Three oil-producing states of the Niger Delta on Wednesday, got a landmark judgment at the Supreme Court of Nigeria that would substantially boost their revenue from oil production with effect from the date of the judgement.
Crude Oil
The verdict was handed down by the Supreme Court yesterday.
The three states: Rivers, Bayelsa and Akwa-Ibom, had approached the Supreme Court for the interpretation of Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contract Act in suit number SC964/2016 filed on their behalf by their lead Counsel, Mr. Lucius Nwosu, ,SAN.
The particular section required the Federal Government to adjust the shares of the revenue accruable to the Federation whenever the price of crude oil exceeds 20 Dollars per barrel.
The judgment delivered by Justice John Okoro mandated the federal government to embark on an upward adjustment of the shares of revenues accruing to the government whenever the price of crude oil exceeds $20 per barrel.
The Governor of Bayelsa State, Mr. Henry Seriake Dickson, celebrated the verdict, which he described as a victory for the littoral states and indeed Nigeria.
Dickson said this in a statement by his Adviser on Media Relations, Mr. Fidelis Soriwei.
According to him, even before the first offshore swamp oil well was discovered under the particular Act by the Nigeria AGIP Energy, the price of crude oil had exceeded $20 per barrel being used as a benchmark to share oil revenues in the state.
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