- $400 million committed to developing Aje oil field
Lagos State Governor, Mr. Akinwunmi Ambode, on Monday said the state had officially joined the league of oil-producing states in the country with the discovery of crude oil off Lagos coast by an indigenous oil firm, Yinka Folawiyo Petroleum Company Limited.
By implication, the governor disclosed, the state would henceforth start benefiting from 13 percent derivation due to oil-producing states in line with the provision of section 162(2) of the 1999 Constitution.
He made the remark when the management of Yinka Folawiyo Petroleum Company Limited led by its Group Managing Director/Chief Executive, Mr. Tunde Folawiyo paid him visit at Lagos House, Ikeja.
But the governor noted that Lagos “has become an oil producing state by the provision of Section 162(2) of the Constitution. By virtue of this, Lagos will start to partake from 13 percent derivation that is due to oil producing states.
“So, we officially declare Lagos State as an oil producing state. We notify the federal government by this action that we will be sharing out of 13 percent derivation. So all we need do is to apply and then we join.”
Ambode said the discovery of Aje oil “has not only placed Lagos in the history books as the first state outside the Niger Delta to become an oil producing State, but has also opened up a new page for revenue generation in the State.
“It also means that additional revenue will come to the state. We would have more resources to provide infrastructure for Lagos residents. This is what we want other investors and businessmen to emulate.
“Beyond the issue of profit, you are actually creating impact on people without them necessarily knowing that it is actually coming from a venture like this that you have embarked on,” he said.
He said the resilience of the Yinka Folawiyo Petroleum Company has shown the possibilities and opportunities for investors and businessmen willing to commit their resources to boost local production.
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