RMAFC moves to ensure fair sharing of 13% derivation fund
AI Executive Briefing
Gemini Flash AI~45s readThe Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has initiated a verification exercise for oil and gas wells to ensure the fair distribution of the 13% derivation fund. This process aims to resolve disputes and verify coordinates for wells drilled since 2017 to ensure fiscal equity among producing states.
Context & Background
- ✦The RMAFC is constitutionally empowered under the 1999 Constitution (as amended) to monitor revenue accruals to and disbursements from the Federation Account.
- ✦The accurate determination of well coordinates is critical because these locations directly dictate the legal and financial entitlements of sub-national entities.
Key Figures & Named Entities
•Mohammed Shehu, Chairman of the RMAFC, stated that the commission is mandated to ensure equitable disbursement of the 13% derivation fund.•The 13% derivation fund is the specific fiscal allocation subject to the verification exercise.
Outlook & Next Steps
The Inter-Agency Technical Committee will conduct physical verification and plot coordinates using approved maps, after which they will submit a technical report to the RMAFC for administrative processing and formal adoption.
Key Takeaways
AI Summary- The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has launched a verification exercise for oil and gas wells to ensure equitable distribution of the 13% derivation fund.
- The exercise involves verifying coordinates and locations of disputed and newly drilled wells dating from 2017 to the present.
- An Inter-Agency Technical Committee, including the Surveyor-General’s office and the Nigerian Upstream Petroleum Regulatory Commission, will conduct the physical verification.
Key Facts:2017 to date: The verification exercise covers oil and gas wells drilled from 2017 to the present.Thursday: The RMAFC Chairman flagged off the verification exercise in Owerri on a Thursday.
Editorial Excerpt
The RMAFC has begun an oil and gas wells verification exercise to ensure the equitable distribution of the 13% derivation fund among producing states.
Frequently Asked Questions About This Story
Why is the RMAFC conducting a verification exercise for oil and gas wells?
The exercise is intended to ensure the equitable distribution of the 13% derivation fund among oil and gas-producing states by verifying the coordinates and locations of wellheads.
Which agencies are involved in the Inter-Agency Technical Committee?
The committee includes representatives from the Office of the Surveyor-General of the Federation, the National Boundary Commission, the Nigerian Upstream Petroleum Regulatory Commission, and the Imo State Government.
