By Matthew Otabe
For decades, Benue State has been celebrated as Nigeria’s “Food Basket of the Nation,” renowned for its vast agricultural potential and rich fertile land. While farming has remained the backbone of its economy, another story has quietly been buried beneath its soil—a story of hydrocarbon resources first hinted at more than seven decades ago but left largely unexplored.
Today, that story is finally taking shape.
Benue has officially joined the ranks of Nigeria’s oil-producing frontier states following the award of three Petroleum Prospecting Licences (PPLs) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) during the 2025 Licensing Round. The development signals not only a historic breakthrough for the state but also a significant expansion of Nigeria’s upstream petroleum industry into inland frontier basins.
The licences—PPL 800, PPL 801 and PPL 902—cover strategic areas in Otukpo, Apa and Okpokwu Local Government Areas, stretching across the Southern Benue Trough and the Anambra Basin.
Dakoda & U Limited secured PPL 800, which spans parts of Otukpo and Apa LGAs. Eyre Energy Limited was awarded PPL 801 in the southwestern section of the Southern Benue Trough, while South-borne Oil and Gas Limited emerged as the successful bidder for PPL 902 located in the Anambra Basin with its surface footprint in Okpokwu LGA.
A Dream Decades in the Making
Although the announcement has sparked fresh excitement, Benue’s petroleum story did not begin in 2025.
The state’s hydrocarbon potential dates back to the colonial era when multinational oil companies carried out exploratory drilling between 1954 and 1967. During that period, Shell and TotalEnergies drilled five exploratory wells across what is now the Southern Benue Trough and the Anambra Basin.
Among the most significant was the Ocheku River-1 well in today’s PPL 800, drilled to approximately 6,020 feet. Another notable exploration effort was the Opiarum-1 well located at Opialu Village in present-day Okpokwu Local Government Area within PPL 902, drilled as far back as 1955.
Despite those early discoveries, commercial development never materialised. The wells became relics of unrealised expectations, while attention shifted almost exclusively to the Niger Delta, where Nigeria’s oil wealth was rapidly expanding.Seven decades later, the same geological formations are attracting renewed investor confidence.
Renewed Interest in Frontier Basins
The NUPRC has described the 2025 Licensing Round as historic because it reflects growing commercial interest in frontier inland basins that were once considered high-risk exploration areas.
Out of the 37 petroleum assets awarded nationwide, 15 are located within frontier basins, including the Benue Trough. The outcome demonstrates increasing confidence in Nigeria’s efforts to diversify exploration beyond traditional oil-producing regions.
Industry experts believe advances in seismic technology, improved geological understanding and a more stable regulatory environment have significantly enhanced the commercial attractiveness of inland basins.
However, regulators have made it clear that acquiring licences is only the beginning.
Under the Commission’s strict “drill or drop” policy, licence holders are expected to commence exploration within stipulated timelines or risk forfeiting their assets. The policy is intended to discourage speculative licence acquisitions and ensure that exploration activities translate into actual investments and production.
The awarded licences will only become effective after the payment of signature bonuses and the receipt of ministerial approval.
Beyond Oil: What Benue Stands to Gain
Should exploration lead to commercial oil production, the implications for Benue could be transformative.
Beyond petroleum revenues, communities in Otukpo, Apa and Okpokwu are expected to benefit from infrastructure development, improved road networks, healthcare facilities, educational investments and employment opportunities associated with exploration and production activities.
The Petroleum Industry Act (PIA) 2021 further strengthens these prospects through the Host Communities Development Trust, which guarantees direct benefits for communities hosting petroleum operations.
If properly implemented, the framework could help reduce social tensions, encourage local participation and ensure that oil wealth contributes to sustainable community development.
For many residents, the announcement represents more than the discovery of hydrocarbons—it offers hope for industrial growth, youth employment and increased private sector investment in a state that has historically depended on agriculture.
Balancing Agriculture and Energy
While optimism is widespread, experts caution that Benue’s emergence as an oil-producing state should complement—not replace—its agricultural identity.
The state’s fertile land remains one of its greatest comparative advantages. Sustainable development will therefore require careful planning to ensure that petroleum activities do not undermine food production or damage the environment.
Lessons from established oil-producing regions underscore the importance of strong environmental safeguards, transparent governance and responsible resource management from the outset.
If managed effectively, Benue could demonstrate that agriculture and energy development can coexist, creating a more diversified and resilient economy.
A New Economic Identity
Benue’s entry into Nigeria’s upstream petroleum industry marks one of the state’s most significant economic milestones since its creation.
For decades, evidence of hydrocarbons lay beneath the Benue Trough, waiting for renewed investment and improved technology to unlock its potential. The award of the three prospecting licences has revived that long-dormant promise.
Whether the optimism translates into commercial discoveries will depend on successful exploration, regulatory compliance and sustained investment. Yet, even at this early stage, the significance is unmistakable.
Benue is no longer viewed solely as Nigeria’s food basket. It is emerging as a frontier energy destination with the potential to reshape its economic future, attract new investments and redefine its place in Nigeria’s evolving energy landscape.
The journey from exploration to production may still be long, but for Benue State, a new chapter has unmistakably begun.
Otabe is the CEO and Publisher of FirmNews
