RMAFC: Launches Oil Gas Wells Verification for 13% Derivation Fund

• The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has launched an `oil gas wells verification` exercise.
• This initiative aims to ensure equitable distribution of the 13% derivation fund among `oil and gas producing states`.
• The exercise will verify coordinates of disputed and newly drilled wells from 2017, using an Inter-Agency Technical Committee.
• RMAFC's authority for `Federation Account disbursement monitoring` is derived from `Paragraph 32(a)` of the `1999 Constitution`.
• Accurate well locations are crucial as they directly determine the financial entitlements of affected states from the `Nigeria 13% derivation fund distribution`.

The accurate mapping of oil and gas well coordinates and their spatial alignment directly determines the financial entitlements and legal rights of the affected states.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) recently initiated a comprehensive `oil gas wells verification` exercise, signaling a renewed focus on ensuring fairness in the distribution of the 13% derivation fund. Chairman Mohammed Shehu launched the initiative in Owerri on Thursday, emphasizing the commission's commitment to equitable resource allocation among `oil and gas producing states revenue`. This critical undertaking aims to meticulously examine and confirm the precise coordinates of both existing disputed wells and all new wells drilled since 2017, addressing long-standing issues of accuracy in revenue sharing.

An Inter-Agency Technical Committee has been established to spearhead this effort. Its mandate includes conducting physical verifications of the identified wells, ensuring the accurate plotting of their geographical coordinates, and strictly adhering to approved mapping standards throughout the process. Furthermore, the committee is tasked with considering previous court decisions when resolving any disputes related to `oil and gas wells`, ensuring a legally sound approach to its findings. All technical reports and conclusions from this extensive verification will be submitted exclusively to the RMAFC for final ratification and adoption.

The RMAFC's authority to undertake such a significant `oil gas wells verification` stems directly from its constitutional mandate. As outlined in `Paragraph 32(a)` of Part I of the Third Schedule of the `1999 Constitution`, as amended, the commission is empowered to `monitor accruals to and disbursement of revenue from the Federation Account`. This includes the vital `Nigeria 13% derivation fund distribution`, which is specifically allocated to `oil and gas producing states`. Chairman Shehu underscored that this constitutional provision grants the `Revenue Mobilisation Allocation and Fiscal Commission` the explicit power to guarantee the equitable disbursement of these funds.

The commission's role in `Federation Account disbursement monitoring` is therefore not merely administrative but foundational to ensuring fiscal justice across the federation. By meticulously verifying the sources of revenue, the RMAFC aims to uphold the principles enshrined in the constitution, preventing discrepancies that could lead to unfair financial entitlements for states reliant on oil and gas production. This exercise is a direct fulfillment of its duty to maintain transparency and accuracy in national revenue management.

The ongoing `RMAFC oil gas wells verification` holds profound implications for the financial entitlements of `oil and gas producing states revenue`. The precise coordinates and geographical locations of these wells are the fundamental determinants of how the 13% derivation fund is allocated. Chairman Shehu highlighted that this exercise is paramount for establishing statutory accuracy, technical fidelity, and fiscal equity within the broader framework of Federation Account allocations. The accurate mapping of oil and gas well coordinates and their spatial alignment directly determines the financial entitlements and legal rights of the affected states.

The integrity of this process is further reinforced by the composition of the Executive and Technical Committees, which includes representatives from key federal and state bodies. These include the Office of the Surveyor-General of the Federation, the National Boundary Commission, the Nigerian Upstream Petroleum Regulatory Commission, and the Imo State Government. This multi-agency approach aims to ensure that the verification is conducted with the highest standards of professionalism and impartiality, ultimately leading to a more just and accurate `Nigeria 13% derivation fund distribution` for all eligible states. The technical officers deployed for this task have been instructed to adhere strictly to established surveying standards, official maps, and all relevant legal provisions, ensuring the credibility and enforceability of the findings.

Lawyers advising oil and gas companies or state governments in Nigeria should monitor the RMAFC's ongoing oil and gas wells verification exercise, as its findings will directly impact revenue allocations from the 13% derivation fund and could lead to new disputes or adjustments in financial entitlements for affected entities. Compliance officers should ensure their well coordinate data is accurate and aligns with established surveying standards to mitigate future challenges.

Source: Original reporting via PUNCH.