The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reopened the verification of disputed and newly drilled oil and gas wells, a move that could affect the distribution of the 13 per cent derivation revenue among oil-producing states.
The commission said the fresh exercise became necessary after states raised claims, counterclaims and complaints about an earlier verification report, particularly the coordinates and locations of disputed wells.
RMAFC disclosed this in a statement issued on Thursday by its Head of Information and Public Relations Unit, Maryam Umar-Yusuf, following the inauguration of a reconstituted Inter-Agency Technical Committee to verify disputed and newly drilled oil and gas wells from 2017 to date.
Speaking at the inauguration in Abuja, the Chairman of RMAFC, Dr Mohammed Shehu, said the commission had discarded the previous draft report because of concerns raised by various states.
“The Chairman explained that the Commission discarded the previous draft report on the oil and gas wells verification exercise following several claims, counterclaims and complaints from various States,” the statement said.
The fresh verification is significant because the location of producing oil and gas assets determines the states entitled to derivation revenue from them. Any changes to the verified locations of wells could therefore have implications for the allocation of the 13 per cent derivation fund.
Shehu said the exercise was part of RMAFC’s constitutional responsibility to monitor revenue accruing to and disbursed from the Federation Account, adding that it was intended to ensure equitable distribution of derivation revenue.
He directed the reconstituted committee to ensure that the coordinates, maps and boundaries used in determining the locations of affected wells reflected the actual situation on the ground.
The technical team is expected to conduct ground-level verification, field inspections and technical analysis before preparing an initial report.
The second tier, an Executive Committee led by the RMAFC leadership, will provide strategic direction, coordinate the participating agencies and oversee final approvals before the findings are presented for formal ratification.
Shehu further disclosed that relevant security agencies would be engaged to provide administrative clearances, tactical assistance and security coverage for officials conducting field operations, particularly in difficult coastal and other complex environments.
To improve transparency, Surveyors-General from the affected states and representatives of the Senate Committee on Petroleum Resources (Upstream) will participate as observers.
The RMAFC chairman urged members of the committee to carry out the assignment with integrity and objectivity, saying the goal was to achieve “clarity, fairness, stability and lasting resolution of disputes over oil and gas wells among beneficiary States.”
He expressed confidence that the fresh verification would strengthen the credibility of the country’s revenue monitoring and allocation process.
Also speaking, the Secretary of RMAFC, Tosin Adeyanju, urged members of the committee to prioritise national interest and ensure fairness in carrying out the assignment.
Adeyanju noted that the committee’s work would attract greater scrutiny because of concerns arising from previous verification exercises. He called for objectivity, fairness and diligence, expressing optimism that the committee would produce a credible outcome capable of resolving outstanding concerns among the affected states.
The inauguration was attended by the Chairman of the Crude Oil Monitoring Committee and RMAFC Federal Commissioner representing Kano State, Adamu Abdu Fanda, alongside commissioners representing Osun, Edo, Yobe, Taraba, Zamfara, Jigawa and Ogun states.
Representatives of other relevant government agencies were also present.