Rivers State, Akwa Ibom State and Bayelsa State state instituted an action with suit number SC.964/2016 against the Federal Government at the Supreme Court in 2016. The basis for the institution of the action was for the court to interpret the provisions of Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

The section reads-“(1) The provisions of this Act shall be subject to review to ensure that if the price of crude oil at any time exceeds $20 per barrel, real terms, the share of the government of the Federation in the additional revenue shall be adjusted under the production sharing contracts to such extent that the production sharing contracts shall be economically beneficial to the government of the Federation.”

The foregoing provision requires that there should be an upward review of the share of the Federal Government of Nigeria anytime the price of crude oil rises above 20 dollars per barrel. However, the Federal Government hasn’t taken advantage of the earlier quoted provision of the law that has been in place since 1999. The standard that is being used by oil companies to date is still 20 dollars per barrel. The states alleged that between 2003 and 2015 the Federal Government lost an estimated sum of $1, 149,750,000,000 due to failure to do an upward review of the sharing formula.

They argued that the Production Sharing Contracts between the Federal Government and the International Oil Companies which fixed the present mode of sharing profit is no longer valid as the price of oil per barrel is no longer at $20. Therefore, there must be an upward review in line with Section 16(1).

The suit filed by the three states prayed the court to determine whether there is a statutory obligation imposed on the Federal Government under Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act to adjust the share of the Federal Government since oil price per barrel now exceeds $20. The states further sought an order of court declaring the failure of the federal government to increase its share as a breach of the law.

The parties to the matter came to an agreement and filed terms of settlement on April 6, 2018. The terms of settlement filed by parties was adopted by the Supreme Court as its judgement in the matter. The said terms of settlement was signed by the Attorney Generals of the three states and the lead counsel for the Attorney General of the Federation (AGF).

The content of the terms of settlement indicates that the AGF is to set up the mechanism for the recovery of the shares of the federal government within 90 days. The said recovery is to be from August 2003. In doing this, the AGF is to work with the three states as the solicitors of the three states or their nominated professional advisers are to be members of the recovery body.

Therefore, the terms of settlement has taken care of the prayers (a) to (c) of the three states. The prayers are reproduced below-

(a). “a declaration that there is a statutory obligation imposed on the defendant (the AGF/FG) pursuant to Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act, Cap D3 Laws of the Federation of Nigeria 2004, to adjust the share of the Government of the Federation in the additional revenue accruing under the Production Sharing Contracts if the price of crude oil at any time exceeds twenty dollars ($20) per barrel in real terms to such extent that the Production Sharing Contracts shall be economically beneficial to the government of the Federation; and a fortiori the component Federating States of the Federal Republic of Nigeria especially the 1st, 2nd and 3rd plaintiffs.”

b) “that the failure of the defendant (Federal Government) to accordingly adjust the share of the Government of the Federation in the additional revenue in the Production Sharing Contracts…” constitutes “a breach of the said Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act”

c) “ order compelling the defendant to adjust the share of the Government of the Federation in the additional revenue under all the PSC in Nigeria’s oil industry within the I :onland Basin and Deep Offshore areas as approved by the defendant from the respective times the price of crude oil exceeded twenty dollars ($20) per barrel in real terms and to calculate in arrears with effect from August 2003 and recover and pay immediately all outstanding statutory allocations due and payable to the plaintiffs arising from the said adjustments.”

Source: https://www.businessdayonline.com/news/article/270146/

This is victory for the common man

The states alleged that between 2003 and 2015 the Federal Government lost an estimated sum of $1, 149,750,000,000 due to failure to do an upward review of the sharing formula.

What a idiotic administrations Nigeria had. They literally left left tax revenue on the table. This great for coastal states since they derive the most benefit from this judgement. The other states will benefit to if they press the issue like these 3 states did. Im not sure its even profitable to do offshore drilling below $20 per barrel.

Hmmmm, more money for them

Blue3k:


What a idiotic administrations Nigeria had. They literally left left tax revenue on the table. This great for coastal states since they derive the most benefit from this judgement. The other states will benefit to if they press theissue like these 3 states did. Im not sure its even profitable to do offshore drilling below $20 per barrel.

I doubt they left it on the table. These political thieves are greedy crooks, but don't dare think they are stupid!

Sounds to me like they just didn't share it with the states.

Ok

budaatum:

I doubt they left it on the table. These political thieves are greedy crooks, but don't dare think they are stupid!

Sounds to me like they just didn't share it with the states.

Blue3k has transformed into a propagandist.

Are they exactly implying that the FG left $1t on the table or is that a typo? It is one thing to decide you want an upward review, it is a whole other thing to agree to an upward review and actually recover it. To this day, billions of dollars of undeclared crude are exported annually from this country.

Madueke complained about it and set the mechanisms in place to study it comprehensively. In 2016, a case was filed based on the report. Till date, nothing more has been heard. That's for over $12b in undeclared crude.

This one is just auditioning for the media. Little or nothing will come of it as it will be abandoned for the next shiny allegation. The more important question is that has the said sharing formula being reviewed upward for 2016, 2017, and 2018? If no, why?

-Lord

LordAdam16:


Blue3k has transformed into a propagandist.

The parties to the matter came to an agreement and filed terms of settlement on April 6, 2018. The terms of settlement filed by parties was adopted by the Supreme Court as its judgement in the matter.

Lol because I dared criticize past administrations. What period did this blunder happen under and when did agreement take place? You PDP NPCs are funny bunch.

LordAdam16:


Blue3k has transformed into a propagandist.

stop smoking that nonsense.
To your disappointment it is true.

4kDdullard:
stop smoking that nonsense.
To your disappointment it is true.

You could also find vanguard reporting the same thing. Maybe he didnt read article,understand timeline or this just programed response.

Blue3k:




Lol because I dared criticize past administrations. What period did this blunder happen under and when did agreement take place? You PDP NPCs are funny bunch.

Itchy fingers much. Read my post again.

That's how you bunch were saying PDP was sitting on the PIB. It's been 3 years, the bill is still in hibernation.

This case was filed by three PDP state governments in 2016 against the APC FG. The APC FG argued against the case since 2016 until now (two whole years). Now that the APC FG has lost, you're making it sound like this is an APC initiative. I don't know why every little thing has to be politicized.

The AGs of all the FG administrations, regardless of party, from 2003 till date interpreted the Act differently. The states in question didn't agree with their interpretation and the SCo sided with the states. How does that make the past administrations "idiotic"?

Was it not a past administration that set the rule in question in 1999? Or why did this present administration waste valuable time arguing against the case in the Supreme Court if they weren't "idiotic" as well? Are you thinking correctly or do you type faster than you think?

-Lord

LordAdam16:


Itchy fingers much. Read my post again.

That's how you bunch were saying PDP was sitting on the PIB. It's been 3 years, the bill is still in hibernation.

This case was filed by three PDP state governments in 2016 against the APC FG. The APC FG argued against the case since 2016 until now (two whole years). Now that the APC FG has lost, you're making it sound like this is an APC initiative. I don't know why every little thing has to be politicized.

The AGs of all the FG administrations, regardless of party, from 2003 till date interpreted the Act differently. The states in question didn't agree with their interpretation and the SCo sided with the states. How does that make the past administrations "idiotic"?

Was it not a past administration that set the rule in question in 1999? Or why did this present administration waste valuable time arguing against the case in the Supreme Court if they weren't "idiotic" as well? Are you thinking correctly or do you type faster than you think?

-Lord

Lol you shouting propaganda when the clearly none. Then going start whine about unrealated matter in post like that had anything to do with agreement. Even the last questioned you asked shows you didnt read before rushing to type propaganda to the report. All the articles discussing trial say the states said the federal government lost out on revenue.

The PDP FEderal government didnt do any review for over a decade and you want to absolve them somehow. Lol why wuldnt the ststes greatly affected by they're laziness not be the ones running to court. APC can get credit since they eventually settled on something agreeable its simple.

Its makes them idiotic since its clear by the way its written. It has to be beneficial to federation. Why would you keep allocation revenue static? They set rule and didnt follow it since they interpreted to who knows. They were idiotic but they eventually acted in correct manner. The others we cant say same. Lol mr NPC wheres the propaganda did the media lie about agreement or what?

Blue3k:
[s]


Lol you shouting propaganda when the clearly none. Then going start whine about unrealated matter in post like that had anything to do with agreement. Even the last questioned you asked shows you didnt read before rushing to type propaganda to the report. All the articles discussing trial say the states said the federal government lost out on revenue.

The PDP FEderal government didnt do any review for over a decade and you want to absolve them somehow. Lol why wuldnt the ststes greatly affected by they're laziness not be the ones running to court. APC can get credit since they eventually settled on something agreeable its simple.

Its makes them idiotic since its clear by the way its written. It has to be beneficial to federation. Why would you keep allocation revenue static? They set rule and didnt follow it since they interpreted to who knows. They were idiotic but they eventually acted in correct manner. The others we cant say same. Lol mr NPC wheres the propaganda did the media lie about agreement or what?[/s]

Complete irrelevant trash. I asked a very simple question.

Why did the APC FG argue against the case for two years in the Supreme Court?

-Lord

LordAdam16:


Complete irrelevant trash. I asked a very simple question.

Why did the APC FG argue against the case for two years in the Supreme Court?

-Lord

You you asked a bunch of questions and made a bunch of arguements that need to be debunked. The APC government didnt respond to the suit all of till late 2017. They settled in April 2018 correcting past mistakes. They deserve credit for in my opinion.

The Federal Government has yet to respond to the suit, but Gazali told journalists after proceedings on Thursday that the AGF would consult with the relevant agencies and ministries of the Federal Government “to take a stand in the case”.

The seven-man panel led, by Justice Olabode Rhodes-Vivour, fixed November 24 for hearing.
Source

Why did the PDP leave lose out on over a 15 years of revenue like the states said? Second question what part of article is propaganda?

Blue3k:


You you asked a bunch of questions and made a bunch of arguements that need to be debunked. The APC government didnt respond to the suit all of till late 2017. They settled in April 2018 correcting past mistakes. They deserve credit for in my opinion.



Why did the PDP leave lose out on over a 15 years of revenue like the states said? Second question what part of article is propaganda?

First off, by typical government protocol the states would have written the FG in an official capacity. Which failure to respond would have led to this suit.

The APC FG didn't respond to that correspondence. Then when the suit was filed by PDP states, they let 1 year go to waste (which is way worse than arguing the case but technically still counts as arguing the case. If you receive a summon today and don't go to court until 3 months time, you've had the case against you and argued it for 3 months. You don't get to cherry pick the dates). Both are clear signs of "idiocy."

The bottom line is that the APC FG did not initiate the review. In fact they wasted the past two years rigmaroling and ignored correspondence from PDP states to that effect until the case was taken to court.

That is a glaring sign of idiocy that you've conveniently ignored because this was simply meant to be a propaganda piece. I could staple this to your forehead and you still wouldn't see it because you're a propagandist now.

-Lord

[s]

LordAdam16:


First off, by typical government protocol the states would have written the FG in an official capacity. Which failure to respond would have led to this suit.

The APC FG didn't respond to that correspondence. Then when the suit was filed by PDP states, they let 1 year go to waste (which is way worse than arguing the case). Both are clear signs of "idiocy."

The bottom line is that the APC FG did not initiate the review. In fact they wasted the past two years rigmaroling and ignored correspondence from PDP states to that effect until the case was taken to court.

That is a glaring sign of idiocy that you've conveniently ignored because this was simply meant to be a propaganda piece. I could staple this to your forehead and you still wouldn't see it because you're a propagandist now.

-Lord

[/s]

You wrote a bunch of paragraphs to say what? You still couldn't answer why PDP federal government didnt review the law 15 years after I directly asked why. Your crying over 2 years they used to solve issue. Its funny how that logic works out. The other previous administrations didnt do anything to review the issue leaving money on table like I said in beginning no disputing that fact. (Its the arguement of the 3 states)

There's no propaganda you simply crying ovet nothing. Who knows what sort of paranoia came over you. The news reads the same from everyone who reported it. The states sued, FG and states make deal then the courts made ruling based on deal.

Blue3k:
[s]

You wrote a bunch of paragraphs to say what? You still couldnt answer why PDP federal government didnt review the law 15 years after directly asking why. Yet your crying over 2 years the used to solve issue. Its funny how that logic works out. The other previous administrations didnt do anything to review the issue leaving money on table like I said in beginning no disputing that fact. (Its the arguement of the 3 states)

There's no propaganda you simply crying ovet nothing. Who knows what sort of paranoia came over you. The news reads the same from everyone who reported it. The states sued, FG came to deal the courts made rules based on deal. [/s]

Rivers State, Akwa Ibom State and Bayelsa State state instituted an action with suit number SC.964/2016 against the Federal Government at the Supreme Court in 2016. The basis for the institution of the action was for the court to interpret the provisions of Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

Read that paragraph of the same article you gleefully shared. Very carefully this time. It is all a matter of interpretation. And don't restrict it to the PDP FG of 2003 to 2015. Because the APC FG of 2015 to date has not "reviewed" it either. The PSC contracts will expire in 2023 and will have to be renegotiated.

This is the umpteenth time I'm repeating this. The AGs of all successive FG administrations did not interpret that provision to mean calling for a review. So don't demarcate it. Especially when the APC FG had to be sued by PDP states before they changed their stance. The Deep Offshore and Inland Basin Production Sharing Contracts Act that they're quoting from was prepared in 1993. It was one of the so-called "idiotic" PDP FG that enacted it in 1999. Did you give them credit for that.

If no, then why are you giving APC FG government credit for fighting a case for 2 years before getting to a settlement? Are you feeling okay this morning?

This is what it means to be a propagandist. You begin to reason illogically.

-Lord

LordAdam16:


First off, by typical government protocol the states would have written the FG in an official capacity. Which failure to respond would have led to this suit.

The APC FG didn't respond to that correspondence. Then when the suit was filed by PDP states, they let 1 year go to waste (which is way worse than arguing the case but technically still counts as arguing the case. If you receive a summon today and don't go to court until 3 months time, you've had the case against you and argued it for 3 months. You don't get to cherry pick the dates). Both are clear signs of "idiocy."

The bottom line is that the APC FG did not initiate the review. In fact they wasted the past two years rigmaroling and ignored correspondence from PDP states to that effect until the case was taken to court.

That is a glaring sign of idiocy that you've conveniently ignored because this was simply meant to be a propaganda piece. I could staple this to your forehead and you still wouldn't see it because you're a propagandist now.

-Lord

Too much speculations and partisanship in your argument. Don't assume you know all that surrounds the case.

A number of times a few individuals will be settled so the IOCs can continue to cheat the country of operations

This judgement actually increases revenue for the whole country if implemented

As usual Delta State sleeps with the fishes.

Na their money na.

[s]

LordAdam16:




Read that paragraph of the same article you gleefully shared. Very carefully this time. It is all a matter of interpretation. And don't restrict it to the PDP FG of 2003 to 2015. Because the APC FG of 2015 to date has not "reviewed" it either. The PSC contracts will expire in 2023 and will have to be renegotiated.

This is the umpteenth time I'm repeating this. The AGs of all successive FG administrations did not interpret that provision to mean calling for a review. So don't demarcate it. Especially when the APC FG had to be sued by PDP states before they changed their stance. The Deep Offshore and Inland Basin Production Sharing Contracts Act that they're quoting from was prepared in 1993. It was one of the so-called "idiotic" PDP FG that enacted it in 1999. Did you give them credit for that.

If no, then why are you giving APC FG government credit for fighting a case for 2 years before getting to a settlement? Are you feeling okay this morning?

This is what it means to be a propagandist. You begin to reason illogically.

-Lord

[/s]


Your arguement is long winded and silly. You credit credit for passing rules and not enforcing it. All the tax money the left of table is alright then. The fact is they corrected the mistake that's why they get credit. The reason your calling this piece propaganda is it puts your political masters in bad light.

Nothing I said was incorrect. You simply dance around saying the had incorrect intepretstion of the law so its ok the made this blunder. The section meaning was pretty obvious. Paranoia is eating you since you think everyone reporting news is suddenly a propagandist.

Blue3k:


What a idiotic administrations Nigeria had. They literally left left tax revenue on the table.

“(1) The provisions of this Act shall be subject to review to ensure that if the price of crude oil at any time exceeds $20 per barrel, real terms, the share of the government of the Federation in the additional revenue shall be adjusted under the production sharing contracts to such extent that the production sharing contracts shall be economically beneficial to the government of the Federation.”

Blue3k:
[s][/s]


[s]Your arguement is long winded and silly. You credit credit for passing rules and not enforcing it. All the tax money the left of table is alright then. The fact is they corrected the mistake that's why they get credit. The reason your calling this piece propaganda is it puts your political masters in bad light.

Nothing I said was incorrect. You simply dance around saying the had incorrect intepretstion of the law so its ok the made this blunder. The section meaning was pretty obvious. Paranoia is eating you since you think everyone reporting news is suddenly a propagandist. [/s]

Except they haven't even corrected any mistake. They haven't reviewed anything since 2015. They haven't recovered any dollar of the alleged $1t.

There is no logical reason for giving APC FG credit for fighting a case for 2 years, then settling. You're simply doing so because you're a propagandist. There's no difference between you and Lai Mo.

The PDP states that initiated the case, stayed on it while the FG was displaying "idiocy", and forced the FG to settle; I don't see you giving any credit to them. But you're giving credit to the APC FG that danced about for 2 years before settling and have still not reviewed anything since 2015 till date. This is the epitome of zombeism if you don't know.

-Lord

Niger Delta people, Igbos are always happy with news like this. In fact we want you people to take everything and don't share it with anybody. But afonjas as usual will start complaining seen above

TonyeBarcanista:
This is victory for the common man

Please keep quiet. It is a victory for the leaders that'll loot it. None of this extra money will sprinkle to the common man

Congrats to them

Good.

I see

This is nice, but the masses shld not rejoice over this because what they’ve been getting in past is enough to make those in the region live conveniently and suffer not for anything.

This is why this administration is looking for oil by all means in Kastina.....But unfortunately na shaft sand Dem dey discover

Did I just read that Nigeria lost over 1 trillion dollars because of the misinterpretation of this claise? Or is that a typo?