The Federal Government, through the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has commenced the plotting of geographic coordinates for newly drilled and long-disputed oil and gas fields along state boundaries — a move expected to bring clarity to the contentious distribution of 13 percent derivation revenue.
The exercise, flagged off in Abuja this week, involves fields located along the borders of several oil-producing states, including Edo and Delta, Ondo and Delta, Anambra and Delta, Anambra and Imo, Rivers and Imo, Rivers and Bayelsa, Rivers and Akwa Ibom, and Cross River and Akwa Ibom.
Under Nigeria’s fiscal framework, oil-producing states are entitled to 13 percent of the revenue from crude and gas extracted within their territories. Disputes over the precise location of resources have, in some cases, delayed or complicated revenue allocation among states that jointly claim production rights or where new wells have come on stream.
RMAFC Chairman, Dr Mohammed Shehu, said the coordinates have already been identified and will be plotted over a five-day exercise involving an inter-agency technical committee comprising the National Boundary Commission, the Office of the Surveyor-General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission and RMAFC.
The committee conducted field verification between September and October 2025, visiting offshore, creek and onshore locations to ensure accurate data collection ahead of the plotting phase.
For investors and subnational governments, the outcome of the exercise carries financial significance. Clear determination of oil and gas field ownership could stabilise derivation revenue forecasts, reduce litigation risk and boost confidence in upstream sector governance. Unresolved disputes have in the past stalled allocations and created uncertainty in fiscal planning for affected states.
The exercise underscores the importance of transparent revenue attribution in maintaining investor confidence, especially as Nigeria seeks to ramp up production and attract fresh upstream investments in a competitive global market.
However, experts stress that the final impact will depend on how transparently the coordinates are published and how quickly the findings are integrated into revenue-sharing formulas without fuelling further contestation.
