Wednesday, August 17, 2016

FG Approves 4 Oil Wells, Payment Of 13% Derivation Fund For Lagos

The Federal Government on Wednesday announced that four out of the five Aje Oil Wells have been approved for production of crude oil in Lagos.

The Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed, stated this when he led members of the Committee on a courtesy visit to Lagos State Governor, Mr. Akinwunmi Ambode, at the Lagos House, Ikeja.

Mohammed said the Committee was in Lagos to verify crude oil and gas production from Aje Oil Wells for the purpose of disbursement of the 13 per cent Derivation Fund to the state in line with the Nigerian.

He said the Commission had set-up an Inter-Agency technical Committee comprising of the RMAFC, DPR, Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje Oil Wells.

Mohammed said the Technical Committee recommended that for the purpose of the Derivation Fund as spelt out under Section 162 (2) of the 1999 Constitution as well as the provision of the Allocation of Revenue Act 2004, number 1, 2, 4 and 5 of the Aje Oil Wells fall within 200m isobaths and therefore should be attributed to Lagos State.

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