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FG set to pay derivation as Lagos formally becomes oil producing state

By Olaolu Oladipo, Lagos

The Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed the verification of oil and gas production from Aje oil wells in Lagos State was for the purpose of disbursement of the 13 per cent Derivation Fund to the state.

Speaking when he met with Governor Akinwunmi Ambode in his office on Wednesday, Mohammed said the commission had set-up an Inter-Agency technical Committee to determine the location of the Aje oil wells.

Mohammed said that the Technical Committee recommended that for the purpose of the Derivation Fund as spelt out in the 1999 Constitution as well as the provision of the Allocation of Revenue Act Aje Oil Wells fall within 200m isobaths and therefore should be attributed to Lagos State.

He said as a result, the Commission and members of the Inter-Agency Committee had to embark on the working visit to the wells to conclude the process.

He added that the outcome of the visit would promote national unity as well as the socio-economic development of Lagos State and Nigeria.

“It is also important to state that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited is the first time oil is being produced outside the Niger Delta basin and therefore of a significance in diversifying the source of crude and gas production in the country,” Mohammed said.

Responding, Ambode has s said the commencement of crude oil production in the State would in no small measure enhance the economy of not just the State but the nation in general.

The governor said that it was significant for the Nigeria economy that the state has emerged as the first oil producing state outside the Niger Delta basin.

He described the visit as remarkable in the annals of the history of Lagos, adding that it signals the official step that takes the State to the final destination that makes us to become an oil producing state.

“We are very glad to receive this delegation. We also want to thank the Federal Government, most especially President Muhammadu Buhari for making this to happen very promptly. I want to say that this has been the quickest action that has been taken by RMAFC since I have known the Commission.

“I used to be a former Account General so I had a lot of transactions and relationship with the institution called RMAFC. Within a span of about 60 days of when we wrote our letter, and even before we wrote the letter, this technical committee was set up. It gladdens me to say that the institution works and is working for the good of Nigeria,” the Governor said.

Governor Ambode also commended the members of the Department of Petroleum Resources (DPR) and the Boundary Commission, saying that both have contributed immensely to the process of the discovery and production of crude oil in Lagos.

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