Oil producing states: FG okays 13% derivation fund for Lagos

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

Chairman, Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Alhaji Aliyu Mohammed, said this during a courtesy visit to Governor Akinwunmi Ambode in Alausa, Ikeja.

The visit of RMFAC was sequel to a letter sent by Governor Ambode to President Muhammadu Buhari a few months ago, seeking the inclusion of Lagos on the list of oil producing states to qualify it for payment of 13 per cent derivation fund.

Mohammed noted that the request of the governor prompted the set-up of an Inter-Agency Technical Committee, comprising RMAFC, DPR, Office of the Surveyor-General of the Federation and the National Boundary Commission, to determine the location of Aje Oil Wells.

He explained that 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.

 “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, and, therefore, should be attributed to Lagos State. But Aje 3 cannot be claimed by the state,” he said.

*Credit to Vanguard