April 06, (THEWILL) — A high-stakes financial scandal has erupted within the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) over allegations that Akwa Ibom State was paid over ₦33.7b in derivation payments from oil produced in the Gulf of Guinea—funds that may never have been credited to the Federation Account.
The controversy has sparked urgent calls for presidential intervention and systemic reforms in Nigeria’s revenue allocation framework.
THEWILL reports that the dispute centers on the Ekanga/Zafiro oil field, a transboundary hydrocarbon deposit straddling Nigeria and Equatorial Guinea.
Disputes have centered on ownership, production entitlement, and derivation payments for over a decade.
According to checks and data seen by THEWILL, the Nigerian portion of the field lies beyond the 200-metre isobath, a legally recognized boundary that determines eligibility for derivation payments. Proceeds from the field are constitutionally due to the federation account— not to an individual state.
Akwa Ibom State had in October 2010, formally notified the RMAFC that the Ekanga/Zafiro oil field lies within its 200-metre isobath, thereby claiming entitlement to the constitutionally mandated 13 percent derivation revenue.
Following the claim, the Commission engaged relevant agencies, including the Nigerian National Petroleum Corporation (NNPC), the National Boundary Commission (NBC), and the then Department of Petroleum Resources (DPR)—requesting verification of production data and revenue remittances.
NNPC reportedly stated that the Republic of Equatorial Guinea lifted Nigeria’s share of crude oil from the field and that proceeds were remitted into the Federation Account. This assertion, if factual, could have been verified through the CBN accounts and the OAGF records. However, the RMAFC did not verify this, as there are no formal requests to the CBN, Ministry of Finance or Accountant General to show documented evidence of the payments, according to findings.
Despite this, RMAFC allegedly approved two major disbursements to Akwa Ibom (₦15.77b between 2014 and 2015) without verifiable evidence that corresponding oil revenues had been received into the Federation Account.
The payments drew immediate protests from other oil-producing states, including Rivers, Bayelsa, Delta, and Ondo, which challenged the legitimacy of the disbursements.
These states argued that no corresponding revenues from the Ekanga/Zafiro field had been credited to the Federation Account, effectively making the derivation payments unfounded.
Following petitions and sustained pressure, RMAFC reportedly approved refunds to the aggrieved states from the Federation Account.
However, Akwa Ibom State retained the initial ₦15.77 billion payment—a development that has continued to generate debate among fiscal experts and policymakers.
The controversy resurfaced in 2023 after Dr. Mohammed Bello Shehu’s elevation to Chairman of the agency from his previous position as Secretary, when Akwa Ibom State reportedly submitted fresh claims indicating additional production from the Ekanga/Zafiro field.
This led to further financial approvals, said to be in the region of ₦18 billion, again raising concerns about the absence of rigorous verification processes.
Sources familiar with the matter alleged that documentation supporting these approvals is either incomplete or missing, further complicating efforts to establish a clear audit trail.
Records from the Central Bank of Nigeria, the Office of the Accountant-General of the Federation, the Ministry of Finance, and independent NEITI audits showed no traceable inflows linked to the field.
It raised concerns that this may violate Section 162(2) of the 1999 Constitution, the Allocation of Revenue (Federation Account) Act, and international maritime law under the United Nations Convention on the Law of the Sea (UNCLOS).
Allegations of fraud, misappropriation, and opaqueness have trailed Crude oil production and revenue accruals in the country causing billions of dollars in lost revenue to the federation leading to calls for urgent reforms.
Following the controversy over the Ekanga/Zafiro field, stakeholders in the sector have urged President Bola Tinubu to act decisively by constituting a Presidential Technical Committee to conduct a full audit of the Ekanga/Zafiro field, verify production and revenue records, determine the legal status of the field, suspend all pending payments, and carry out a forensic audit of RMAFC records.
Multiple attempts to reach RMAFC Chairman, Dr. Shehu were unsuccessful as of the time of writing this report.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
