FG Okays 4 Oil Wells, 13% Derivation For Lagos
(R-L): Lagos State Governor, Mr. Akinwunmi Ambode, receiving a sample of the Crude Oil discovered in the State by the Group Managing Director, Tunde Folawiyo Petroleum Company Limited, Mr. Tunde Folawiyo[/caption]
The Federal Government has approved four of the five oil wells discovered in Aje area of Lagos State, stating that the south western state would be entitled to 13 per cent derivation from the Federation Account.
The 13 per cent derivation fund is spelt out under Section 162 (2) of the 1999 Constitution, as well as the provision of the allocation of Revenue Act 2004.
“We are very glad to receive this delegation,” he said. “We thank the federal government, especially President Muhammadu Buhari for making this happen very promptly. This has been the quickest action that has been taken by RMAFC since I have known the commission.
Advertisement
“I used to be the state accountant general. So I had a lot of transactions and a relationship with the institution called RMAFC. Within a span of about 60 days after we wrote our letter and even before we wrote the letter, this technical committee was set up.
“It gladdens me that the institution works and is working for the good of Nigeria,” he said.
Ambode commended members of the DPR and NBC, saying both institutions “have contributed immensely to the process of the discovery and production of crude oil in Lagos”.
He also urged other states “to activate the mineral deposits in their domain as a means of boosting internally generated revenue (IGR)”.
