Cross River Set for Oil-Producing Status as FG Committee Submits Report to RMAFC

Cross River State may soon regain its status as an oil-producing state following the submission of a technical verification report by a Federal Government Inter-Agency Committee to the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).

The development has generated widespread public discussion, particularly among stakeholders in Cross River and neighbouring Akwa Ibom State, as analysts weigh the economic and political implications of the proposed reclassification

Akahi News gathered that the report forms part of a nationwide verification exercise aimed at scientifically determining the precise locations of crude oil and gas assets within Nigeria’s onshore and offshore boundaries.

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Inside the Inter-Agency Verification Exercise

According to officials familiar with the process, the committee comprised representatives from key federal institutions, including the National Boundary Commission, the Office of the Surveyor-General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission, and relevant security agencies.

The exercise reportedly involved extensive field verification, hydrographic validation, and technical reconciliation of coordinates across several oil-producing states. Sources described the process as rigorous and data-driven, emphasising that the outcome was based on geological and technical evidence rather than political considerations.

Observers note that the verification exercise could significantly influence revenue attribution and reshape aspects of Nigeria’s fiscal federalism framework.

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Implications for Cross River and Akwa Ibom

Cross River lost its oil-producing status in 2008 following legal and boundary disputes linked to offshore oil wells and the Bakassi Peninsula issue. A subsequent Supreme Court judgment in 2012 affirmed the attribution of 76 oil wells to Akwa Ibom State.

However, the latest technical findings reportedly suggest that Cross River may qualify for re-listing based on newly verified coordinates, particularly within Oil Mining Lease (OML) 114 located in its maritime territory.

Akahi News learnt that the oil wells affected by the Supreme Court decision are expected to remain unchanged pending further legal interpretation. Analysts explain that the current development relates mainly to newly verified wells rather than a reversal of earlier judicial rulings.

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Fiscal Federalism and Revenue Expectations

Under Nigeria’s revenue allocation formula, oil-producing states are entitled to a 13 percent derivation fund based on oil and gas production within their territories.

Public reactions have reflected the economic importance of this classification, with many stakeholders describing the development as a potential economic boost for Cross River State. Others, however, have urged caution, noting that oil revenue alone does not guarantee development without strong governance and transparency.

Experts point out that Nigeria’s experience shows that sustainable development depends largely on prudent management of resources and accountability in public spending.

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Awaiting Presidential Approval

Implementation of the committee’s recommendations is expected to proceed after presidential approval. Once granted, the RMAFC Board of Commissioners is expected to meet and approve the operational framework required to update Nigeria’s official list of oil-producing states.

Policy analysts believe the decision could carry broader political and economic implications, particularly in regions where oil well attribution has historically generated tension.

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Legal and Historical Context

The development has also revived conversations around historical boundary disputes and maritime delineation, though legal experts emphasise that oil well attribution ultimately rests on verifiable geological evidence and constitutional procedures.

Akahi News gathered that federal authorities are presenting the verification exercise as a scientific reconciliation of oil and gas coordinates rather than a political adjustment.

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If approved, Cross River’s return to the list of oil-producing states could represent a significant shift in Nigeria’s revenue allocation structure.

However, observers maintain that the real impact will depend on how potential new revenues are utilised to improve infrastructure, social services, and economic opportunities for residents.

As stakeholders await final approval, the development highlights once again the complex relationship between natural resources, law, and economic justice within Nigeria’s federal system.

Akahi News www.akahinews.org