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THE recent ruling on the suit filed by the Cross River State Government challenging the decision to reallocate 76 oil wells allegedly from Cross River State to its neighbour, Akwa Ibom State by the Supreme Court effectively brought an end to the controversy between the two states on the ownership of the oil wells. In its ruling, the Supreme Court in a unanimous decision sided with the transfer of the oil wells to Akwa Ibom State. The decision effectively removed Cross River State as an oil producing state.
THE 76 oil wells were transferred to Akwa Ibom State from Cross River State following the adjustment of the boundary between the two states by the National Boundary Commission (NBC). It was in the aftermath of the boundary adjustment that the Revenue Mobilisation and Fiscal Commission (RMAFC) in 2008 declassified Cross River State as a littoral state. Cross River State felt aggrieved and approached the Supreme Court for relief.
THE ruling by the Supreme Court has significant impacts on the two states. In the case of Akwa Ibom, it will sustain her ranking as one of the top 3 richest states in the country as she will continue to benefit from the 13 per cent derivation from the 76 oil wells. However, on the flip side, Cross River is effectively delisted as an oil producing state. The loss of the oil producing status will no doubt reduce the state’s share from the Federation Account, implying a significant loss of revenue needed to prosecute development projects in the state.
IN its judgement, the Supreme Court observed that Cross River had become a land-locked state by the virtue of the judgement of the International Court of Justice which ceded Bakassi Peninsula to Cameroon. It added that there is nowhere in the world where a land-locked state could be a littoral state.
IT is very clear from the judgement that the Cross River state is suffering from the consequence of the decision to cede Bakassi Peninsula from Nigeria to Cameroon. The transfer of Bakassi Peninsula to Cameroon has had a lot of consequences on the state and Nigerians who were formally living in the area ceded to Cameroon. Some of these people who had relocated to Cross River state have now become a responsibility of the state government at a time when a major source of revenue for the state has also been withdrawn. This implies more responsibility but less fiscal capacity to meet the responsibility. It is therefore our considered opinion that the Federal Government must find a way to compensate the state.
WE are pleased that the Akwa Ibom State Governor, Godswill Akpabio has opened the door for a political settlement as he indicated his openness to discussion on the issue of the 76 oil wells and the broader issue of boundary line between the two states. This is a positive development. We advise the government of Cross River State to embrace this olive branch and sheath its sword.
WE commend the maturity of the Cross River State in seeking a legal option to resolving the controversy, instead of a recourse to self-help and violence which had led to needless loss of lives in many parts of the country with border disputes. The Cross River State example should be recommended to such other states. Until the creation of Akwa Ibom State in 1987, both states were one and the peoples of the two states were very much integrated. We appeal that the spirit of give and take and brotherliness should be maintained. The Federal Government and well meaning Nigerians should find ways to mediate between the two states and work out amicable settlement between them after the legal option had been exhausted. That is the only way that real peace can be maintained between the two neighbours. After 25 years, the two sister states should not allow any separation.
Source: Tribune
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