The Lagos State Government has announced that it has accrued N3.911 billion since it became an oil-producing state. However, production has faced obstacles due to issues encountered by the managing exploration company.
This was revealed by the state’s Commissioner for Energy and Mineral Resources, Biodun Ogunleye, during the 2024 Ministerial Press Briefing marking the second term of Governor Babajide Sanwo-Olu at Alausa, Ikeja on Wednesday.
Ogunleye explained that since joining the ranks of oil-producing states in 2016, Lagos has received a total of N3.911 billion from the 13 percent Derivation Fund allocated to oil-producing states from the Federation Account. The other states benefiting from this fund include Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
He also noted that Yinka Folawiyo Petroleum Company Limited (YFP), a wholly indigenous firm managing OML 113 offshore Lagos, initiated crude oil production from this field.
The commissioner said, “Between 2018-2019, the state government received N131 million as part of oil derivation from the Federal Government. 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.
“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production.”
On the community electrification programme, the commissioner said the governor has approved the procurement of 20,000 units of prepaid energy metres for low-income communities in the state.
The commissioner frowned upon the increasing death rate from gas explosions in the state, and said the state government would soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors in the state.
Ogunleye said any gas service station not approved for operation in the state would face the full wrath of the law.