New oil exploration licences for operations in Northern Nigeria have been signed by President Bola Ahmed Tinubu, with the approval to explore more oil outside the traditional southern regions.
The licenses were issued to the Nigerian National Petroleum Company Limited (NNPCL) and other private sector partners to explore new oil fields in the Gongola Basin and Lake Chad regions, both in the North-East and North-Central.
The move comes in response to Tinubu’s vision to diversify Nigeria’s petroleum resources and create economic activity in untapped areas. The action will create jobs, according to the authorities, drive investment, and reduce regional disparities in economic development.
The Nigerian Upstream Petroleum Regulatory Commission confirmed that all environmental studies and legal procedures were completed before the issuing of licences.
Flashback:
Efforts to find oil in the North have gone on for decades. Drilling began in parts of Bauchi and Gombe states in 2019 with initial findings appearing encouraging. Even the former President Muhammadu Buhari also brought immense pressure for oil exploration in the region as a way of balancing national resources.
Now, Tinubu’s administration is driving it further with large-scale licensing for development and exploration, writing a new chapter in the history of Nigeria’s oil.
Others are sounding the cautionary note. Environmentalists have warned against the risk of drilling in environmentally vulnerable areas, especially around Lake Chad, which has already suffered from climate change as well as loss of water.
Its advocates aver that with proper regulation, the North can become a major player in Nigeria’s oil industry. Its advocates argue that this could relieve the pressure on Niger Delta oil fields and increase the revenue base for the government.
The government asserts that it will ensure that the host communities benefit from the project through the Host Communities Development Fund as required under the Petroleum Industry Act.
Overall, President Tinubu’s blessing is a key milestone in Nigeria’s expanding oil map, with the North set to soon join in developing the country’s energy future.
