Lagos now officially an oil producing state – Governor Ambode

Lagos State Governor, Mr. Akinwunmi Ambode (right), receiving a sample of the Crude Oil discovered in the State by the Group Managing Director, Tunde Folawiyo Petroleum Company Limited, Mr. Tunde Folawiyo 
Photo: Lagos State government
Lagos State Governor, Mr. Akinwunmi Ambode (right), receiving a sample of the Crude Oil discovered in the State by the Group Managing Director, Tunde Folawiyo Petroleum Company Limited, Mr. Tunde Folawiyo Photo: Lagos State government

The Lagos State Governor, Akinwunmi Ambode, on Monday declared that Lagos has officially joined the League of Oil Producing States in Nigeria following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited in Badagry, Lagos.

Governor Ambode, who made the declaration when the management of the company led by the Group Managing Director, Tunde Folawiyo, paid him a courtesy visit at the Lagos House, Ikeja, commended the firm for their doggedness to achieve the feat after 25 years of hard work, saying by the provision of Section 162 Sub-Section 2 of the Nigeria Constitution, Lagos has become an oil producing State.

“I want to thank you very much for this and I say it with all conviction,” Mr. Ambode said.

“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 percent 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 an oil producing state, we also notify the Federal Government by this action that we would be sharing out of the 13 percent derivation. So all we need do is to apply and then we join.”

Mr. Ambode also said 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.

“It also means that by the additional revenue that is coming from this action, we would have more resources to provide infrastructure for Lagosians,” he said.

“And this is what we want other investors and businessmen to emulate, so that beyond the issue of profit, you are actually creating impact on people without them necessarily knowing that it is actually coming from a venture like this that you have embarked on.”

He said the resilience of Yinka Folawiyo Petroleum Company, an indigenous firm, has shown the possibilities and opportunities for investors and businessmen willing to commit their resources to boost local production.

“The Federal Government has always said that we all need to look back inwards and start to do things for ourselves,” said the govenor.

“Spending 25 years to be able to get to this stage and get something productive shows a lot about your belief, tenacity and doggedness and I want to recommend you to every other Nigerian investor that there is still greater hope for Nigeria and with the likes of you.

“I don’t see any reason why any Nigerian needs to be afraid because you have just shown by this indigenous discovery that anything is possible in Nigeria.”

Governor Ambode said the historic discovery means that the three senatorial districts, Lagos West, Lagos East and Lagos Central have all combined to open up the economic and investment potentials of the state.

“From the Lagos West axis, we have crude oil coming out of it, from the Lagos East axis, we have the petrochemical refinery factory coming from the Lagos Free Trade Zone by the Dangote Group which will come on board by 2018 and from the Lagos Central axis, it’s the financial district of Nigeria,” he said.

“We are likely to have three Sea Ports in Lagos in another two years; we have the Badagry Deep Sea Port and the Lekki Port and also the Apapa port.

“So, somehow, in some manner, some things are being put up that seems like a puzzle, but the future prosperity of Lagos is more than well assured and we are happy that we are part of that and this government is heavily committed to complement the efforts of business men like you.”

Earlier, Mr. Folawiyo said the discovery of crude oil in Lagos, which had taken over 25 years to achieve, has gone a long way to show the possibilities achievable if government continues to lend support to indigenous investors and companies.

“At so many points along the way, we could have given up because it was a very rough road, but the point is that only a Nigerian company would have continued to do what we did,” Mr. Folawiyo said.

“The main crux is that we need government and government needs us and where government supports assiduously, it can only be success.”

Mr. Folawiyo said the company spent about $400million dollars to achieve the feat.

He said the current status of the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility to increase to 25,000 to 50,000 barrels per day in the nearest future.

Mr. Folawiyo also presented Governor Ambode with a sample of the crude oil discovered by his company in the state, a confirmation of Lagos becoming the first basin out of the Niger Delta to become an oil producing state.


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  • Otile

    Omo Odua kil’oshe? Imam should not award him the 13% derivative until we see for ourselves the amount of crude oil they are going to scoop from Egbaland. You see, seeing is believing.
    Shugaba Gwovanar Sokoto once told us that they made abundant discovery of oil in Sokoto, but little did we know it was all banza. In addition to their unmerited monthly allocation they wanted to be rewarded with extra 13% derivative, despite the fact that they suffered no visible oil pollution in their land.

  • DD

    Nice one! More funds for development.

    • Otile

      Nice one nothing. This is a scheme to steal oil money from Niger Delta. NE has been digging and digging deep but nothing comes out it. Every year they are wasting endless money on a wide goose chase in the so called Chad Basin instead of the money to develop the Niger Delta, an area feeding the nation.

      • Old No7

        Does ur comment make sense even to u?

        • Otile

          Show me any result from the diggings, hopping and puffing the useless government have been doing in the North East. Is that how to develop a country? Common sense dictates that you do not neglect the area feeding you. Use common sense, boy.

          • Old No7

            What has your comment got to do with the topic of discussion? Deliberately veering off point shows deficiency of “common sense”

          • Otile

            Say what you think is off point. Can you?

  • Concerned

    Let’s hope that the picturesque and unspoilt lands of Badagry will not be sacrificed on the altar of greed and turned into an environmental disaster like parts of the Niger Delta

    • tony10

      It is 100% deep sea offshore.

  • Wilfred Bankole Ademokun

    LOBATAN, NIGER DELTA ALONE GET CRUDE OIL, FOR NIGERIA, WE FEED THESE YORUBA AND HAUSA FULANI PEOPLE WE MUST CONTROL OUR RESOURCES OR WE WILL SHOW YOU PEOPLE SEGEE. HAHAHAAAA LOBATAN. WELL DONE SIR BOLA AHMED TINUBU, THE GREAT JAGABAN.

  • Mutum Colonel Mariama(rtd)

    They must have laid a rather long pipe to the South South. That explains this unusual phenomenon. This is out of character and expectation. You can only get 13% derivation and the pollution is yours to deal with. Join the club.

  • oceania

    Very good development. I am happy for Lagos state. Does anyone know how the 13% derivative is distributed? Does that mean that every oil producing states gets 13% of the oil revenue generated from their state? If that is the case, then the riverine states have nothing to complain about.

    • Dan Nyaro Colonel Mariama(rtd)

      The only problem here is that revenues from cocoa and groundnuts back in the days were based on 50% derivation( you heard right, 50% which is a lot larger than %13%). Neither cocoa nor groundnut production came with any pollution or despoliation of the environment.Oil production is synonymous with these negatives by its very nature.I read that Lagos state will be producing about 5,000 gallons of crude a day.

      • Prophet

        As far as we know, you don’t just dig into the ground and harvest groundnut and cocoa. Farmers work their butts off planting and harvesting these crops. They don’t just sit on their butts with their palms open to receive funds from oil.

        • Otile

          The farmers and fishermen from Niger Delta would like to work their butts planting and harvesting their crops once again, but they have been denied their rights by: oil pollution, a horde of vandal army protecting the oil for the rich, and envy from others not receiving the 13%. Rogue politicians and lazy Fulanis are the ones sitting on their butts waiting for handout and oil money. Do you know how many people the vandal army have killed east of the Niger since oil was discovered in Bayelsa and Imo since 1957?

    • Otile

      False. The money Danjuma alone makes from his stolen oil blocks is more than the 13% derivative. Yet Danjuma does not do anything for Nigeria, instead he diverts that huge money to Panama. If you travel to Panama and Kayman Islands those places look like Dubai. What do we get from those stealing our oil? We would rather Buhari nationalize the oil instead of leaving it at the hands of these unpatriotic rogues. What do you think?

  • Titus

    IT IS POLITICAL OIL PRODUCTION. LAGOS CAN ONLY BECOME OIL PRODUCING STATE WHEN IT STARTS PRODUCING OIL FOR SALE BEFORE ENJOYING 13%

    • Old No7

      Hater

      • Otile

        What is the hate in his truth? So you hate the truth?

  • Monye Ebube

    Providence has a wonderful way of settling things; and in this case – of calling the bluff of the Niger Delta militants and avengers! Yes, Niger Delta will no longer be the only oil-producing region! Can I hear someone shout, “Halleluuuuuuyah!”

    Niger Delta for decades had fuel oil, but rather than making good of it, they wasted it through vandalizing oil facilities by senseless militancy. They showed themselves as the servant who never made good use of his allotted talent. Here is a good
    reference portion of the Bible which should serve as good take-home for the Niger Delta avengers and militants and I hope they understand the meaning of this parable given by Christ the master:

    “Therefore take the talent from him and give it to the one who has ten talents. For everyone who has will be given more, and he will have an abundance. But the one who does not have, even what he has will be taken away from him. And throw that worthless servant into the outer darkness, where there will be weeping and gnashing of teeth.’…” (Matt 25:28-30)

    • Otile

      You are a lunatic.

  • Burbank

    So Dangote Africa’s biggest refinery and world’s 6th largest will be locally supplied with crude from Lagos.
    Congrats Lagos.