Borno State Governor, Professor Babagana Umara Zulum, has secured a fresh commitment from the Nigerian National Petroleum Company Limited (NNPCL) to resume oil exploration activities in the state
Governor Zulum announced the breakthrough on Wednesday after hosting a high-level NNPCL delegation, led by Board Chairman Engr Ahmadu Musa Kida, at the Government House in Maiduguri.
The strategic meeting focused on bolstering energy development and jump-starting exploratory drilling within the Borno (Lake Chad) Basin
Governor Zulum noted that Borno possesses enormous commercial hydrocarbon potential and shares borders with three countries
He expressed optimism that resuming the exploration drive would fundamentally transform the state’s economy and unlock vast regional wealth
However, this renewed push for exploration in the Lake Chad Basin came at a time when President Bola Tinubu signed Executive Order 9, which halted the NNPCL from deducting the 30% Frontier Exploration Fund at source and redirected all oil and gas revenues into the Federation Account
The policy shift stripped the national oil company of its authority to manage or retain the 30% profit oil and gas allocation previously designated for frontier exploration under the Petroleum Industry Act (PIA)
Critics warn that altering the funding mechanism could slow down capital-intensive projects in northern inland basins, including Kolmani in the Gongola Basin, the Bida Basin, the Benue Trough, and Lake Chad
While welcoming the renewed oil exploration commitments, Governor Zulum did not shy away from pressing the NNPCL leadership on critical local infrastructure He voiced deep concern over the protracted delay in upgrading the Maiduguri Emergency Power Plant.
The Governor expressed dismay that despite necessary materials having been on-site for approximately two years, the critical project, designed to stabilize and improve electricity supply to Maiduguri and its environs, remains incomplete
He urged the NNPCL management to intervene decisively to ensure the swift completion of the plant, underscoring its direct impact on the socio-economic well-being of the state’s citizens
Responding on behalf of the delegation, Engr Kida assured Governor Zulum of the company’s readiness to fast-track the resumption of oil exploration in the Borno Basin.
He also promised to address the bottlenecks stalling the emergency power plant project, while commending the Governor for creating a secure and investment-friendly environment in the state