The Revenue Mobilisation Allocation and Fiscal Commission has reopened the verification of disputed and newly drilled oil and gas wells following complaints, claims and counterclaims from states over an earlier exercise used in determining the sharing of the 13 per cent derivation revenue.
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The Commission said it discarded the previous draft verification report after affected states raised concerns, particularly over the coordinates and locations of disputed and newly drilled oil and gas 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 previous draft report was rejected after several states challenged aspects of the verification exercise.
“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.
“He noted that the concerns centred largely on the need to re-verify the coordinates of disputed and newly drilled wells and accurately plot the verified coordinates on approved maps,” the statement said.
The fresh verification could have significant implications for the distribution of the 13 per cent derivation revenue among oil- and gas-producing states because the geographical location of producing assets determines which states are entitled to derivation proceeds from them.
Shehu said the exercise was in line with RMAFC’s constitutional responsibility to monitor revenue accruing to and disbursed from the Federation Account and was intended to ensure fairness and equity in the distribution of derivation revenue.
According to him, the reconstituted committee must ensure that the coordinates, maps and boundaries used in determining the locations of the affected wells accurately reflect the situation on the ground.
He directed the committee to take relevant court judgments into consideration, rely strictly on approved maps and conduct physical field verification of disputed oil and gas wells where necessary.
RMAFC said it had adopted a two-tier structure for the exercise in order to strengthen technical scrutiny, accountability and credibility.
The first tier consists of technical officers and subject-matter experts drawn from RMAFC, the Office of the Surveyor-General of the Federation, the National Boundary Commission and the Nigerian Upstream Petroleum Regulatory Commission.
The technical team is expected to carry out ground-level verification, field inspections and technical analysis, as well as prepare the initial report arising from the exercise.
The second tier is an Executive Committee led by the RMAFC leadership, which will provide strategic direction, coordinate the participating agencies and oversee final approvals before the findings are presented for formal ratification.
Shehu also disclosed that the Commission would engage relevant security agencies to provide administrative clearances, tactical support and security coverage for officials involved in the field operations, particularly in difficult coastal areas and other complex environments.
To improve transparency and confidence in the process, Surveyors-General from the affected states and representatives of the Senate Committee on Petroleum Resources (Upstream) will participate in the exercise as observers.
The RMAFC chairman urged members of the committee to discharge the assignment with integrity, professionalism and objectivity.
He said the goal was to achieve “clarity, fairness, stability and lasting resolution of disputes over oil and gas wells among beneficiary States.”
Shehu expressed confidence that the fresh verification exercise would strengthen the credibility of Nigeria’s revenue monitoring and allocation process and help resolve longstanding disputes over the ownership and location of oil and gas wells.
Also speaking at the inauguration, the Secretary of RMAFC, Tosin Adeyanju, urged members of the committee to place national interest above all other considerations and ensure fairness throughout the exercise.
Adeyanju said the committee’s work would attract heightened scrutiny because of controversies arising from previous verification exercises.
He therefore called on members to demonstrate diligence, fairness and objectivity, expressing optimism that the committee would produce a credible outcome capable of addressing outstanding concerns among 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, as well as commissioners representing Osun, Edo, Yobe, Taraba, Zamfara, Jigawa and Ogun states.
Representatives of other relevant government agencies were also present at the event.
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