Facts
The Appellant is an executive body established by the Constitution of the Federal Republic of Nigeria 1999 (as amended) with the mandate to review the revenue allocation formulae and principles in operation, to ensure conformity with changing realities. Thus, on 27th February 2017, the Appellant wrote the Rivers State Government, communicating its decision to update the Appellant’s records and ensure continuous compliance with constitutional provisions on application of 13% Derivation Principle and Allocation of Revenue (Abolition of Dichotomy in Application of Derivation) Act 2004.
The above-mentioned invitation was extended to all littoral states entitled to 13% Derivation from exploration activities in the oil and gas sector of Nigeria. On conclusion of the exercise, the Appellant informed stakeholders of the outcome of the exercise and conveyed its reports to the then Department of Petroleum Resources. The summary of the Appellant’s exercise is that a certain Okoro oil field in OML 112 operated by AMNI International Petroleum, was actually located offshore Akwa Ibom State rather than offshore Rivers State (as was previously reported).
Further to this, Akwa Ibom State, via a cover letter dated 13th March 2019, requested for the refund of derivation revenue from Okoro oil field from July 2008 to September 2018. The Appellant then worked out the derivation in monetary terms for the period and summed the amount to be refunded to Akwa Ibom by the Rivers State Government to be N56,257,481,619.34 (fifty-six billion, two hundred and fifty-seven million, four hundred and eighty-one thousand, six hundred and nineteen Naira, thirty-four Kobo). The Appellant decided that the sum of N502,298,934.03 which had been wrongly paid monthly to Rivers State over 112 months should be reversed. The 2nd Respondent was also informed to implement the refund of the said derivation revenue wrongly paid to the Rivers State Government from July 2008 to September 2018.
