Lagos Gets N3.9bn Oil Derivation Fund

Lagos State government has realised the sum of N3.911 billion since it became an oil-producing state.
It said oil production in the state had been hampered due to challenges faced by the company managing its exploration.

Lagos, which joined the league of oil-producing states in the country in 2016, said it received a total of N3.911 billion as its share of the 13 percent derivation fund.
Oil-producing states are entitled to 13 percent derivation fund from the Federation Account. Others are Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers

The state’s commissioner for energy and mineral resources, Mr Biodun Ogunleye, explained this yesterday during a ministerial press briefing to mark the second term in office of Governor Babajide Sanwo-Olu, at Alausa, Ikeja.

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.”

On community electrification programme , the commissioner said the governor had approved the procurement of 20,000 units of prepaid energy meters for low income communities .

“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 would soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors.