Commission says process far from complete, confirms receiving draft report projecting Cross River as oil-producing state but insists on further reviews
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has distanced itself from circulating reports claiming that disputed crude oil and gas wells have been recommended for allocation to specific states, describing such narratives as "premature" and inconsistent with ongoing institutional processes.
In a statement issued Sunday, RMAFC Chairman Dr. Mohammed Shehu addressed what he termed a "purported report" allegedly from the Inter-Agency Committee on the Verification of Coordinates of Disputed Crude Oil and Gas Wells between States, which has been circulating in national media.
'Process Not Concluded'
The commission emphasized that no final decision has been reached regarding any oil wells, as the verification exercise remains subject to multiple layers of technical and legal review.
"At this stage, there is no finalised recommendation or decision regarding the ceding or reallocation of any oil wells, as due institutional processes are still ongoing," Shehu stated .
The chairman explained that RMAFC operates a clearly defined and transparent procedure for matters of national significance, and the process concerning disputed oil wells has not yet been concluded.
What Actually Happened
According to the commission, it received a draft report from the Federal Government's Inter-Agency Committee on Nigeria's Oil-Producing States on Friday, February 13, 2026. Ten of the committee's 14 members presented findings from a nationwide verification of crude oil and gas coordinates conducted between August 2025 and February 2026 .
The extensive exercise involved field verification, technical reconciliation of state submissions, and a final plenary plotting of coordinates at RMAFC headquarters held from January 24 to 31, 2026. Sources describe it as "the most comprehensive coordinates verification undertaken in recent years" .
Notably, the draft report reportedly projects Cross River State as an oil-producing state—a development that could have significant implications for revenue allocation if confirmed through subsequent processes.
Next Steps
Consistent with established protocol, the draft document has been transmitted to key statutory stakeholders for technical input, including:
- The Nigerian Upstream Petroleum Regulatory Commission
- The National Boundary Commission
- The Office of the Surveyor General of the Federation
Following receipt of observations and recommendations from these agencies, the matter will undergo further scrutiny by RMAFC's internal tripartite committees, comprising 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 RMAFC for deliberation and final recommendations," the commission stated .
Only after this multi-stage process concludes will a final report be formally transmitted to the President and the Attorney-General of the Federation for consideration and action in line with applicable laws and constitutional provisions.
The Bigger Picture
The dispute over oil wells carries enormous financial implications for Nigeria's federating units, as revenue from crude oil and gas production forms the backbone of national allocations. Any reallocation of wells between states could significantly impact monthly revenue distributions that determine states' ability to fund development projects and meet payroll obligations.
For Cross River State, being formally recognized as an oil-producing state would entitle it to additional revenue from the 13 percent derivation principle enshrined in the constitution—a potential windfall worth billions of naira annually.
But as RMAFC's statement makes clear, that outcome remains far from certain. The commission's insistence on due process suggests that any final determination will face rigorous scrutiny before it reaches the president's desk.
For now, the message to all parties is unequivocal: no wells have been ceded, no decisions have been made, and the process continues.
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