The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called for the equitable distribution of the 13 per cent derivation fund among oil and gas-producing states.
The Chairman of the commission, Mohammed Shehu, explained that the exercise is critical to determining the accuracy of revenue allocations from the Federation Account.
He made the call in Owerri during the flag-off of an oil and gas wells verification exercise today, noting that the coordinates and locations of oil and gas wells directly determine the financial entitlements of the affected states.
“This exercise represents a crucial phase in establishing statutory accuracy, technical fidelity, and fiscal equity within the Federation Account allocation framework,” he said.
“The determination of exact coordinates and spatial alignments for the subject wellheads directly governs the legal and financial entitlements of the respective sub-national entities,” he added.
Shehu noted that the commission was empowered by the 1999 Constitution, as amended, to monitor revenue accruals to and disbursements from the Federation Account, including the 13 per cent derivation fund.
According to him, the exercise would involve examining and verifying the coordinates of disputed oil and gas wells, as well as newly drilled wells from 2017 to date.
To ensure a thorough process, the Inter-Agency Technical Committee set up for the exercise will conduct physical verification of affected wells, ensure accurate plotting of their coordinates, and use only approved maps.
The committee will also consider court decisions in resolving disputes over oil and gas wells and submit its findings exclusively to the commission for ratification and adoption.
Shehu urged technical officers deployed for the exercise to carry out their assignments in accordance with established surveying standards, official maps, and relevant legal provisions.
He added the committee’s technical report would be submitted exclusively to the commission for administrative processing and formal adoption.
SOURCE: theguildng.com
