NNPCL commits to resuming oil exploration in Borno State

The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to resume oil exploration activities in Borno State and construct a solar power plant to enhance the region's energy infrastructure. During a Wednesday meeting at the Government House in Maiduguri with Governor Babagana Umara Zulum, Board Chairman Engineer Ahmad Musa Kida revealed these plans. The meeting was attended by top management from the national oil company and focused on revitalising energy development and economic growth in the state.

Background

NNPCL had previously initiated oil exploration prospecting in the Magumeri area during the last administration but suspended these activities before the recent announcement. The proposed projects aim to improve access to electricity for residents and businesses, attract investment, and create employment opportunities. Governor Zulum described the resumption of exploration as a strategic opportunity to unlock Borno’s hydrocarbon potential, noting that the state possesses significant commercial opportunities and shares borders with three countries. He assured the NNPCL delegation of the state government’s support for both the oil prospecting and the renewable energy project. The governor highlighted that reliable electricity is essential for restoring livelihoods, supporting small businesses, and improving healthcare and educational services, particularly as the state recovers from years of insurgency. He also noted that solar power could extend electricity to rural communities where conventional infrastructure is difficult or expensive to develop.

The meeting took place against the backdrop of recent federal policy changes. Executive Order 9, recently enacted by President Bola Tinubu, stopped NNPCL from withholding the 30 percent Frontier Exploration Fund and instead routed all petroleum income to the Federation Account. Under the Petroleum Industry Act, this regulatory change stripped the national oil firm of its previous right to control or keep the 30 percent profit share earmarked for frontier exploration. Opponents caution that modifying this financial structure might hinder major investments in northern inland regions, such as the Borno (Lake Chad) Basin, Kolmani in the Gongola Basin, the Bida Basin, and the Benue Trough.

Why it matters

The resumption of oil exploration and the development of solar power are expected to significantly impact Borno State’s economy and energy resilience. Governor Zulum voiced significant worry regarding the long-standing postponement of upgrades to the Maiduguri Emergency Power Plant, a vital facility intended to stabilize power distribution in the state capital and surrounding areas. He expressed regret that essential supplies have sat idle at the construction site for nearly two years while the modernization work remains unfinished. The governor called on NNPCL leadership to take firm action to guarantee the rapid finishing of the facility, highlighting how its operation directly affects the economic and social welfare of residents. In response, Engineer Kida assured the governor that the company was ready to fast-track the resumption of oil exploration and address the bottlenecks stalling the emergency power plant project. Additionally, he praised the Borno State Government for its progress in building infrastructure and enhancing security, noting that these achievements have encouraged visitors and organizations to consider doing business in the region.