Ambode: Lagos Can Now Share from 13% Derivation
By implication, the governor disclosed,
the state would henceforth start benefiting from 13 percent derivation
due to oil-producing states in line with the provision of section 162(2)
of the 1999 Constitution.
He made the remark when the management
of Yinka Folawiyo Petroleum Company Limited led by its Group Managing
Director/Chief Executive, Mr. Tunde Folawiyo paid him visit at Lagos
House, Ikeja.
But the governor noted that Lagos “has
become an oil producing state by the provision of Section 162(2) of the
Constitution. By virtue of this, Lagos will start to partake from 13
percent derivation that is due to oil producing states.
“So, we officially declare Lagos State
as an oil producing state. We notify the federal government by this
action that we will be sharing out of 13 percent derivation. So all we
need do is to apply and then we join.”
Ambode said the discovery of Aje oil
“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.
“It also means that additional revenue
will come to the state. We would have more resources to provide
infrastructure for Lagos residents. This is what we want other investors
and businessmen to emulate.
“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,” he said.
He said the resilience of the Yinka
Folawiyo Petroleum Company has shown the possibilities and opportunities
for investors and businessmen willing to commit their resources to
boost local production.
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