Cross River Governor Demands Fair Treatment in Federal Oil-Producing States Re-listing
Governor Bassey Otu has called on Nigeria's federal government to ensure equitable treatment for Cross River State during the ongoing re-listing process for oil-producing states, citing the state's historical sacrifices for national unity.
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Cross River State Governor Bassey Otu has intensified calls for the federal government to accord his state fair treatment in the ongoing re-listing process that determines which states qualify for oil-producing status and the accompanying revenue allocations.
The governor's demand comes amid a broader federal review of states entitled to benefits from Nigeria's oil wealth, a process that carries significant financial implications for states seeking recognition of their natural resource contributions. Cross River's oil production status has been a contentious issue, with the state arguing it has been historically underrepresented in revenue allocation despite possessing oil wells.
"Cross River has made sacrifices for Nigeria's unity and peace; it deserves fairness, justice and full recognition as an oil-producing state," Otu stated, according to Vanguard News. The governor's appeal underscores growing tensions between states and the federal government over resource control and revenue sharing, issues that have long plagued Nigeria's federal structure.
Historical Context of Cross River's Oil Claims
Cross River's status as an oil-producing state has been disputed for years, particularly following the 1967 creation of Rivers State from the former South-Eastern State, which included present-day Cross River. The state lost significant oil-bearing territories during subsequent state creation exercises, a reality that has shaped its economic trajectory and relationship with the federal government.
The re-listing process Governor Otu referenced represents a critical juncture for Cross River's fiscal future. States designated as oil-producing receive a share of the 13 percent derivation revenue constitutionally allocated to states where natural resources are extracted. For Cross River, full recognition could translate to billions of naira in additional revenue annually, funds the state government argues are essential for development projects and compensation for environmental degradation.
According to the Peoples Gazette, Governor Otu's administration has been actively engaging federal authorities to ensure Cross River receives equitable consideration. The governor's emphasis on the state's "sacrifices for Nigeria's unity" appears to reference Cross River's peaceful ceding of territory during past boundary adjustments and state creation exercises, decisions that diminished its resource base but were made in the interest of national cohesion.
Implications for Revenue Allocation
The stakes in this re-listing process extend beyond Cross River State. Nigeria's revenue allocation formula has been a perennial source of friction in the federation, with states in the oil-rich Niger Delta region arguing they bear disproportionate environmental costs while receiving insufficient compensation. The 13 percent derivation principle, enshrined in the 1999 Constitution, was designed to address this imbalance, but disputes over which states qualify and how production is measured continue to generate controversy.
Cross River's case is particularly complex because some of its oil wells are located in disputed maritime boundaries and offshore areas where jurisdictional questions arise. The state has maintained that historical production data and geological surveys support its claim to substantial oil reserves, but bureaucratic processes and competing claims from neighboring states have complicated its quest for full recognition.
Governor Otu's public appeal signals a strategic shift toward greater transparency in the re-listing process. By framing the issue in terms of fairness and historical sacrifice, the governor appears to be building both legal and moral arguments for Cross River's inclusion. The approach also reflects broader calls across Nigeria for reform of the revenue allocation system, with many states arguing the current framework inadequately reflects their contributions and needs.
Federal Government Response Awaited
As of now, the federal government has not publicly responded to Governor Otu's specific demands regarding Cross River's status. The re-listing process is reportedly being conducted by relevant federal agencies, including the Revenue Mobilisation Allocation and Fiscal Commission, which oversees revenue distribution among the three tiers of government.
The outcome of Cross River's appeal will likely set precedents for other states with contested oil-producing status. It may also influence ongoing national conversations about restructuring Nigeria's federal system and devolving more fiscal powers to states, debates that have gained momentum amid economic pressures and calls for greater regional autonomy.
For Cross River State, the immediate priority remains securing federal recognition that translates into increased revenue. Governor Otu's administration has indicated it will continue engaging federal authorities while mobilizing documentary evidence to support the state's claims, setting the stage for what could be a protracted but potentially transformative negotiation over resource control and fiscal federalism in Nigeria.