RMAFC begins fresh verification of disputed oil wells to determine 13% derivation funds for Rivers, Akwa Ibom, Delta, others
The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has commenced a fresh physical verification of disputed and newly drilled crude oil and gas wells across nine oil-producing states in a move aimed at ensuring the fair distribution of the 13 per cent derivation fund.
The exercise, flagged off in Owerri, Imo State, covers oil and gas wells drilled or disputed from 2017 to date in Delta, Ondo, Edo, Anambra, Imo, Bayelsa, Rivers, Cross River and Akwa Ibom states. It is expected to determine the exact locations of the wellheads that form the basis for revenue allocation to the affected states.
Speaking at the inauguration, RMAFC Chairman, Dr Mohammed Bello Shehu, described the exercise as critical to promoting accuracy, transparency and fairness in the administration of the 13 per cent derivation fund, noting that the Commission is constitutionally mandated to monitor revenue accruing to and disbursed from the Federation Account.
He said the exact coordinates and spatial alignment of oil and gas wellheads directly determine the legal and financial entitlements of oil-producing states, stressing that every verified coordinate and technical assessment must meet statutory standards.
According to Shehu, the verification will include the examination of disputed and newly drilled oil and gas well coordinates, physical inspection of affected wellheads, accurate plotting using approved maps and consideration of relevant court judgments in resolving ownership disputes.
He directed members of the Inter-Agency Technical Committee (IATC) and technical officers participating in the exercise to carry out the assignment with professionalism, diligence and technical precision, adding that the committee’s harmonised report would be submitted exclusively to the Commission for ratification and formal adoption.
The committee comprises representatives of the Office of the Surveyor-General of the Federation, the National Boundary Commission and the Nigerian Upstream Petroleum Regulatory Commission, alongside other technical experts.
Representing the Imo State Governor at the ceremony, the state’s Commissioner for Petroleum, Emeka Mgbudem, joined other government officials and RMAFC commissioners at the flag-off, which formally launched the nationwide field verification exercise.
RMAFC explained that although a similar verification was previously conducted, the exercise was repeated to address outstanding issues raised by stakeholders and ensure that all concerns are adequately resolved before final decisions are taken on oil well ownership and derivation revenue allocation.
