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Lagos not paid derivation fund as oil producing state since 2018 – Commissioner

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Mr Olalere Odusote, Lagos State Commissioner for Energy and Mineral Resources, on Friday said the state had not received any derivation fund since it became an oil-producing state in 2018.

Odusote said this during the question and answer segment at the 2020 Badagry Youth Oil and Gas Conference, organised by the ministry.

The theme of the conference is “Youths Engagement in Oil and Gas Producing Area As a Panacea to Community Development”.

According to him, Yinka Folawiyo Petroleum Co. started oil exploration in Badagry communities two years ago (2018) before the present administration.

“Up till now, nobody in Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has calculated the amount due as derivation fund to Lagos State.

“From 2018 to date, I can tell you categorically that Lagos State has not received a single dime from the fund,” he said.

The commissioner promised to take the issue of multiple checkpoints along the Agbara-Seme expressway to Gov. Mr Babajide Sanwo-Olu for necessary action.

He, however, assured the youths of Badagry that the state government would complete the Mile 2 Okoko section of the expressway in the next two years.

“We are going to do everything that we have promised so that Badagry will benefit from being a host community.

“Beyond that, we are going to see that Badagry gets what is due to it from the state.

“We will continue to deliver our promise to Badagry people and will develop the infrastructure that we promised.

“We expect the people to take advantage of the state skill acquisition programme to improve themselves and contribute to the economy,” he said.

Odusote appealed to the youths to allow Folawiyo petroleum to carry out the Corporate Social Responsibility (CRS) as it had started.

He further said that the company launched the Aje Micro Credit Scheme for the people of Badagry communities to get a loan.

“Now, the company has set up a Micro Credit Scheme to give out soft loans to the people of nine communities with zero interest.

“I don’t see any problem with the oil company, I think it has been a good citizen and I am sure it will fulfill these promises,” he said.

NAN reports that the first oil was achieved in the Aje field offshore Lagos in May 2016, 20 years after it was discovered.

Yinka Folawiyo Petroleum Company Limited, a wholly-owned indigenous firm, is the operator of the Oil Mining Lease113, where the field is located.

Other partners are Pan Petroleum Aje Limited (a subsidiary of Panoro Energy), New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, and PR Oil & Gas Nigeria Limited.


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