Oil Derivation: Lagos Gets N3.9b in Four Years

Lagos State, Wednesday, said it received N3.91bn between 2020 and 2021 from the derivation fund as an oil producing state.

The state became an oil producing state in 2016, and became entitled to a share of the 13 percent from the derivation fund.

Commissioner for Energy and Mineral Resources, Mr Abiodun Ogunleye, who stated this at a news briefing in Alausa, Ikeja, noted that the oil well had some challenges since 2022 which made it unable to produce thereby stopping the fund from the federal government.

“Between 2018-2019, the state government received from the federal government N131 million as part of oil derivation. 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,” Mr Ogunleye said.

As part of efforts to make Lagos a twenty-first century economy, the Commissioner said the state would take advantage of the recent unbundling of the electricity sector by being an enabler for Lagos Electricity Market.

Mr Ogunleye assured that illegal gas shops springing forth within streets across the state would be sanctioned from next month to prevent explosion and loss of innocent lives.

The Commissioner said that forty-one people were arrested, thirty-five prosecuted with twenty-nine convictions within the last year for vandalism and theft of power Infrastructure across the State.

He said that six cases were ongoing while the ministry intensified efforts to continuously engage stakeholders on the need to protect public Infrastructure.