13% DERIVATION: RMAFC REOPENS OIL WELLS PROBE, DISCARDS PREVIOUS REPORT

By Reloaded News Desk

The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has reopened the verification of disputed oil and gas wells after states raised objections to an earlier exercise used in determining the sharing of derivation revenue.

The commission said it had discarded the previous draft verification report following claims, counterclaims and complaints from states, particularly over the coordinates and locations of disputed and newly drilled oil and gas wells.

RMAFC said a reconstituted Inter-Agency Technical Committee had been inaugurated to verify disputed and newly drilled oil and gas wells from 2017 to date.

The exercise is directly linked to the allocation of the 13 per cent derivation revenue accruing to oil-producing states.

RMAFC Chairman, Mohammed Shehu, said the earlier draft report could not be relied upon because of the complaints received from stakeholders.

The new verification is expected to establish the status and locations of the affected wells and provide updated data for revenue-sharing purposes.

The commission said the exercise would be based on fresh verification rather than the disputed earlier report.