Ogun State Joins Nigeria’s Oil-Producing League: NNPCL Kicks Off Commercial Operations at Eba

 

​A historic shift is underway in Nigeria's energy landscape as Ogun State officially prepares to join the league of oil-producing states. This follows a high-level technical inspection of the Eba oil well in the Ogun Waterside Local Government Area by the Nigerian National Petroleum Company Limited (NNPCL). Sanctioned by President Bola Ahmed Tinubu, this move marks a significant departure from the traditional reliance on the Niger Delta, signaling a new era of economic prosperity and industrial growth for the "Gateway State."

​The Eba Field Milestone: From Discovery to Drilling

​The transition to commercial oil production at Eba is the result of years of geological surveys and technical due diligence. A specialized team from NNPCL, led by Hussein Aliyu (Project Coordinator for Enserv), recently evaluated the site alongside representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and national security agencies. Their mission was clear: confirm the operational readiness of the Eba wellhead and surrounding infrastructure for immediate drilling activities.

​Geological reports have long confirmed the presence of significant hydrocarbon deposits within the coastal corridor of Ogun Waterside. Following President Tinubu’s approval for commercial exploration, the NNPCL has moved swiftly to deploy the necessary technical capacity. This site, which has been secured by naval personnel for over 18 months, is now poised to become a central hub for Nigeria's frontier basin development.

​Economic Impact: 13% Derivation and Local Growth

​For Ogun State, the commencement of oil production at Eba is more than just an energy milestone; it is a financial game-changer. Governor Dapo Abiodun has highlighted that this development will make the state eligible for the 13% Derivation Fund, a federal revenue allocation reserved specifically for oil-producing regions.

​Beyond federal allocations, the project is expected to:

• ​Stimulate Industrialization: Provide a steady energy source for local industries and the proposed Olokola Deep Seaport.
• ​Create Employment: Generate thousands of direct and indirect jobs for the youth in coastal communities.
• ​Attract Infrastructure: Draw increased federal presence, leading to better roads, healthcare, and security in the Ogun Waterside axis.

​Governor Abiodun described the development as a "landmark achievement" that will transform the state’s coastal communities into a bustling economic zone, effectively diversifying the state's revenue base away from its current industrial and internal tax strengths.

​Security and Territorial Integrity

​The path to this discovery has not been without its challenges. The Ogun State Government recently reaffirmed its jurisdiction over Eba Island following territorial claims from neighboring Ondo State. Using advanced geospatial and cartographic technology, the state government independently verified that the oil well coordinates fall squarely within Ogun State's boundaries—a position supported by the National Boundary Commission (NBC) and the NNPCL’s own due diligence.

​To safeguard this national asset, the Nigerian Navy has established a strong presence in the area. This security framework ensures that the commencement of commercial operations is protected from the threats of vandalism or cross-border infiltration, providing a stable environment for international and local investors.

​Conclusion: A New Frontier for Nigerian Energy

​The NNPCL’s move toward commercial production at Eba represents a strategic win for Nigeria’s "Agenda 2063" and the broader goal of energy diversification. As Ogun State prepares to hoist its flag among the oil-producing states, the focus shifts to environmental sustainability, community engagement, and the smooth rollout of drilling operations. For Nigerians, the Eba field is a beacon of hope, proving that the nation's mineral wealth extends far beyond its traditional borders.