full benefits from the derivation system, it already ranks among the leading recipients of federal allocations.
Data from FAAC shows that Anambra received ₦199.88 billion in federal allocations in 2025, making it the eighth-highest recipient among Nigeria’s 36 states.
Out of the ten states that received the largest allocations that year, five were oil-producing states, highlighting the significant fiscal advantage tied to petroleum production in Nigeria.
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