RMAFC reopens disputed oil wells verification after states’ complaints

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reopened verification of disputed oil and gas wells following complaints from various states over the previous exercise. RMAFC's Head of Information and Public Relations Unit, Maryam Umar-Yusuf, announced this in a statement following the inauguration of a reconstituted Inter-Agency Technical Committee to verify the disputed wells from 2017 to date.

The previous draft report was rejected due to numerous claims, counterclaims, and complaints about the coordinates and locations of the disputed and newly drilled wells. The Chairman of RMAFC, Dr. Mohammed Shehu, explained that the concerns were mainly focused on re-verifying the coordinates of disputed and newly drilled wells and accurately plotting the verified coordinates on approved maps.

The fresh verification exercise aims to ensure equitable distribution of the 13% derivation revenue among oil and gas-producing states, as the location of producing assets determines which states are entitled to receive derivation revenue from them. The reconstituted committee will follow a two-tier structure to strengthen technical scrutiny and accountability.

The first tier includes technical officers and subject-matter experts from various agencies, while the second tier comprises an Executive Committee led by RMAFC leadership. The committee will prioritize national interest and ensure fairness in carrying out the assignment, with representatives of relevant government agencies and surveyors-general from affected states participating as observers.