Lagos geared to receive fund as oil-producing state

- Lagos is set to benefit from its recognition as an oil producing state

- The state will receive its 13 per cent derivation which is giving to oil states

- Governor Akinwunmi Abbode said it will soon be the oil and gas hub of the nation

Lagos state is expected to become richer than it is as it gets its first 13 per cent oil derivation fund from the federal government in December.

The Punch reports that this was disclosed by Governor Akinwunmi Ambode at the annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists on Tuesday, November 15.

Lagos was officially declared an oil-producing state when Yinka Folawiyo Petroleum Company Limited commenced crude oil production on the Aje field.

Governor Akinwunmi Ambode

The fund Lagos will be receiving is in accordance to the entitlement of oil-producing state as they receive 13 per cent derivation from the federation account.

Mr. Wale Olowu who represented the governor at the event said after the state’s exportation of oil, it will receive its due in December.

“I am pleased to announce that the first export from the Aje oil field has happened. That is not the big deal; the big deal is that Lagos State is anxiously awaiting its first derivation in December. So, in December, we will be collecting our first derivation.

“We cannot wait to see a lot of oil and gas come under the soil of Lagos because it will help us in the area of employment; it will help us in the area of electricity generation, which we want to do off-grid anyway, and it will also help us in making sure that our revenue continues to be diversified.”

The governor said there was plan to make the state the oil and gas hub of the nation.

“We reassure all of you stakeholders in the industry of our commitment to provide a safe and secure environment for exploration activities that is consistent with global best practice.”

The state was also closely monitoring and “getting ready to massively support other Oil Prospecting Licences in Lagos to make sure they can quickly transform to Oil Mining Leases”.

“We also want the development of the oil and gas industry in Lagos. We didn’t plan it originally. But now that we are seeing the evolution, we are doing everything possible to bring them together because on our west coast, we have found oil.

“On the east coast, we already have Dangote refinery that is the largest in Africa and one of the largest in the world, and then in our centrals, we have the banks that can finance, the oil tank farms and then we have the seaport for export.”

This new income for Lagos is expected to make the state richer as its internally-generated revenue is more than 32 Nigerian state combined and it's 150 per cent higher than its federal allocation