Arewa Economic Forum Advises FG on Boosting Nigeria’s Energy Security

Arewa Economic Forum Advises FG on Boosting Nigeria’s Energy Security

The Arewa Economic Forum (AEF) has advised the federal government to prioritize diversifying the country’s main source towards ensuring energy security.

An economic think-tank of intellectuals and business entrepreneurs from Northern Nigeria, AEF provided the advisory when its members paid a courtesy visit to the Minister of Information and National Orientation, Alhaji Mohammed Idris Malagi in Abuja.

Chairman of the Forum, Alhaji Ibrahim Shehu Dandakata, said that despite the nation’s developmental challenges, it is gratifying that the President Bola Ahmed Tinubu-led administration has recorded great strides in resetting the country’s economy and tackling insecurity, especially in the North.

Commending the federal Ministry of Information and National Orientation for continuously enlightening Nigerian citizens on government efforts to fix the nation’s economy, Dandakata pledged AEF’s commitment to offering valuable counsel to FG on key policies and programmes launched for the masses’ benefit.

He disclosed that their Forum has studied the recently developed “Executive Order on Oil and Gas Industry as Regards to Development of Resources in Frontier Basins”, and observed that some certain areas of the Order need to be reviewed for maximum economic results to be achieved.

In a presentation of their “Submission on the Executive Order on Oil and Gas Industry as Regards to Development of Resources in Frontier Basins,” Mr. Abdullahi D. Bomai, Head of Cluster of Oil/Gas and Solid Mineral in AEF, also highlighted the critical issues affecting Nigeria’s oil and gas sector.

He said: “Exploration activities in Northern Benue Trough led to the commercial discovery of hydrocarbons in the Nigerian frontier basin. At the moment, the presence of one billion barrels of oil and gas in Kolmani River has been confirmed through drilling.

“There is an inventory of Leads/Prospects that are being generated in frontier basins which have great chances of discovering additional volumes of oil and gas”.

Bomai however, reeled out the frontier exploration investment options available, and which the government and private sector may consider adopting to boost investment in the country’s oil and gas industry.

He said: “The first one is Government Direct Investment (GDI). This involves exploration to determine the presence of HC in frontier areas using the public funds. This is the option given in the PIA.

“We also have, the Multi-Client Studies (MCS). This involves working with geophysical companies to generate suite of high grade geological and geophysical data over large swaths of sedimentary areas and eventually delineating prospective areas and offering the data to interested companies at predetermined rates.

“There is also, the Public-Private Partnerships (PPP). This involves working with Exploration and Production (E&P) companies and geophysical companies to generate suite of high grade geological and geophysical data over large swaths of sedimentary areas.

“Another option is the Technical Evaluation Agreements (TEA). In this option, an Exploration and Production (E&P) company evaluates an area and identifies leads/prospects using conventional and unconventional methods.

“Equally, we have Nominations (Nm). In this option, Exploration and Production (E&P) company/Operator will propose areas of interest for collaboration”.

Responding, Alh. Idris appreciated the AEF delegation for the visit, saying the Tinubu administration is committed to championing critical reforms that will create an enabling environment for the growth of the country’s oil and gas sector.

By PRNigeria