FG Begins Process Of Disbursement Of 13% Derivation Fund To Lagos | Independent Newspapers Limited
Newsletter subscribe


FG Begins Process Of Disbursement Of 13% Derivation Fund To Lagos

FG, Buhari, fed govt, RUFIN, herdsmen
Posted: Aug 18, 2016 at 6:30 am   /   by   /   comments (0)

…Oil Production In Lagos, Significant Economic Boost For Nigeria — Ambode



Ejikeme Omenazu


Lagos – The Federal Government has verified the crude oil and gas production from the Aje Oil Wells in Lagos State for the purpose of disbursement of the 13 percent derivation fund to the state in line with the nation’s constitution.

Alhaji Aliyu Mohammed, chairman of the committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), disclosed this in Lagos when he led a team of the committee members on a courtesy visit to Governor Akinwumi Ambode on Wednesday.

Mohammed, who stated that he and his team was on a working visit to the state, said the commission had set up an inter-agency technical committee, comprising of the RMAFC, DPR, Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje Oil Wells.

“The technical committee recommended that for the purpose of the derivation fund as spelt out under Section 162 (2) of the 1999 constitution, as well as the provision of the Allocation of Revenue Act 2004, number 1, 2, 4 and 5, Aje Oil Wells fall within 200m isobaths and therefore should be attributed to Lagos State”, he stressed.

“As a result, the commission and members of the inter-agency committee had to embark on the working visit to the oil wells to conclude the process”, adding that the outcome of the visit would promote national unity as well as the socio-economic development of Lagos State and Nigeria.

“It is also important to state that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited is the first time oil is being produced outside the Niger Delta basin and therefore of a significance in diversifying the source of crude and gas production in the country.”

Ambode, while receiving the RMAFC team at the Lagos House, Ikeja, said the commencement of crude oil production in the state would in no small measure enhance the economy of not just the state, but the nation in general.

He maintained that it was significant for the Nigerian economy that Lagos State emerged as the first oil producing state outside the Niger Delta basin.

He described the committee’s visit as remarkable in the history of Lagos, adding that it signalled the official step that would take the state to the final destination of becoming an oil producing state.

“We are very glad to receive this delegation. We also want to thank the Federal Government, most especially President Muhammadu Buhari, for making this to happen very promptly. I want to say that this has been the quickest action that has been taken by RMAFC since I have known the commission.

“I used to be a former Account General. So, I had a lot of transactions and relationship with the institution called RMAFC. Within a span of about 60 days of when we wrote our letter, and even before we wrote the letter, this technical committee was set up. It gladdens me to say that the institution works and is working for the good of Nigeria,” the governor said.

Ambode also commended members of the Department of Petroleum Resources (DPR) and the Boundary Commission, saying that they had contributed immensely to the process of the discovery and production of crude oil in Lagos.

While he alluded to the fact that the feat in Lagos had kick-started the path to diversification of oil production in Nigeria, the governor urged other states in the federation to begin to activate the mineral deposits in their domain as a means to boost their internally generated revenue (IGR).

“It would also give us revenue independence in a manner that there would be equal growth from all the nooks and corners of Nigeria.

“I am happy that RMAFC has taken this step and also to say that they should also encourage other states to engage in such activities that would allow them to be able to activate whatever mineral deposit that we have in the various states in conjunction with the Federal Government, so that we can start to diversify revenue and growth and then create a balanced growth and development for the whole country,” Ambode said.