Ogun State is poised to be listed among Nigeria’s oil-producing states following federal approval for the commencement of commercial oil drilling at Eba, a development Governor Dapo Abiodun says will significantly boost the state’s revenue profile and economic prospects.
With the start of drilling activities, Ogun would become eligible for the 13 per cent derivation fund allocated to oil-producing states under Section 162(2) of the Nigerian Constitution. The statutory provision entitles such states to a share of revenue derived from natural resources within their territory.
Governor Abiodun disclosed the approval last Wednesday and elaborated on its implications over the weekend while receiving the Flag Officer Commanding, Western Naval Command of the Nigerian Navy, Rear Admiral Abubakar Mustapha, at the Government House in Oke-Mosan, Abeokuta.
According to the governor, the Eba axis also holds significant potential for bitumen extraction, further strengthening Ogun State’s position as an emerging hub for extractive and industrial activities.
He noted that the commencement of oil drilling is expected to create employment opportunities, stimulate economic activities in coastal communities, and generate additional funds for infrastructure development and social services across the state.
Abiodun described President Bola Tinubu’s approval of the project as a major breakthrough after years of anticipation, stressing that it represents a turning point in Ogun State’s economic history and long-term development strategy.
Beyond oil exploration, the governor also revealed renewed federal backing for the long-delayed Olokola Deep Seaport project. He said discussions around the port have intensified in recent weeks, with the President expressing strong commitment to ensuring its actualisation.
“Our proposed Olokola port, which has been on the drawing board for several years, is now back on the table,” Abiodun said, adding that several high-level meetings had already been held to move the project forward.
The renewed momentum around the port comes amid growing private sector interest in large-scale maritime infrastructure. In July 2025, President of Dangote Group, Aliko Dangote, announced plans to build what he described as the biggest and deepest seaport in Nigeria, further raising expectations around Ogun State’s strategic coastal assets.
If realised, the combined impact of oil production, bitumen extraction and a functional deep seaport could significantly reposition Ogun State as a key player in Nigeria’s energy, logistics and industrial landscape.