For weeks past, Nigeria has invested hugely in oil exploration in Chad Basin and the North Eastern part of Nigeria. President Buhari giving the order to the Group Managing Director, NNPC, Dr. Maikanti Baru, said the new directive was in line with the current efforts to guarantee energy security of the country.
As if that was not enough, Leaders from the 19 Northern State of the country corroborated the president’s effort. Earlier this week, a British firm was hired to continue the exploration.
These moves has been greeted with raised eyebrows as to the real motive of exploration while many ask rhetorically; after oil, what next?
Here are 6 things Nigerians should expect if oil is found in the north:
1. Biafra agitation will intensify
A laymen who shares in the cause of the Biafra nation will always posit that northern Nigeria find it hard to break up because of the benefit of oil wealth. However, if the recent exploration proves successful, Agitators in the south east will intensify their call for secession, taking as strong point the discovery of oil. They would say: ‘now that you have your oil, why not allow us be?
2. Nigeria will revisit allocation formulae
Just yesterday, Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed inspected oil wells in Lagos state for the purpose of disbursement of the 13 per cent Derivation Fund to the state in line with the Nigerian Constitution. If oil is found in the north, many more states will stake claim to the 13% derivative which the federal government may not be able to meet up with. Hence, the need to revisit the sharing formulae.
3. Power supply will improve
Due to the activities of militants in the Niger Delta region, power supply through the national grid dropped to a record low of 1500MW earlier in 2016. The country was thrown into darkness and the power generation companies complained of a low supply of gas. However, if oil is found in the north, the companies will enjoy more and steady supply, consequently improving power supply in the country.
4. Dangote will make move for partnership/control
When oil was not explored in his region, Africa's richest man, Aliko Dangote invested in the sector with plans to launch Nigeria's first private crude oil refinery by 2019. Therefore, it is safe to predict that he will make moves to be involved in the business if oil if found in the north.
5. Politicians will jostle for oil well ownership
Oil blocs in Nigeria are mostly owned by past politicians and it rakes in huge returns for their investment. If oil is found in the north, politicians mostly from the region and some of whom currently possesses oil blocs in the Niger Delta would want to extend their businesses.
6. Biafra will be allowed to go
Former Aviation Minister, Femi Fani Kayode in reaction to the exploration expressed fears that if oil is found in the north, leaders from the region would be the first to call for breakup of the country. This may be the case given the fact that the north east and north west will be more self-sufficient.
As if that was not enough, Leaders from the 19 Northern State of the country corroborated the president’s effort. Earlier this week, a British firm was hired to continue the exploration.
These moves has been greeted with raised eyebrows as to the real motive of exploration while many ask rhetorically; after oil, what next?
Here are 6 things Nigerians should expect if oil is found in the north:
1. Biafra agitation will intensify
A laymen who shares in the cause of the Biafra nation will always posit that northern Nigeria find it hard to break up because of the benefit of oil wealth. However, if the recent exploration proves successful, Agitators in the south east will intensify their call for secession, taking as strong point the discovery of oil. They would say: ‘now that you have your oil, why not allow us be?
2. Nigeria will revisit allocation formulae
Just yesterday, Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed inspected oil wells in Lagos state for the purpose of disbursement of the 13 per cent Derivation Fund to the state in line with the Nigerian Constitution. If oil is found in the north, many more states will stake claim to the 13% derivative which the federal government may not be able to meet up with. Hence, the need to revisit the sharing formulae.
3. Power supply will improve
Due to the activities of militants in the Niger Delta region, power supply through the national grid dropped to a record low of 1500MW earlier in 2016. The country was thrown into darkness and the power generation companies complained of a low supply of gas. However, if oil is found in the north, the companies will enjoy more and steady supply, consequently improving power supply in the country.
4. Dangote will make move for partnership/control
When oil was not explored in his region, Africa's richest man, Aliko Dangote invested in the sector with plans to launch Nigeria's first private crude oil refinery by 2019. Therefore, it is safe to predict that he will make moves to be involved in the business if oil if found in the north.
5. Politicians will jostle for oil well ownership
Oil blocs in Nigeria are mostly owned by past politicians and it rakes in huge returns for their investment. If oil is found in the north, politicians mostly from the region and some of whom currently possesses oil blocs in the Niger Delta would want to extend their businesses.
6. Biafra will be allowed to go
Former Aviation Minister, Femi Fani Kayode in reaction to the exploration expressed fears that if oil is found in the north, leaders from the region would be the first to call for breakup of the country. This may be the case given the fact that the north east and north west will be more self-sufficient.