Increasing Ndokwa Nation’s Contribution To Delta State Economy: Call For Oil Production Quantum Review (Open Letter)

As one of Delta State’s most resource-rich regions, Ndokwa Nation has long contributed to Nigeria’s oil and gas sector and it can do more.

According to the Social Contract Theory, governments derive legitimacy from ensuring equity and justice, fostering cooperation and economic progress.

In essence, addressing historical marginalization of the Ndokwa nation as it pertains to reward and recognition based on its economic resources will further amplify and encourage the region’s active contribution to Delta State’s economy.

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By equitably allocating resources and recognizing Ndokwa’s contributions, the government will deepen the trust that exists, reduce social unrest, and create a stable environment for growth. This reciprocity will ensure that an increasing regional development and enhanced state prosperity that benefits all stakeholders.

Unfortunately, despite its immense contributions and potential, the region continues to grapple with an underwhelming share of benefits from its natural resources.

Now, more than ever, the time is ripe for Ndokwa’s oil quantum allocation to be reviewed and for a focused strategy to position the region as a leader in clean energy innovation.

It is on this strategic note that Save Ndokwa Nation Group,SNNG is making this appeal to His Excellency, Governor Sheriff Oborevwori to champion this cause and leave a transformative legacy for Delta State.

Your Excellency, permit me to provide a brief background on the history of under appreciation and marginalization of the Ndokwa people.

You will recall that Ndokwa Nation’s recognition as an oil-producing area was established in 2003, with the allocation of a 9% derivation quantum. This milestone came after years of persistent advocacy from dedicated local and community organizations advocating for equitable revenue distribution for host communities.

While the 9% allocation was deemed a win at the time, it has since become a point of contention. Experts locally and internationally agrees that the figure does not reflect Ndokwa’s current oil production output, especially considering the massive growth in exploration and new discoveries over the last two decades.

For instance, when Ndokwa was granted its 9% quantum in 2003, its recognized oil assets were limited to key fields, such as Okpai Field which was Operated by Nigeria Agip Oil Company (NAOC), and till today remains one of the largest contributors to Nigeria’s gas infrastructure.

Also, there was the Kwale Field, another significant field managed by NAOC, with extensive oil and gas operations. Then, we also have the Aballa Field. Though smaller, it played a critical role in establishing Ndokwa as a viable oil-producing region.

Your Excellency, it will interest you to know that since then, over 30 new oil wells have been discovered in Ndokwa, marking a dramatic increase in its contribution to Nigeria’s daily oil production.

This includes expansions in the Okpai and Kwale fields and additional reserves identified by operators such as Seplat Energy and Sterling Oil Exploration and Energy Production Company (SEEPCO).

Sir, following these discoveries, the region has also witnessed the establishment of more oil companies actively operating in Ndokwa, including Nigeria Agip Oil Company (NAOC); a key player in oil and gas production in Nigeria. We also have Seplat Energy, which has consistently over the years expanded its footprint in marginal fields across Ndokwa.

The Pillar Oil is another company that has since moved into the region contributing to the growth of the local economy. There is also SEEPCO, which is aggressively expanding exploration and production activities as well as Newcross Petroleum, a newer entrant making strategic investments in the region.

Astonishingly, from fewer than three operators in 2003, Ndokwa now has over seven active oil companies, with exploratory licenses granted to others. Despite this, the 9% allocation remains static, overlooking Ndokwa’s growing importance in the energy sector.

At this juncture, permit me to quote the renowned management consultant, Peter Drucker who said, “the best way to predict the future is to create it.”

I am delighted to remind Your Excellency that you can predict the future of Delta state by increasing the contribution of Ndokwa nation to Delta state economy through increased oil quantum allocation for Ndokwa nation.

This is crucial as it has been established that the Ndokwa nation is uniquely positioned to lead Delta State and Nigeria into a clean energy future. With its vast natural gas reserves, the region will evidently become a cornerstone in Nigeria’s energy transition efforts.

As a matter of fact, there are some notable achievements and opportunities that points to this fact. For example, the Okpai Independent Power Plant, which is a gas-fired power plant generating significant electricity for the national grid is powered by gas from Ndokwa fields.

More so, there are increasing Gas-to-Power Initiatives in the region with public-private collaborations exploring ways to maximize the use of Ndokwa’s gas for domestic and industrial energy needs.

Nevertheless, realizing these opportunities will require robust collaboration between the public and private sectors supported by the office of the Governor. With the benefit of hindsight, we are confident that strategic partnerships with relevant stakeholders can drive sustainable development in Ndokwa and by extension Nigeria power landscape. To begin with, the Federal Ministry of Petroleum Resources and the Delta State Government can collaborate on policies to review Ndokwa’s quantum allocation and fund infrastructure development.

Most importantly, the Nigerian Content Development and Monitoring Board (NCDMB) can recommit to ensuring that local content policies benefit Ndokwa residents. Even as Oil and Gas Operators like NAOC, Seplat, and SEEPCO can be encouraged to invest more in community development and clean energy projects.

Your Excellency, Ndokwa Nation stands at a crossroads. The region’s immense contributions to Nigeria’s oil and gas sector cannot continue to be undervalued. As Governor of Delta State, your administration has the opportunity to champion a comprehensive review of Ndokwa’s oil quantum allocation and position the region as a model for sustainable energy development.

By advocating for increased derivation revenue, investing in clean energy projects, and fostering robust public-private partnerships, you can unlock the full potential of Ndokwa Nation. This would not only transform the region but also solidify your legacy as a leader who brought equity, innovation, and sustainable development to Delta State.

Com. Marcus Enudi,
Cordinator,
Save Ndokwa Nation Group,
SNNG

Comrade Afam Oseji,
Secetrary,
Save Ndokwa Nation Group ,
SNNG.

CC;
His Excellency Chief Monday Onyeme
Senator Prince Ned Nwoko
Hon Nnamdi Ezechi
Hon. Fidelis Tilije
Chief Festus M Ochonogor
Possible Ajede Esq
Chief Chief Obi Nzete