Lagos To Get 13% Oil Derivation Fund From FG | Independent Newspapers Limited
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Lagos To Get 13% Oil Derivation Fund From FG

Posted: Aug 17, 2016 at 6:34 pm   /   by   /   comments (1)

The Federal Government has set up a committee for the disbursement of 13 per cent derivation fund to Lagos State, following the commencement of crude oil and gas exploration in the state.

Aliyu Mohammed, chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), stated this Wednesday during a courtesy visit to the state to verify crude oil and gas production from the Aje oil wells.

Mohammed said the purpose of the visit was to begin disbursement of the derivation fund to the state in line with the Constitution.

“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,” he said.

The 13 per cent derivation fund is money paid to crude oil-producing states by the federal government.

Since 1999, nine oil producing states, Akwa Ibom, Rivers, Bayelsa, Delta, Cross River, Edo, Ondo, Imo, and Abia, have shared about N4 trillion.

The committee comprises the RMAFC, Department of Petroleum Resources, Office of the Surveyor-General of the Federation, and the National Boundary Commission.

Governor Akinwunmi Ambode of Lagos State described the committee’s visit as remarkable in the annals of Lagos, “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.

“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 urged other states in the federation to begin to exploit the mineral deposits in their domain as to boost their revenue.

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

Comments (1)

  • Aug 18, 2016 at 8:04 am OUObioha

    Lagos is blessed or should I say the most blessed state.

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