The Lagos State government disclosed on Wednesday that it has realised a total of N3.911 billion since becoming an oil-producing state, as its share of the 13 per cent derivation fund. However, the production has been hampered due to challenges faced by the company managing its exploration.
It should be noted that in 2016, Lagos joined the league of oil-producing states in the country, including Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
Mr. Biodun Ogunleye, the State Commissioner for Energy and Mineral Resources, made this known on Wednesday during the ministerial press briefing to mark the second term in office of Governor Babajide Sanwo-Olu, which took place at Alausa, Ikeja.
He stated that the state government is engaging with the affected company to ensure that it returns to the field. He expressed the belief that before the end of the year, the company would find new technical partners and resume production.
It is worth noting that Yinka Folawiyo Petroleum Company Limited (YFP), a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, commenced the production of crude oil from the field.
“Between 2018 and 2019, the state government received N131 million from the Federal Government as part of oil derivation. Between 2020 and 2021, the Lagos State Government received N3.78 billion.
“However, the owners of the assets have been having issues among themselves. As long as they could not produce, there would be no money for Lagos.
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“The state government is engaging them to ensure that they return to the field. We hope that before the end of the year, they will find new technical partners and resume production,” he said.
Regarding the community electrification program, the commissioner said Governor Sanwo-Olu had approved the procurement of 20,000 units of prepaid energy meters for targeted low-income communities in the state.
“The approval was further expanded to utilize funding to catalyze full metering across the state via collaborations with electricity Distribution Companies in Lagos and a leading smart metering solution company, ElSewedy Electric,” the commissioner said.
The commissioner, who frowned at the increasing death rate from gas explosions in the state, hinted that the state government would soon introduce stringent measures to regulate the operation of Liquefied Natural Gas (LNG) vendors in the state.
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