LAGOS State has become Nigeria's 11th oil-producing state which now entitled it to the 13% derivation which all other producers receive after the Tunde Folawiyo Petroleum Company began lifting crude in Badagry.  

Governor Akinwunmi Ambode revealed that the state has now officially joined Nigeria’s league of oil producing states. He made the declaration when the management of the company led by Mr Tunde Folawiyo, its group managing director, paid him a courtesy visit at the Lagos House, Ikeja. 

 “I want to thank you very much for this and I know that based on section 162 Sub-Section 2 of the Nigeria constitution, Lagos has become an oil producing state. By the virtue of this achievement, the 13% 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 and will also notify the federal government by this action that we would be expecting our share of the 13% derivation. All we need do is to apply and then we join.” Governor Ambode added. 

He added that the feat had placed Lagos in the history books as the first state outside the Niger Delta to become an oil-producing state. Governor Ambode also pointed out it had also opened up a new page for revenue generation in the state.`

Mr Folawiyo said that the discovery of crude oil in Lagos took over 25 years to achieve and had shown that there were possibilities when government lent support to indigenous investors and companies. He added that the company had committed about $400m to achieve the feat and the current status of the oil well had the capacity to produce at least 12,000 barrels per day, with a possibility of increasing to 25,000 or 50,000 barrels in the nearest future.