Anambra Recovers Oil Wells from Delta, Eyes Higher Federal Revenue
Anambra Secures Oil Wells from Delta in Move to Increase Federal Allocations
The Anambra State Government says it has successfully recovered several oil wells previously attributed to neighbouring Delta State, a development expected to increase the state’s share of oil-related revenue from the Federal Government.
State officials disclosed that the recovery followed a verification exercise conducted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on oil wells located within the Anambra River Basin.
According to government representatives, the outcome of the verification confirms that the oil wells rightfully belong to Anambra. Once the commission’s report receives formal approval, the state will begin receiving additional revenue from the assets through Nigeria’s oil derivation framework.
Boundary Dispute Behind the Oil Wells
The development was disclosed by Charles Ofoegbu, Managing Director of the Anambra State Solid Minerals Development Company and Chairman of Anambra State Petroleum Energy Resources Limited, during a briefing in Awka.
Ofoegbu explained that the oil wells had long been part of a boundary dispute between Anambra and Delta states, which led to the wells previously being credited to Delta.
Following the federal verification exercise, authorities concluded that the wells fall within Anambra’s territorial boundaries, paving the way for the state to benefit from their production revenue.
Implications for Oil Derivation Revenue
Nigeria’s revenue-sharing system allocates 13 percent oil derivation revenue to states where crude oil is produced. This means Anambra could see a rise in federal allocations once the recovered wells are formally recognised in the national revenue framework.
Industry analysts note that the additional wells could strengthen the state’s fiscal position and support development initiatives across infrastructure, social services and economic programmes.
Data from the Federation Account Allocation Committee (FAAC) indicates that Anambra received about ₦199.88 billion in federal allocations in 2025, making it one of the largest beneficiaries among Nigeria’s 36 states.
Anambra’s Emerging Status as an Oil-Producing State
Anambra only recently joined the list of Nigeria’s oil-producing states after gaining official recognition in 2025, with an estimated initial production capacity of about 3,000 barrels of crude oil per day.
The recognition allows the state to benefit from the oil derivation formula, providing a new revenue stream alongside federal allocations and internally generated revenue.
Officials say the recovery of the disputed oil wells strengthens Anambra’s position within Nigeria’s oil-producing region and could significantly expand its energy-sector income.
Plans to Expand Energy and Mineral Development
Beyond the recovered oil wells, the state government is pursuing additional projects aimed at expanding its energy and natural resource base.
According to officials, the government is collaborating with foreign investors to establish a modular refinery in Osamala, Ogbaru Local Government Area, which will produce petroleum products for local consumption and neighbouring states.
The state is also planning to develop solid mineral resources, including:
A kaolin mining project in Ukpor
A bentonite processing plant in Achalagu, Nteje
Authorities say these projects will help diversify revenue sources while strengthening industrial activity within the state.
Outlook for Anambra’s Fiscal Position
The recovery of the disputed oil wells marks a significant milestone in Anambra’s resource development strategy. If formally approved by federal authorities, the additional wells could increase the state’s oil derivation earnings and enhance its fiscal capacity.
For policymakers and investors, the development highlights the economic importance of resource verification, boundary resolution and energy sector expansion in strengthening sub-national revenue generation in Nigeria.
