Lagos state government said that it has received a total of N3.911 billion as its share of the 13 percent derivation fund since becoming an oil-producing state in 2013.
According to the government, production has been hampered due to challenges faced by the company managing its exploration.
The Commissioner for Energy and Mineral Resources, Biodun Ogunleye stated this at a ministerial press briefing to mark the first year of the second term in office of Governor Babajide Sanwo-Olu.
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.
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.”
The commissioner also said Governor Sanwo-Olu has approved the procurement of 20,000 prepaid metres for low-income communities.
“Approval was further expanded to utilise funding to catalyse full metering across the state via collaborations with electricity Distribution Companies and a leading smart metering solution company, ElSewedy Electric,” he said.
Ogunleye, who frowned at the increasing death rate from gas explosions, said the government will soon introduce stringent measures to regulate the operation of gas vendors.
