By HEADLINENEWS.NEWS correspondent
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.
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, inoder 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.
