Northern Nigeria Development Company, NNDC, have announced plans to commence the exploration of oil and gas in the lake Chad area of Nigeria’s North-east by next year.
Speaking with newsmen shortly after the company’s Annual General Meeting in Kaduna, Chairman of the Board of Directors, Alhaji Bashir Mohammed Dalhatu said oil and gas blocks have been discovered in the North, but for security challenges in the North-east exploration will have gone far.”
Dalhatu revealed that the company was still able to post profit despite the political instability and activities of insurgents in northern parts of the country.
He said the continuous decline in government revenue which resulted in reduction of foreign reserves as well as devaluation of the Naira posed challenges to the operations of the NNDC.
The Board Chairman said despite the tough operating environment and the continuous security challenges, the company remained resolute and focused in realizing its objectives.
He disclosed that the operating income of the company increased by 42 percent from N651.2 million to N923.9 million while a 73 percent increase was recorded in operating profit before tax from N137.2 million to N237.2 million.
Dalhatu said further increases were recorded in earnings per share of 87 percent from 16.7 kobo to 31.2 kobo and 4.4 percent net assets per share from 14.1 to N18.5 when compared with results of the preceding year of 2014.
Meanwhile, a chieftain of the People’s Democratic Party, PDP, Chief Sunny Onuesoke has criticised President Muhammadu Buhari for allocating N39.4 billion for oil exploration in the Northern part of Nigeria, noting that the move amounts to “thinking backward.”
He said it was amazing for Nigeria to be allocating funds for oil exploration in arid Northern part of the country when the West and other parts of the world were embarking on renewable energy exploration.
The Northern Nigerian Development Company is a joint venture by the 19 northern state governments.