Federal Government Yet To Decide On Disputed Crude Oil Wells – RMAFC Chair

The Federal Government was yet to take any decision on the re-allocation or ceding of disputed crude oil wells between oil-producing states, the chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, has said.

In a rejoinder issued on behalf of the Commission, Shehu dismissed as “misleading and premature” a purported report circulating in sections of the media alleging that an Inter-Agency Committee had recommended the ceding of certain oil wells to specific states.

The controversy centred largely on long-standing boundary and oil well ownership disputes between Akwa Ibom State and Cross River State, which have significant implications for revenue allocation under Nigeria’s 13 per cent derivation principle.

The dispute dates back to the Supreme Court’s 2012 judgement, which ceded the oil-rich Bakassi Peninsula to Cameroon and led to the loss of several oil wells previously attributed to Cross River State. Since then, disagreements over the proper demarcation and attribution of offshore oil wells have persisted, with both states seeking clarity over their entitlements.

Against this backdrop, reports emerged alleging that the Inter-Agency Committee on the Verification of Coordinates of Disputed Crude Oil and Gas Wells between States had concluded its assignment and recommended the transfer of some oil wells.

However, Shehu clarified that no such final decision has been taken.

“The Commission wishes to categorically state that the purported report is misleading, premature, and does not represent the position or conclusions of the Revenue Mobilisation Allocation and Fiscal Commission,” he said.

He explained that while the Commission recently received a draft report from the Inter-Agency Committee on Friday, February 13, 2026, the document was still undergoing institutional review and has not been finalised.

According to him, in line with established procedures, the draft report has been transmitted to key technical and statutory stakeholders for detailed review and input. These include the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the National Boundary Commission (NBC), and the Office of the Surveyor General of the Federation (OSGOF).

Shehu said the agencies were expected to provide technical observations and recommendations, particularly regarding the verification of coordinates and boundary delineations that determine the proper attribution of crude oil and gas wells.

Following receipt of feedback from the relevant agencies, the matter will be subjected to further scrutiny by the Commission’s internal tripartite committees — the Committee on Crude Oil, Gas and Investment, and the Legal Matters Committee. These committees will undertake comprehensive technical and legal reviews before presenting their findings to the plenary session of the Commission for deliberation.

Only after the completion of these internal processes, Shehu noted, will the Commission formulate its final recommendations.

He further stated that the Commission’s final report would then be formally transmitted to the President and the Attorney-General of the Federation for consideration and further action in accordance with constitutional and statutory provisions.

“In view of the clearly established procedures, the Commission considers the report currently circulating in the media as speculative, inaccurate, and capable of misleading the public,” Shehu said.

He urged members of the public, stakeholders and media organisations to disregard the purported report and await official communication from the Commission upon completion of the statutory review process.

The allocation of oil wells is a sensitive matter in Nigeria’s fiscal federalism framework, as it directly affects derivation revenue accruing to oil-producing states. Any adjustment in oil well attribution can significantly alter monthly revenue inflows from the Federation Account Allocation Committee (FAAC), making disputes over oil-bearing territories politically and economically consequential.

RMAFC, constitutionally mandated to monitor accruals to and disbursement of revenue from the Federation Account, plays a central role in verifying the location and ownership of oil wells for revenue-sharing purposes. The Commission’s determinations often rely on technical data from regulatory and boundary agencies to ensure accuracy and compliance with the law.

Shehu reaffirmed the commission’s commitment to transparency, due process and objectivity in the discharge of its constitutional responsibilities.

“The Commission remains committed to transparency, due process, and the objective discharge of its constitutional mandates in the national interest,” he said.

With institutional reviews still underway, stakeholders in the affected states will have to await the conclusion of the statutory process before any definitive pronouncement is made on the disputed crude oil wells.