Lagos State has been officially declared an oil producing state.
Lagos, Nigeria’s South-West joins the League of Oil Producing States in the country following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited in Badagry, Lagos.
Lagos State Governor, Akinunmi Ambode, who made the declaration when the management of the company paid him a courtesy visit at the Lagos House, Ikeja commended the firm for its determination in achieving the feat after twenty-five years of hard work.
Governor Ambode also said the feat has not only placed Lagos in the history books as the first State outside the Niger Delta to become an oil producing State, but has also opened up a new page for revenue generation in the State.
According to the Governor, by the provision of Section one six two, Sub-Section two of the Nigeria Constitution, Lagos has become an oil producing State and eligible to partake in the sharing of the thirteen percent derivation fund.
“I want to thank you very much for this and I say it with all conviction because I know that based on section 162 Sub-Section 2 of the Nigeria Constitution, Lagos becomes an oil producing State and by virtue of this, the 13 percent derivation that is due to oil producing States, Lagos will start to partake from it by your very good gesture. So we officially declare Lagos State as an oil producing State, we also notify the federal government by this action that we would be sharing out of the 13 percent derivation. So all we need do is to apply and then we join,” he stressed.
Brighter hope for the future
Governor Ambode also said the development should show every Nigerian business owner that there was still hope for economic revival if they showed enough resilience in the face of any economic downturn.
He said the resilience of the Yinka Folawiyo Petroleum Company; an indigenous firm had shown the possibilities and opportunities for investors and businessmen willing to commit their resources to boost local production.
“It also means that by the additional revenue that is coming from this action, we would have more resources to provide infrastructure for ‘Lagosians’ and this is what we want other investors and businessmen to emulate, so that beyond the issue of profit, you are actually creating impact on people without them necessarily knowing that it is actually coming from a venture like this that you have embarked on; I will like to let you know that that we have three senatorial zones in Lagos; from the Lagos West axis, we have crude oil coming out of it, from the Lagos East axis, we have the petrochemical refinery factory coming from the Lagos Free Trade Zone by the Dangote Group which will come on board by 2018 and from the Lagos Central axis, it’s the financial district of Nigeria. For Lagos, it’s designed for prosperity and to complement every achievement that is being recorded,” the governor stated.
Governor Ambode revealed that there was the likelihood of the State having three Sea Ports in Lagos in another two years, namely Badagry Deep Sea Port and the Lekki Port and also the existing Apapa port.
Meanwhile, the Group Managing Director (GMD) of the petrochemical firm, Mr Tunde Folawiyo revealed that the production capacity of the exploration currently stood at twelve thousand barrels per day, with a view to increasing it to about fifty thousand barrels in the next twenty-four months.
He said that the discovery of crude oil in Lagos, which took over 25 years to achieve, had gone a long way to show the possibilities achievable if government continued to lend support to indigenous investors and companies.
“At so many points along the way, we could have given up because it was a very rough road, but the point is that only a Nigerian company would have continued to do what we did. The man crux is that we need government and government needs us and where government supports assiduously, it can only be success,” Folawiyo noted.
Cost of discovery
On the amount that went into the investment, the oil and gas guru said the company had committed about $400 million to achieve the feat.
He said the current status of the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility to increase to 25,000 to 50,000 barrels per day in the nearest future.
Folawiyo also presented Governor Ambode with a sample of the crude oil discovered by his company in the State, a confirmation of Lagos becoming the first basin out of the Niger Delta to become an oil producing State.