Oil wells- Akwa Ibom to refund N 10.9bn to Rivers state

Akwa Ibom State is to refund N10.91bn revenue collected on the 86 controversial oil wells to neighbouring Rivers State, an interagency committee set up by the Revenue Mobilisation Allocation and Fiscal Commission has said.


The Chairman of the committee, Mr. Abdullahi Maiuguwa, said during the presentation of the committee’s report in Abuja, on Thursday, that the interest to be paid on the money had not been determined.

Maiuguwa said, “The computation of the amount due to Rivers State covered a period from April 2009 to April 2011, and the committee found that the Akwa Ibom State Government would make a refund of the sum of N10.91bn to Rivers State. This amount is exclusive of the prevailing commercial interest rate to be charged as the committee is still awaiting the rate to be charged from the Central Bank of Nigeria.

“This will be given to Rivers State as soon as it is received. The committee has recommended that the refund should be made in instalments so as to reduce the effect of budget disruption and other concomitant consequences on Akwa Ibom.”

The RMAFC had set up the committee on April 13, following the ruling of the Supreme Court awarding the 86 disputed oil wells to Rivers State and asking Akwa Ibom State, which had hitherto collected derivative revenue on the wells, to refund Rivers.

Membership of the committee was drawn from the Office of the Attorney-General of the Federation, Office of the Accountant-General of the Federation, the CBN, National Boundary Commission, Department of Petroleum Resources, Office of the Surveyor-General of the Federation and RMAFC.

The interagency committee had the responsibility of determining the actual number of wells involved in the dispute, the amount of money earned by Akwa Ibom on the wells, the interest to be paid as well as the modalities for returning the money to Rivers.

Governor Rotimi Amaechi of Rivers State had gone to court to challenge the repossession of the disputed oil wells by Akwa Ibom State despite an agreement signed between former governors Victor Attah and Peter Odili ceding the oil wells to Rivers State.

The Supreme Court ruled that the political solution, which was brokered by former President Olusegun Obasanjo, remained valid as it was committed to writing.

The court ordered Akwa Ibom State to repay the money it got from the oil wells since 2007 and to also pay the prevailing interest.

As a result of the ruling, the RMAFC had to set up a committee to work out the details of how to implement the ruling.

Answering questions from newsmen on the next step to be taken, the Chairman, RMAFC, Mr. Elias Mbam, said the revenue agency would hold a plenary session to discuss the report of the committee.

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