Governor Abdullahi Sule has directed the newly inaugurated Advisory and Technical Committee on Oil and Gas in Nasarawa State to actively pursue the realization of the state’s oil and gas potential.
He issued these directives during the committee’s inauguration at the Government House on Friday.
Governor Sule highlighted that recent studies have indicated that fully harnessing Nasarawa State’s rich hydrocarbon resources could potentially increase Nigeria’s oil reserves from 37.1 billion barrels to 50 billion barrels and boost daily crude oil production to 3 million barrels.
The main objective of establishing the committee, he noted, is to develop strategies for effective collaboration with the Nigerian National Petroleum Company Limited (NNPCL) and other key stakeholders, including development partners, to ensure the smooth execution of the project and to facilitate community involvement.
Governor Sule also mentioned that the NNPCL conducted several exploratory activities in the state back in 2010, leading to significant discoveries of hydrocarbon deposits in the Obi and Keana Local Government Areas. This led to the commissioning of the Ebenyi-A oil well in Obi by former President Muhammadu Buhari in March 2023.
“As you are aware, the oil and gas industry has continued to take center stage in the economy of our country. This is in spite of the efforts of the government to diversify into agriculture, solid minerals, and other sectors of the economy as alternative sources of revenue. Available reports indicate that the oil and gas sector contribute 65 percent of the government revenue and really 85 percent of Nigeria’s foreign exchange earnings.
“It’s for this reason that government and other key actors in the Nigerian economy have continued to prioritize the sector in order to maximize investment opportunities and sustain growth for the benefit of our dear country,” he stated.
He emphasized that establishing this crucial committee is essential for the state to capture all the associated benefits of these projects, which include wealth creation, employment opportunities, revenue generation, and economic growth.
“I am happy to state that the discovery of oil and gas and its subsequent exploration and exploitation will further boost the economic prosperity of our dear state and put us among the committee of the oil producing states in the country.
“Let me also add that, we received a study that showed that the quantum of the reserve in Nasarawa State will further increase the national hydrocarbon reserves to about 50bn barrels while increasing the country’s oil production capacity to roughly about 3m barrels per day,” he said.
He stressed that, motivated by the goal to maximize the benefits of this project, his administration found it crucial to take proactive steps to position the state advantageously for oil and gas exploration activities.
Governor Sule noted that the members of the advisory and technical committee on oil and gas were chosen for their extensive experience, professionalism, and versatility in the global oil and gas sector, as well as their resourcefulness and distinguished track records.
“From the resume of the appointees, I don’t think there is any one person that we would add to the committee to make it better. You have the accountants, lawyers, and engineers. I think this is one of the most competent committees that we have ever had,” he added.
He therefore charged members of the committee to leave above board and justify the confidence the government and people of Nasarawa State reposed in them.
He also called on the host communities to take ownership of the project and to see it as their own.
“I am happy that traditional rulers and other stakeholders are here to ensure that the safety of this project depends on you. The success of this project depends on the peace that we have in that area. You have to ensure not only the protection of the project but the people working on the project. This is the only way we can derive the maximum benefit of the project,” he said.
The Governor reiterated the commitment of his administration to continue to put industrialisation and investment at the front burner in order to improve the revenue generation capacity and to accelerate the pace of development in the state with a view to compete with order developed states in the country.
He said the committee is to be guided by the following terms of reference: “Constant liaison with the NNPCL to ensure seamless execution of the project. Liaison with other relevant stakeholders in the oil and gas sector, especially the technical partners.
“To monitor and facilitate compliance with all the oil and gas laws, including seamless compensation to the host communities. To facilitate the execution of corporate social responsibilities of host communities in the state. To develop appropriate partnership and investment for the realization of the project for the mutual benefit of the state and the investors of the project.
Also, “To determine the Nasarawa State participation in the form of investment in the project through shareholding of government and individuals for the overall development of the state, to carry out other responsibilities as maybe necessary but ensuring the safety of this project.”
In a vote of thanks, Dr. Hussain Kasim, Chairman of the Advisory and Technical Committee on Oil and Gas in Nasarawa State, characterized the moment as pivotal in the state’s history and expressed gratitude to Governor Sule for the trust placed in them through their appointments.
Dr. Kasim, who has over 30 years of experience in the oil and gas industry and traveled from Houston, Texas for this role, praised the Governor for his visionary leadership and steadfast dedication to the state and its natural resources, which he noted are steering Nasarawa State towards sustainable progress and holistic development.
In his opening remarks, the Secretary to the Government of Nasarawa State, Barrister Mohammed Ubandoma Aliyu, noted that since the inception of his administration, Governor Sule has been actively implementing strategies to transform the state through boosted economic activities for socio-economic development.