• Monday, May 27, 2024
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Lagos earns N3.9bn from 13% oil derivation

Lagos earns N3.9bn from 13% oil derivation

…as OML 113 ceases operations

Starting from its status as an oil-producing state, Lagos, Nigeria’s largest economy state by GDP, earned N3.911 billion between 2018 and 2021 from the statutory 13 percent derivation.

However, the state’s stream of revenue from the oil derivation has been stalled, as Yinka Folawiyo Petroleum Company Limited (YFP), a wholly indigenous firm and operator of the OML 113 offshore field in Badagry; from where Lagos derives its oil-producing status has ceased further explorations due to challenges yet to be resolved.

“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 state government also received N3.78 billion,” Biodun Ogunleye, Lagos commissioner for energy and mineral resources, told journalists on Wednesday.

Ogunleye spoke further: “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.”

At a ministerial briefing on Wednesday, to mark the second term in office of Governor Babajide Sanwo-Olu’s administration, the commissioner also said that the state executive council has approved the procurement of 20,000 units of prepaid energy meters for targeted low-income communities to bridge the metering gap.

“Approval was further expanded to utilise 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.

He also disclosed plans by the government to strictly enforce regulations on the sales of liquefied petroleum gas otherwise known as cooking gas to stem the increasing cases explosion and attendant loss of lives in the state.