The Revenue Management and Allocation of the Oil and Gas Sector (RMAFC) has announced that it will reopen the verification of disputed oil and gas wells after several states lodged complaints about an earlier exercise used to determine the sharing of derivation revenue.
The decision follows concerns raised by the states that the original verification process was inaccurate or unfair. They argued that the methodology used to assess the wells did not reflect the true production levels or the revenue that should be allocated to them.
The earlier exercise was part of the routine procedure that calculates how revenue from oil and gas wells is distributed among the states. By reopening the verification, RMAFC aims to address the grievances and ensure a more transparent and equitable allocation.
RMAFC said it would conduct a new verification using a revised methodology, although it has not yet released a timetable for the process. The agency also indicated that it would engage with the states to clarify any remaining questions about the distribution of revenue.
These developments come amid ongoing disputes over oil revenue sharing in Nigeria, where the allocation of oil-derived income remains a contentious issue for many states.
While no further details were provided, the states expect the renewed verification to resolve the disputes and restore confidence in the revenue-sharing framework.
<small>Source: Punch Nigeria — read the original story there.</small>