Home Business & Economy FG to begin disbursement of 13% derivation fund to Lagos soon

FG to begin disbursement of 13% derivation fund to Lagos soon

Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Aliyu Mohammed, has said that the Federal Government of Nigeria has set up a committee aimed at disbursing the 13 per cent Derivation Fund to Lagos State, following the commencement of crude oil and gas production in the state by Yinka Folawiyo Petroleum Company Limited.
Mohammed stated this during a courtesy visit to the state to verify crude oil and gas production from the Aje oil wells. Mr. Mohammed said the purpose of the visit was to begin disbursement of the Derivation Fund to the State in line with the constitution of the Federal Republic of Nigeria.
The 13 per cent Derivation Fund is money paid to crude oil producing states by the Federal Government. Since 1999, the nine oil producing states – Akwa Ibom, Rivers, Bayelsa, Delta, Cross River, Edo, Ondo, Imo, and Abia States – have shared about N4 trillion among them.
The committee to determine the location of the Aje oil wells was comprised of the RMAFC, Department of Petroleum Resources, Office of the Surveyor General of the Federation, and the National Boundary Commission.
Lagos State Governor, Akinwunmi Ambode, on his own part described the visit by the committee as remarkable in the annals of the history of Lagos, adding that “it signals the official step that takes the state to the final destination that makes us to become an oil producing state”.

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