RMAFC moves to resolve ownership of disputed oil wells

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced a comprehensive exercise to settle long-standing disputes over the ownership of newly producing and contested oil and gas wells.

A process that will determine how the constitutionally mandated 13% derivation funds are shared among Nigeria’s oil-producing States.

According to a statement by the Commission, Mohammed Shehu, Chairman of RMAFC said the verification exercise covers all oil-producing areas, including Akwa Ibom, Cross River, Bayelsa, Edo, Ondo, Rivers, Delta, and offshore locations.

He explained that, under the law, States where minerals are produced are entitled to 13% of the revenue generated from crude oil and gas.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) requested RMAFC’s intervention to confirm the exact locations of new and disputed wells. To achieve this, RMAFC established an Interagency Technical Committee comprising representatives from the NUPRC, the Office of the Surveyor General of the Federation, the National Boundary Commission, and the Commission itself.

The Committee, formed in July, moved into the field in September and October to take physical coordinates of oil and gas wells.

“I was there myself at the opening ceremony, and we actually went to the field to take those coordinates,” he said

He added that the field teams ventured into difficult areas, including rivers, creeks, and deep offshore locations, to ensure that no oil well was overlooked.

He said that the fieldwork concluded last week, and the next stage involves plotting the coordinates, a process expected to take about five days, which would clearly show the location of each oil well and determine which State is entitled to the corresponding derivation funds.

“There have been traditional disputes between states in terms of who owns what.

“Whenever new oil fields start producing, they want to know which state actually owns that or which state should get that 13 percent. We intend to do this fairly, justly and equitably, without any bias,” the chairman said

Khadijah Sulaiman Kumo, Director of Crude Oil at RMAFC and Chairman of the Interagency Technical Committee, described the coordinate plotting as a historic step for both the Commission and the oil-producing states.

“RMAFC’s role is constitutionally backed, giving us the authority to monitor and ensure fair distribution of funds from the Federation Account. This exercise will accurately link newly producing wells to the states that own them, ensuring that derivation funds are correctly allocated,” she said

Kumo urged state representatives to participate fully in the plotting process to ensure trust in the outcome. She emphasized that the Commission will act as an unbiased umpire, deploying fairness and justice in all decisions.

She said the plotting of coordinates is scheduled to continue until Friday, with Surveyors General and Commissioners from States such as Delta and Edo in attendance.

Kumo assured that, in the digital age, there would be no manipulation of the data, reinforcing the Commission’s commitment to fairness.