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Oil Wells: Bayelsa State, Others to Refund N17.5 billion to Rivers

By on November 12, 2012

Gov. Amaechi

The Federal Government has ordered seven states to refund N17.5 billion to Rivers State following a chain of controversies over the ownership of some wells involving Rivers and Bayelsa States.

The affected states are Akwa Ibom, Delta, Bayelsa, Imo, Edo, Abia, and Ondo whom have received the said amount as part of their 13 percent derivation revenue from two embattled oil wells.

After series of controversies, the River State government has finally proved that the oil well belongs to it.

After submissive protests by Rivers State that its revenue from the affected oil wells had been shared to oil producing states by the Federal Government since 2007, the Federal Government ordered the refund to Rivers State.

In response to the directive, Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, wrote the Accountant General of the Federation to effect the reduction of the money from the allocations of the seven states with immediate effect.

The letter reads, “I write to inform you that the Rivers State Government in a letter Ref. No. COM/FIN/T/01 of October 3, 2011 requested for the payment of all the 13 per cent derivation revenue due to the state from Nda and Okwori oil fields from 2007 till date.

“The commission examined the request and confirmed that Okwori and Nda oil fields belong to Rivers State based on the report of the Inter-Agency Committee on the attribution of offshore oilfields to Littoral states, 2008 and submissions by National Boundary Commission, NBC and Office of the Surveyor-General of the Federation, OSGF.

“Furthermore, the 13 per cent derivation proceed from the two oil fields were shared amongst all the oil producing states from April 2009 to June 2010, while Akwa Ibom State exclusively enjoyed the proceed from Okwori oil field from July to August, 2010 and from July 2010 to January 2011 in the case of Nda oil field.

“It is to be noted that the Rivers State Government had since September 2010 and February 2011 been receiving its due share of 13 per cent derivation proceed from Okwori and Nda fields respectively.

“Consequently, the commission after considering the request from the Rivers State Government and the submission from both the NBC and OSGF, approved that Rivers State should be refunded the sum of N17.566bn by all the oil producing states being accrued 13 per cent derivation fund from April 2009 to January 2011.

“The amount to be refunded by each state is as follows: Abia, N226.25 million; Akwa Ibom, N9. 567 bn; Bayelsa, N2.071 bn; Delta, N4.142 bn; Edo, N305.69 million; Imo, N260.73 million; Ondo, N952.54 million.”