By Ibhade John –
A committee charged with the responsibility of disbursing 13 per cent Derivation Fund to Lagos State has been raised by the Federal Government.
Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC),Aliyu Mohammed disclosed this on Wednesday during a courtesy visit to the State Governor Akinwunmi Ambode.
He said the Committee was in the State to verify crude oil and gas production from Aje Oil Wells and begindisbursement of the Derivation Fund to the State in line with the constitution of the Federal Republic of Nigeria.
He said: “It is also important to state that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited is the first time oil is being produced outside the Niger Delta basin and therefore of a significance in diversifying the source of crude and gas production in the country.”
The 13 per cent Derivation Fund is money paid to crude oil producing states by the federal government.
The other nine oil producing states are Akwa Ibom, Rivers, Bayelsa, Delta, Cross River, Edo, Ondo, Imo, and Abia States.
Responding the Governor said: “We want to thank the Federal Government, most especially President Muhammadu Buhari for making this to happen very promptly. I want to say that this has been the quickest action that has been taken by RMAFC since I have known the Commission”.
He added: “I used to be a former Account General so I had a lot of transactions and relationship with the institution called RMAFC. Within a span of about 60 days of when we wrote our letter, and even before we wrote the letter, this technical committee was set up. It gladdens me to say that the institution works and is working for the good of Nigeria.”