Lagos Expecting First Crude Oil Derivation Payment Next Month

Lagos State is expecting to receive its first payment of derivation fund as an oil producing state next month.The payment will be on account of exports from the offshore Aje oil fields. This was disclosed by Governor Akinwunmi Ambode yesterday at the annual international conference and exhibition of the Nigerian Association of Petroleum Explorationsts.

Lagos State Commissioner for Energy, Wale Olowu who represented the governor declared:

“We cannot wait to see a lot of oil and gas come under the soil of Lagos, because it will help us in the area of  electricity generation, which we want to do off-grid anyway; and it will also help us in making sure that our revenue continues to be diversified.

“We reassure all of you stakeholders in the industry of our commitment to provide a safe and secure environment for exploration activities that are consistent with global best practices.

“We also want the development of the oil and gas industry in Lagos. We didn’t plan it originally. But now that we are seeing the evolution, we are doing everything possible to bring them together because on our west coast, we have found oil.

“On the east coast, we already have the Dangote Refinery that is the largest in Africa and one of the largest in the world; and then in our central zone, we have the banks that can finance the oil tank farms; and then, we have the seaport for export.”

Lagos, Nigeria’s commercial capital is expected to get its first 13% crude derivation fund from the Federal Government this December.