Nigerian Firm Discovers Oil in Northern State of Nasarawa, Media Report

There are more than 225 million inhabitants of Nigeria. In terms of economy, Africa's most populous country predominantly relies on the petroleum sector. The country has 28.9% of the continent's oil reserves and 32.1% of its gas reserves, but the industry faces difficulties largely connected with security issues.

Oil has been discovered in the northern Nigerian state of Nasarawa, the Nigerian National Petroleum Company Limited (NNPCL) announced, as reported by the media.

The firm’s spokesman announced that it plans to spud the first oil well in the state in March 2023.

"This work must be done very fast because the whole world is walking away from fossil fuel due to energy transition, the earlier you go to market, the better for you," said Mele Kyari, the NNPCL’s group chief executive officer. "Otherwise, 10 years from now, no one will agree to put money in the petroleum business except it comes from your cash flow."

The NNPCL’s activities in the state are part of its broader exploration efforts, which also involve the northern states of Niger, Sokoto, Borno, Yobe, Adamawa, Bauchi, and Gombe, as well as Anambra in the south.

Earlier in January, it was reported that the company was inspecting more northern regions in search of petroleum, after discovering it in the states of Bauchi and Gombe.

The firm is conducting the exploration against the backdrop of a decline in Nigerian oil production and export, mainly attributed by the company to oil theft and vandalism. In 2022, the country lost its status as Africa’s top oil exporter to Angola.

Recently, it was reported that Nigerian liquefied natural gas (LNG)-producing corporation Nigeria LNG Limited had canceled a number of gas shipments due to pipeline vandalism. According to analysts, this came against the backdrop of Europe's growing reliance on Africa's natural resources, as Western countries sever economic ties with Russia over the Ukraine crisis.

Severe floods in 2022 are also named as a factor that has negatively affected the West African country's fossil fuel industry.