Following the first export from the Aje oil field located offshore Lagos, the Governor of Lagos State, Governor, Akinwunmi Ambode, has announced at the annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists, that the state expects to get its first oil derivation fund in December, 2016.

Since oil producing states in the country are entitled to 13 per cent derivation fund from the Federation Account on crude oil from their territories, the Lagos State Government is anxiously waiting to receive its first derivation.

Earlier this year, precisely on the 3^rd of May, 2016, an announcement was made about the commencement of crude oil production from the Aje oil field by an indigenous firm and operator of the OML 113, Yinka Folawiyo Petroleum Company Limited.

The governor, who was represented by the Commissioner for Energy, Mr. Wale Olowu, said, “I am pleased to announce that the first export from the Aje oil field has happened. That is not the big deal; the big deal is that Lagos State is anxiously awaiting its first derivation in December. So, in December, we will be collecting our first derivation. 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 employment; 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.”

Ambode said his administration would continue to work diligently to make Lagos the investment and oil and gas hub of the nation. He assured all stakeholders in the industry of his commitment to provide a safe and secure environment for exploration activities that are consistent with global best practice. He added that the state was also closely monitoring and getting ready to massively support other Oil Prospecting Licences in Lagos to make sure they can quickly transform to Oil Mining Leases.

The governor further stated that the state had established its own oil and gas corporation called Ibile Oil and Gas, which, he said, would open for business by next month, noting that the company would be involved in exploration, development and production, among others. He said, “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.”

According to the Federal Government, four of the five Aje oil wells discovered in Lagos belong to the state. The Chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission, Alhaji Aliyu Mohammed, said during a recent visit by a delegation to the Lagos State Government that the verification by the committee and its recommendation would facilitate the disbursement of 13 per cent derivation fund to the state in line with the Constitution.