Lagos gets N3.9bn oil derivation fund

By Adeola Ogunrinde
Lagos State government on Wednesday disclosed that the sum of N3.911bn was realized since it became an oil producing state, saying the production has been hampered due to challenges faced by the company managing its exploration.
Lagos joined the league of oil-producing states in the country in 2016.

The State government said it received a total of N3.911bn as its share of the 13 per cent derivation fund.
Oil-producing states are entitled to 13 per cent derivation fund from the Federation Account. Others are Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers
The Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye explained this during a ministerial press briefing to mark the second term in office of the State Governor, Mr Babajide Sanwo-Olu at Alausa, Ikeja.
It would be recalled that Yinka Folawiyo Petroleum Company Limited (YFP), a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, commenced the production of crude oil from the field.
Ogunleye said, “Between 2018-2019, the state government received from the federal Government N131 million as part of oil derivation. And, between 2020-2021, the Lagos state government received N3.78 billion.
“But the owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos.
“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production.”
Dwelling on the community electrification programme , the commissioner said the governor has approved the procurement of twenty thousand units of prepaid energy metres for target low income communities in the state.
‘’Approval was further expanded to utilize funding to catalyse full metering across the state via collaborations with electricity Distribution Companies in Lagos and a leading smart metering solution company , ElSewedy Electric.
The commissioner, who frowned at the increasing death rate from gas explosions in the state , hinted that the state government will soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors in the state.

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