I just smiled to myself a little when people were rejoicing that Lagos State has joined the oil producing states.
The truth is that Lagos has ALWAYS been an oil producing state at least since Bonga oil field started producing in 2005.
For those who didn’t know, Bonga Oil Well run by Shell is the highest oil producing well in Nigeria at about 200,000 barrels per day and it lies along the coast of Lagos State by international measuring standard, though with closer proximity to the NigerDelta.
But Lagos could not claim any derivation from that production due to Onshore/Offshore dichotomy. The FG doesn’t pay derivation on oil wells more than 200 meters isobar. They only pay for littoral wells.
I think the newly discovered Aje oil field would also be categorized as an offshore oil field, so no derivation payment would come to Lagos.
We have all these wealth attached to the zone, yet states like Osun, Ekiti and even Oyo can’t pay their workers’ salary.
Are you guys still wondering why I am against the crooked structure in that country and the crass injustice inherent in it?