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Saturday, June 22, 2024

Lagos Govt. receives over N3bn as oil derivation fund

By Monsurudeen Olowoopejo

The Lagos State Government has disclosed that the sum of N3.911 billion was received from the Federal Government as its share as an oil producing state within four years.

It said that the fund represented 13 percent derivation fund paid by the apex government to oil producing states in the country between 2018 to 2021.

According to the government, Lagos could not receive after between 2022 till date due to lack of production by the concessionaire which prompted the central government to sideline Lagos.

It noted that the Federal government legislation ensured that the funds were tied to quantity of production done within each of the oil producing states.

The commissioner or Energy and Mineral Resources, Abiodun Ogunleye, disclosed this on Wednesday during the 2024 Ministerial press briefing which was also attended by the Special Adviser to the governor on Mineral Resources, Abiola Olowu, held at the Bagulda Kaltho Press Centre, Alausa, Ikeja.

Ogunleye said: “Between 2018 and 2019, the state received N131 million from the federal government as part of oil derivation. And, between 2020 and 2021, we received N3.78 billion. But the owners of the assets have been having issues among themselves. And as long as they cannot produce, there would be no money for Lagos.

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

Recall that Yinka Folawiyo Petroleum Company Limited (YFP), an indigenous firm and operator of the OML 113 offshore Lagos, began the production of crude oil from the field.

Meanwhile, as part of measures to sustain its drive for an effective 24 hours economy, he disclosed that the government has concluded plans to setup five additional power hubs across the metropolis, to give residents other alternative source of clean energy.

According to him, these additional power hubs earmarked would complement the six solar POCs, giving Lagosians better alternative to power supply across Lagos.

Ogunleye stressed that renewable energy is the cornerstone of the government’s clean electricity plans for Lagos.

He added that there was plan to develop 1 gigawatt of grid scale solar energy capacity for the clean Lagos electricity market.

According to him, over 10 sites have been considered for the 1 gigawatt of solar grid scale project and they include Egbin terminal plant site, Ikorodu, Badagry, Agbara, Ogudu and others.

Aside from this, the commissioner stated that the administration of Governor Babajide Sanwo-Olu, has distributed over 10,000 gas tubes to petty traders to reduce their dependence on firewoods and other unclean sources in Lagos.

He said: “We have distributed over 10,000 gas tubes to the residents to abandon other unclean energy. We believe that this source is better and healthy for the traders and other Lagosians patronizing them”.

“While we are encouraging this, the government will be intensifying enforcement to curb haphazard establishment of gas plants and shops in the state. This is to ensure that everyone adhere to safety”.

The commissioner added that the Lagos state government would be partnering with “federal Government to ensure both gas and fuel stations do not cause harm to the people in the state. We want to ensure that our people are safe in Lagos”.

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