…Gets ₦3.9bn Oil Derivation Fund
…To Clamp Down On Ilegal Gas Service Station
The Lagos State Governor, Babajide Sanwo-Olu, has approved the procurement of 20,000 prepaid energy metres for low-income communities in the state.
The state’s Commissioner for Energy and Mineral Resources, Biodun Ogunleye made this known at the 2024 ministerial press briefing on Wednesday, to mark the second term in office of Governor Sanwo-Olu at Alausa, Ikeja.
According to him, the development was to improve the rural electrification programme of the state.
“Approval was further expanded to utilise funding to catalyse full metering across the state via collaborations with electricity Distribution Companies in Lagos and a leading smart metering solution company, ElSewedy Electric,” he said.
Ogunleye also revealed that the sum of ₦3.911bn was realised since it became an oil-producing state despite that production has been hampered due to challenges faced by the company managing its exploration.
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According to Ogunleye, Lagos State which joined the league of oil-producing states in the country in 2016, has received a total of ₦3.911bn as its share of the 13 per cent derivation fund.
Oil-producing states are entitled to a 13 per cent derivation fund from the Federation Account. Other oil-producing states include, Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.
According to him, It would be recalled that Yinka Folawiyo Petroleum Company Limited (YFP), a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, commenced the production of crude oil from the field.
The commissioner said, “Between 2018 and 2019, the state government received ₦131m as part of oil derivation from the federal Government. And between 2020-2021, the Lagos state government received ₦3.78bn.
“But the owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos.
“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production.”
He also frowned at the increasing death rate from gas explosions in the state, saying that the state government will soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors in the state.
Ogunleye added that any gas service station not approved for operation in Lagos state, will face the full wrath of the law.
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