RMAFC reopens oil, gas wells verification over 13% derivation disputes

…Discards previous report amid states’ claims, counterclaims
…Orders fresh coordinates, maps verification, field inspections

By Emma Ujah, Abuja Bureau Chief

The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has reopened the verification of disputed and newly drilled oil and gas wells across Nigeria in a move aimed at resolving controversies over the sharing of the 13 per cent derivation fund among oil and gas-producing states.

The commission, on Thursday, inaugurated a reconstituted Inter-Agency Technical Committee, IATC, to verify oil and gas wells from 2017 to date, following the rejection of its previous draft report amid claims, counterclaims and complaints by various states.

The fresh exercise is expected to establish the correct coordinates of disputed and newly drilled wells, accurately plot them on approved maps and determine their actual locations and boundaries for revenue allocation purposes.

Speaking at the inauguration of the committee in Abuja, RMAFC Chairman, Dr Mohammed Bello Shehu, said the exercise was in line with the commission’s constitutional responsibility to monitor accruals to and disbursement of revenue from the Federation Account.

He said the verification was particularly important to ensuring equitable distribution of the 13 per cent Derivation Fund among oil and gas-producing states.

Shehu explained that the commission discarded the previous draft report after several states raised issues requiring the re-verification of the coordinates of disputed and newly drilled wells.

According to him, the reconstituted committee must ensure that every verified coordinate, map used and boundary evaluated reflects the actual situation on the ground.

He directed the committee to take relevant court decisions into consideration, rely strictly on approved maps and conduct physical field verification of affected oil and gas wells where necessary.

The RMAFC chairman said the new process was designed to strengthen fiscal transparency, equitable revenue allocation and institutional integrity, while providing a lasting resolution to disputes among beneficiary states.

RMAFC creates two-tier structure

To enhance accountability, Shehu disclosed that the commission had established a two-tier governance structure for the exercise.

He said the first tier would comprise technical officers and subject-matter experts from RMAFC, the Office of the Surveyor-General of the Federation, OSGoF; National Boundary Commission, NBC; and Nigerian Upstream Regulatory Commission, NUPRC.

The technical team, he said, would undertake ground-level verification, field inspections, technical analysis and preparation of the initial report.

The second tier, which he described as the Executive Committee, would be led by the leadership of RMAFC and would provide strategic direction, coordinate the participating agencies and oversee final approvals before the findings were presented for formal ratification.

Shehu said RMAFC would provide the committee with the necessary institutional support to enable it to carry out the assignment effectively.

He added that the commission would engage relevant security authorities to facilitate administrative clearances, tactical assistance and security coverage for field operations, particularly in complex and coastal environments.

To promote transparency, the chairman said Surveyors-General of affected states and representatives of the Senate Committee on Petroleum Resources (Upstream) would participate in the exercise as observers.

He urged members of the committee to approach the assignment with integrity, objectivity and patriotism, stressing that its outcome would have implications for clarity, fairness and stability in revenue distribution.

Shehu formally inaugurated the reconstituted IATC and expressed confidence that its work would enhance the credibility of the revenue monitoring and allocation process.

Also speaking, RMAFC Secretary, Comrade Tosin Adeyanju, urged members of the committee to put the interest of the nation above other considerations in carrying out the assignment.

Adeyanju called for objectivity, fairness and diligence, noting that the committee’s work would attract greater scrutiny in view of lessons learnt from previous verification exercises.

He expressed optimism that the committee would produce a credible outcome acceptable to the nation and the affected states and serve as a lasting legacy of the members’ commitment to national development.