FG paid Lagos N3.9bn as derivation for being oil producing state – LASG

The Lagos State Government says N3.911 billion was paid to the state by the Federal Government as oil derivation since it became an oil producing state.

The government said the production has 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 N3.911bn 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 in Alausa, Ikeja.

Ogunleye said, “Between 2018-2019, the state government received from the federal Government N131 million as part of oil derivation. And, between 2020-2021, 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.

Dwelling on the community electrification programme, the commissioner said the governor has approved the procurement of twenty thousand units of prepaid energy metres for target 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 and a leading smart metering solution company , ElSewedy Electric,” he said.

The commissioner, who frowned at the increasing death rate from gas explosions in the state, hinted that the state government will soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors in the state.