Lagos Realises ₦‎3.9 Billion From Oil Production

….steps up enforcement on operation of LNG dealers over incessant explosions

Lagos State Government has disclosed that the sum of N3.911billion was realized as derivation since it became an oil producing state.

It however, noted that the production has been hampered due to current challenges faced by the company managing its exploration.

Lagos, which was listed into Nigeria’s league of oil-producing states in 2016, received a total of N3.911billion as 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 stated this on Wednesday, during a ministerial press briefing to mark the first year of the second term in office of the State Governor, Mr. Babajide Sanwo-Olu, at Alausa, Ikeja.

Recall that Yinka Folawiyo Petroleum Company Limited,YFP, wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, which commenced the production of crude oil from the Lagos field as oil producing state.

According to Ogunleye, “Between year 2018-2019, the state government received from the Federal Government N131 million as part of oil derivation.

“And, between year 2020-2021, the Lagos state government received N3.78 billion. But the owners of the assets have being having issues among themselves. And as long as they could not produce, there will be no money for Lagos State.

“The state government is engaging them to ensure that they return to the field. And we hope that before the end of this year, they will find new technical partners and they can go back to production.”

Meanwhile, following the incessant gas cylinder explosions with attendant casualties in the state, Oguleye said the state government will soon embark on strict enforcement exercise aimed at ensuring compliance with regulation of the Liquefied Natural Gas vendors in the state.

“We have concluded plans through our enforcement team to embark on strict enforcement of all regulation guiding the operation of LNG among dealers, in the next two weeks, in order to restore sanity as well as further ensure safety of lives and property of citizens.”

Ogunleye, however, assured residents that the Sanwo-Olu led administration will continue to promote and develop sustainable policies for mineral resources to ensure availability of reliable energy to all residents and making the state a 21st century economy.

He also said the state government would continue to move for the alternative to ensure the provision of affordable clean energy for all residents.

Stressing on the community electrification programme, the commissioner said the governor has approved the procurement of 20,000 units of pre-paid energy metres for targeted low-income communities in the state.

“Approval was further expanded to utilize funding to catalyse full metering across the state via collaborations with electricity Distribution Companies in Lagos with a leading smart metering solution company, (names-withheld),” he stated.

Ogunleye said the state government was looking forward to the emergence of a new era of energy governance and regulations that would make clean electricity available for all residents as the new Lagos electricity bill has been passed by the state House of Assembly.

The commissioner also noted that in the last one year the ministry had embarked on stakeholders’ engagements on security of public infrastructure, maintenance of solar hubs in schools, Primary Health Care Centres, community intervention programme, unbundling of Ibile oil and gas, among other initiatives.

Source:- Vanguardngr