Lagos To Start Receiving 13% Derivation Fund

The Federal Government, yesterday, approved four of the five Aje Oil wells, discovered in Lagos State and also disclosed plans to commence disbursement of 13 per cent derivation fund to the state as an oil producing entity.

Speaking during a visit to Governor Akinwunmi Ambode in Alausa, Ikeja, the Chairman, Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Alhaji Aliyu Mohammed said, the committee’s visit to Lagos was aimed at verifying crude oil and gas production from Aje Oil Wells for the purpose of disbursement of the 13 per cent derivation fund to the state, in line with the constitution of the Federal Republic of Nigeria.

Mr. Muhammed explained why Lagos lost one of the well by saying that while Aje Oil wells 1, 2, 4 and 5 fall within the 200 miles Isobath-a line on a map that connects all points that have same depth below water surface, Aje 3 oil well falls beyond the 200 miles isobaths, therefore cannot be claimed by the state.

In concluding, Mohammed said:  “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.”