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 states about an earlier exercise used to determine the sharing of the 13 per cent derivation revenue. The commission discarded the previous draft report after receiving claims, counterclaims, and complaints from states, particularly over the coordinates and locations of disputed and newly drilled wells.

The reconstituted Inter-Agency Technical Committee, which includes technical officers and subject-matter experts, will conduct ground-level verification, field inspections, and technical analysis, as well as prepare the initial report from the exercise. The second tier, an Executive Committee led by the RMAFC leadership, will provide strategic direction.

The verification process is crucial for ensuring equitable distribution of derivation revenue among oil and gas-producing states, as the location of producing assets determines entitlement to the 13 per cent derivation fund.

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