Ogun State Set to Enter Nigeria’s Oil League, Governor Announces
The Executive Governor of Ogun State, Prince Dapo Abiodun, has unveiled plans for the state to soon join the ranks of oil-producing states in Nigeria.
Presenting the 2024 Appropriation Bill, named the “Budget of Sustained Growth and Development,” at the Ogun State House of Assembly, Governor Abiodun declared that Ogun State would soon be accorded frontier status in recognition of its foray into oil production.
Governor Abiodun highlighted the establishment of the Ministry of Mineral Resources, tasked with overseeing and controlling natural resources in the state, as a key step towards this new venture.
Additionally, he noted the creation of the Ministry of Energy, seizing the opportunity provided by a constitutional amendment allowing state governments to participate in the energy sector.
The governor revealed ongoing discussions regarding oil exploration in Tongeji Island, Ipokia Local Government Area, and Olokola, in Ogun Water-Side Local Government Area.
He expressed confidence that the state would soon be granted frontier status, marking its official entry into the league of oil-producing states in Nigeria.
While Nigeria’s existing oil-producing states have experienced a notable increase in revenues from the sector, a recent report by Nairalytics, the research arm of Nairametrics, revealed a corresponding surge in their collective debt.
In the first half of 2023, these states received N544.9 billion as part of the 13% oil derivatives share from the federal government, reflecting a 44.2% increase compared to the corresponding period in 2022.
Despite the additional funds, the nine oil-producing states witnessed a collective debt rise of N465.4 billion in just six months.
Data from the Debt Management Office (DMO) indicated an increase in their total debt stock from N1.86 trillion in December 2022 to N2.33 trillion by the end of June 2023.
This surge was attributed to the revaluation of external debt and the acquisition of new loans.
Source: Nairametrics
