Fact-Checking Claims Regarding Cross River State’s Oil-Producing Status

During a recent All Progressives Congress (APC) rally, Senator Adams Oshiomhole asserted that Cross River State has transitioned into an oil-producing state under the administration of President Bola Ahmed Tinubu. This claim has sparked interest regarding the legal and administrative criteria required for a state to be officially recognized as oil-producing in Nigeria.

Understanding the Criteria for Oil-Producing Status

In Nigeria, the designation of a state as ‘oil-producing’ is not merely a geographic or geological determination but carries significant fiscal implications, particularly concerning the 13 percent derivation fund. According to reports from Premium Times, the criteria for this status are governed by specific legal frameworks and administrative decisions made by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).

Historically, Cross River State lost its status as an oil-producing state following the 2002 Supreme Court judgment that ceded the Bakassi Peninsula to Cameroon. This loss resulted in the state being stripped of its littoral status and, consequently, its access to derivation funds previously enjoyed from offshore oil wells.

The Role of the RMAFC and Federal Recognition

The Premium Times analysis highlights that for a state to be officially recognized as oil-producing, the RMAFC must verify the presence of commercial oil production and approve the state’s inclusion in the derivation revenue sharing formula. While various political figures have advocated for the restoration of Cross River’s status, the process involves rigorous verification of active, revenue-generating oil assets.

Key Points of Contention:

• Legal Precedent: The 2002 Supreme Court ruling remains a central factor in the state’s historical struggle to reclaim its oil-producing designation.
• Administrative Verification: The RMAFC is the sole body empowered to determine which states qualify for the 13 percent derivation fund based on verified production data.
• Political Rhetoric vs. Policy: Statements made at political rallies often reflect policy aspirations rather than confirmed administrative changes in revenue allocation.

Current Status and Available Information

As of the time of reporting, there has been no official announcement from the RMAFC or the federal government confirming that Cross River State has been formally reclassified as an oil-producing state for the purpose of revenue derivation. While the current administration has engaged in various economic policies, the specific administrative shift required to restore this status involves complex legal and technical audits that have not been publicly documented in this context.

Conclusion

The assertion made by Senator Oshiomhole regarding Cross River State’s oil-producing status highlights the ongoing political discourse surrounding the state’s economic standing. However, based on available information, the formal administrative recognition required to trigger the associated fiscal benefits remains unconfirmed by the relevant regulatory authorities. Stakeholders and citizens are encouraged to look toward official releases from the Revenue Mobilization Allocation and Fiscal Commission for definitive updates on the state’s revenue-sharing status.

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p class=”vbna-source-note”>Source: Premium Times Nigeria

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