Lagos State governor, Akinwunmi Ambode, on Monday, said the state government will henceforth demand payment of 13 per cent derivation revenue from the Federal Government, following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited in Badagry, area of the state.
This was just as the governor assured that with the additional revenue coming from such area, the state government would be able to make more infrastructure available for Lagosians.
Ambode stated this on Monday when the management of the company led by the Group Managing Director, Tunde Folawiyo, paid him a courtesy visit at the Lagos House, Ikeja, declaring that Lagos had officially joined the League of Oil Producing States in the country.
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 per cent 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 per cent derivation. So all we need do is to apply and then we join,” he said.
According to Ambode, 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.