The Revenue Mobilisation Allocation and Fiscal Commission has commenced a fresh verification of disputed and newly drilled oil and gas wells following complaints from some states over an earlier assessment.
The new exercise covers wells drilled from 2017 to date and is expected to help determine the states entitled to revenue from the 13 per cent derivation allocation.
RMAFC Chairman, Dr Mohammed Shehu, disclosed this in Abuja during the inauguration of a reconstituted inter-agency committee responsible for the exercise.
Shehu said the commission had set aside the previous draft report after states raised concerns about the accuracy of the coordinates and locations used to identify disputed oil and gas wells.
According to him, the fresh verification will involve checking the coordinates of the affected wells and plotting them accurately on officially approved maps.
The commission said the exercise is part of its responsibility to monitor revenue accruing to the Federation Account and ensure that derivation funds are distributed based on verified oil and gas assets.
Shehu directed the committee to consider relevant court judgments, use approved maps and conduct physical inspections where necessary to establish the actual locations of the disputed wells.
The new verification framework will operate through two committees.
The technical team comprises officials and experts from RMAFC, the Office of the Surveyor-General of the Federation, the National Boundary Commission and the Nigerian Upstream Petroleum Regulatory Commission.
It will be responsible for field inspections, technical assessments and preparation of the initial findings.
An executive committee led by the RMAFC leadership will supervise the process, coordinate the participating agencies and review the findings before they are submitted for final approval.
RMAFC said security agencies would also be involved to provide clearance and protection for officials working in difficult locations, including coastal areas.
Surveyors-General from the affected states and members of the Senate Committee on Petroleum Resources (Upstream) will participate as observers to improve transparency.
The commission said the exercise is intended to provide a clearer basis for resolving disputes over the location of oil and gas wells and the distribution of derivation revenue among beneficiary states.
RMAFC Secretary, Tosin Adeyanju, urged members of the committee to remain objective and thorough, noting that the outcome of the exercise would be closely scrutinised because of concerns raised over previous verification efforts.
The fresh exercise is expected to provide an updated assessment of disputed and newly drilled wells and guide future decisions on the allocation of derivation revenue.
