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.
