Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has approved four oil wells for Lagos State.
The approved oil wells were part of the five wells discovered by an indigenous oil and gas exploration firm, Yinka Folawiyo Petroleum Company Limited.
The Chairman, Indices and Disbursement Committee of RMAFC, Alhaji Aliyu Mohammed conveyed the news to Governor Akinwunmi Ambode when he and members of the Committee paid a courtesy visit to the state.
“The technical committee, based on the provision of the Allocation of Revenue Act 2004, recommended that number 1, 2, 4 and 5 of the Aje oil wells fall within 200m isobaths and therefore should be attributed to Lagos State,” he reiterated.
Disbursement of 13% Derivation Fund
The Committee Chairman said his team was on a working visit to Lagos to verify crude oil and gas production from the wells for the purpose of disbursement of 13 per cent derivation fund to the State in line with the constitution of the Federal Republic of Nigeria.
“For the purpose of the Derivation Fund as spelt out under Section 162 (2) of the 1999 constitution, the technical committee has come to Lagos to get a first hand information on the status of the wells; it is also important to state that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited is the first time oil is being produced outside the Niger Delta basin and therefore significant in diversifying crude and gas production in the country,” Mohammed said.
He said the Commission had set-up an Inter-Agency technical Committee comprising of the RMAFC, Department of Petroleum Resources, DPR, Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje Oil Wells.
A boost for Nigerian economy
Governor Akinwunmi Ambode, while speaking on the development said the commencement of crude oil production in the State would in no small measure enhance the economy of not just the state alone, but Nigeria in general.
The Governor said that it was significant for the Nigerian economy because the State has emerged the first oil producing state outside the Niger Delta basin as he described the visit by the committee as remarkable in the annals of the history of Lagos.
Challenge to other states
“We are very glad to receive this delegation, we also want to thank the federal government, most especially President Muhammadu Buhari for making this happen very promptly, within 60 days that we wrote our letter, even before we wrote the letter, this technical committee was set up, it gladdens me to say that the institution works and is working for the good of Nigeria,” the Governor affirmed.
Governor Ambode also commended members of the DPR and the Boundaries Commission, saying that both had contributed immensely to the process of the discovery and production of crude oil in Lagos.
The Governor urged other states in the federation to begin to activate the mineral deposits in their domain as a means of boosting their Internally Generated Revenue (IGR).