Governor Akinwunmi Ambode of Lagos state has said that the state government will henceforth demand the payment of 13 percent derivation from the Federal government following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited in the Badagry area of the state.
Ambode made the statement when he received the management of the company led by the Group Managing Director, Tunde Folawiyo in Ikeja.
“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.