Oil Well Tussle: RMAFC Confirms Paying Rivers After Court Ruling |The Source

By Tosin Olatokunbo

Controversy over the ownership of Soku Oil and Gas well between Rivers and Bayelsa states has continued following confirmation by the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC that it has allocated proceeds from the Well to the Governor Nyesom Wike-led state in compliance with the court ruling on the matter.

The two oil bearing states are still in court to determine the rightful owner of the oil well, this, however, has not stopped the bickering following last December Federal High Court, Abuja judgment that favoured Rivers state.

Bayelsa state government which has now taken the matter to the Court of Appeal is also accusing the revenue agency of denying it funds from the oil well despite the pendency of the case.

Recall also the federal government has recently categorized the state among insolvent states in the country, an assertion that Governor Douye Diri debunked during a visit to the state by the management of RMAFC.

But the agency denied on Thursday, accusation that the commission has been deducting the state’s revenue in favour of Rivers State following the court ruling.

According to a statement the agency said the “allegation does not in any way represent the fact, adding that what the Commission has done was “in compliance with the judgment of the Federal High Court delivered on Monday, December 16, 2019 , by Justice I.E. Ekwo, in a suit No FHC/ABJ/C5/984/2019 between the Attorney-General of Rivers State – Plaintiff and National Boundary Commission – Defendant, that the commission attributed Soku Oil and Gas production to Rivers State.

While playing host to delegation from the agency, last month, Governor Diri said the financial problems facing the state cannot be totally divorced from the inequitable distribution of resources by the federal government.

The governor said resources must be justly allocated in favour of oil producing states which are the biggest contributors to the nation’s wealth.

Diri said“We cannot be doing things the same way and expect a different result. A state where a good percentage of the revenue that Nigeria shares is said to be bankrupt. How does that happen in any normal society? It tells us that there is an abnormality in this country. Should Bayelsa be bankrupt, then Nigeria should also be declared bankrupt.

“I am sure that the unfair treatment given to Bayelsa and other Niger Delta states is what has led to Bayelsa being declared bankrupt. If the revenue derived from this land or the taxes that are paid belong to Bayelsa, we should be one of the richest states in Nigeria. The true practice of federalism is that the states pay taxes to the centre. Unfortunately, ours is turned upside down. We have a lopsided federal system of government.”