We received over N3.78bn as oil derivation between 2018 and 2021 – LASG

prevention guild

We received over N3.78bn as oil derivation between 2018 and 2021 – LASG

May 10, 2024

…Says owners of asset no longer producing

The Lagos State government says it will be embarking on other research works to discover new mineral resources that could boost Lagos’ revenue annually.

The Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, who disclosed this on during the 2024 noted that the oil discovery in Lagos has assisted the state to join oil producing states and receipt of derivation from the Federal Government.

He said: “Between 2018 and 2019, the state government received from the Federal Government N131 million as part of oil derivation. Also, within 2020-2021, the Lagos state government received N3.78 billion.

“However, presently, the owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos. The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production”.

Meanwhile he added that, as part of measures to sustain its drive for an effective 24-hour economy, the Lagos State Government has concluded plans to set up five additional power hubs across the metropolis in a bid to give residents other alternative sources of clean energy.

The state government said that these additional power hubs earmarked would complement the six solar POCs (Proof of Concept), giving Lagosians a better alternative to power supply across Lagos.

Stressed that renewable energy is the cornerstone of the government’s clean electricity plans for Lagos, Ogunleye added that there are plans to develop One Gigawatt of grid-scale solar energy capacity for the clean Lagos electricity market and over 10 sites considered for the project including Egbin terminal plant site, Ikorodu, Badagry, Agbara, Ogudu and others.

Aside from this, the Commissioner further disclosed that the administration of Governor Babajide Sanwo-Olu has distributed over 10,000 gas tubes to petty traders to reduce their dependence on firewood and other unclean sources in Lagos.