The Lagos state government on Wednesday disclosed that it has benefited the sum of N3.911billion from the federal government as an oil producing state, saying production 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 N3.911billion 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 state’s Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye, explained this during a ministerial press briefing to mark the second term in office of Governor 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 and 2019, the state government received from the federal Government N131 million as part of oil derivation. And, between 2020 and 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.”
