The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has assured Kogi State Governor Usman Ododo of the Nigerian Government’s commitment to support the state in enhancing its oil production capabilities. This assurance came during the governor’s visit on Wednesday.
Lokpobiri highlighted the importance of the Frontier Basin Fund, which will be utilized to ramp up exploration activities in Kogi State. He emphasized the government’s goal of achieving a production target of two million barrels per day by the end of this year, with aspirations to reach 2.5 million barrels per day next year.
“Kogi State is already an oil-producing state. The derivation funds are contingent on production levels, and Kogi has entered the league of oil-producing states. Our focus now is to collaborate with the Kogi State government to leverage the Frontier Exploration Fund for necessary seismic studies and exploration, which could uncover more oil fields in the state,” Lokpobiri explained.
He noted that a lack of exploration work in recent years has hindered reserve growth, but with the implementation of the Petroleum Industry Act and new government policies, investments are beginning to flow back into the oil sector.
Governor Ododo, in his remarks, appealed for federal support to boost oil exploration in Kogi, stressing the need to harness the state’s natural resources to fund development initiatives. He pointed out that the state had received a meager N7.8 million once from the 13% Derivation Fund, contrasting this with the significant revenues enjoyed by oil-producing states in the South-South region.
“We acknowledge that while we are classified as an oil-producing state, our actual production has been hampered by insecurity. However, we have made strides in restoring peace, and we believe that with continued support from the Federal Government, we can fully exploit our resources,” Governor Ododo stated.
The state’s Commissioner for Finance and Economic Development Asiwaju Asiru Idris, reiterated the need for federal intervention, expressing hope that Kogi could eventually share in the substantial revenues enjoyed by other oil-producing states.
