What the Approvals Mean for Ogun State
1. Commercial Oil Drilling at Eba, Ogun Waterside
Governor Prince Dr. Dapo Abiodun has disclosed that President Tinubu has authorised the start of commercial oil drilling operations in Eba, located within the Ogun Waterside Local Government Area. This development is historic: it positions Ogun State on the path to officially joining the league of oil-producing states in Nigeria — a status that carries significant economic promise.
For decades, Ogun State was not traditionally viewed as an oil producer compared with the Niger Delta states. However, recent explorations and geological surveys around Tongeji Island and Eba have shown promising hydrocarbon deposits. The approval signals the transition from exploration to commercial production, with oil drilling expected to stimulate activity in ancillary industries and create thousands of direct and indirect jobs.
Beyond job creation, revenue streams from crude oil extraction — including royalties, taxes, and shared profits — can contribute to the state’s Internally Generated Revenue (IGR) and strengthen public finances for infrastructure and services.
2. Olokola Deep Seaport: The Blue Marine Economic Zone
Simultaneously, President Tinubu has authorised the Olokola Deep Seaport project to move forward immediately. This long-deferred initiative, now designated the Blue Marine Economic Zone, aims to become a major maritime infrastructure hub along Nigeria’s southwestern coast.
Strategically positioned in Ogun Waterside, roughly 100 kilometres from Lagos, the seaport is designed to decongest Nigeria’s overloaded ports — particularly Apapa and Tin Can Island — which currently handle over 80% of the nation’s imports. Congestion at these facilities causes massive delays, high logistics costs, and revenue losses, prompting calls for alternative gateways.
The port’s strategic advantage lies in its integration with the ongoing coastal road project, which offers a new logistics corridor and faster inland access. This can significantly reduce transit times, open new trade routes, and attract foreign direct investment (FDI) into Ogun and neighbouring regions.
Economists suggest that deep-sea ports like Olokola could transform regional commerce — acting as logistics hubs for exports, imports, industrial zones, and manufacturing clusters. Similar projects across Africa have shown that such infrastructure can generate tens of thousands of jobs, attract billions in investment, and elevate state GDP figures.
Security, Infrastructure, and Local Development
Recognising the strategic importance of these developments, the Nigerian Navy has upgraded its presence on Tongeji Island to a Forward Operations Base. This expanded naval footprint aims to protect emerging economic activities, safeguard maritime borders, and curb criminal threats — including piracy and illegal oil bunkering — that often challenge coastal economies.
Governor Abiodun has also reiterated his administration’s commitment to improving living conditions for coastal communities. This includes supplying basic amenities, leveraging revenues from new projects for social services, and deepening collaboration with security agencies to maintain peace and stability.
Why Antitrust and Regulatory Safeguards Are Critical Now
With Ogun State on the verge of an **economic leap — from agriculture and trade to oil and seaport logistics — there’s a pressing policy imperative: the state must avoid repeating historical mistakes where dominance by a single corporate interest leads to concentration of power, reduced competition, and public disadvantage.
The Risk of a “Monopoly Trap”
History teaches that when infrastructure — especially strategic assets like oil fields and ports — is controlled by a single dominant corporate group, economies can quickly become dependent on that entity. Regulation then reacts too late, and market dominance becomes entrenched. This can lead to:
Price setting power over local markets
Control of logistics and trade routes
Disadvantageous policy influence
Reduced opportunities for local SMEs and competitors
This pattern is not unique to transport or resource sectors; it has recurred globally in sectors where market competition is weak and regulatory oversight is lagging.
Global Lessons: Structural Separation Works
In mature economies, antitrust and competition laws ensure that no single actor dominates critical infrastructure without checks and balances. Structural separation — where ownership of production facilities (e.g., oil fields), processing infrastructure (e.g., ports), and logistics businesses are not concentrated within one corporate group — is a common safeguard to protect market health and public interest.
For Ogun State, this means:
🔹 Structural separation: No single company should simultaneously control both offshore oil production and port logistics infrastructure, whether directly or through subsidiaries.
🔹 Ownership caps: Limits on how much of the state’s strategic infrastructure any one entity can own across sectors.
🔹 Golden share rights: A special class of shares held by the government that enables veto power over mergers, asset transfers, and decisions that could create monopolistic dominance.
🔹 Non-exclusive access: Ensuring pipelines, storage facilities, and port terminals remain open to multiple licensed operators under transparent tariffs.
🔹 Independent regulator: Establishing a strong, autonomous coastal economic regulator with enforcement and breakup powers to prevent anticompetitive conduct.
🔹 Community equity stakes: Giving coastal and host communities real ownership shares, not token compensation, so they benefit materially from economic growth.
🔹 Transparency of ownership: Mandatory disclosure of beneficial ownership to prevent political capture and hidden cartelization.
These aren’t anti-investment rules. They are trust enhancers — making Ogun State not just open for business, but fair for business, competition, and local prosperity.
A Fork in the Road for Ogun
Ogun State stands at an inflection point. If it manages oil production and port infrastructure with competitive markets, transparent governance, and strong regulatory frameworks, it can become a model for balanced coastal development. This would mean:
✔ Multiple investors, reducing single-entity risk
✔ Increased jobs and entrepreneurship
✔ Enhanced state revenue without vulnerability
✔ Empowered local communities
Conversely, neglecting antitrust foresight risks creating an economic ecosystem where one dominant interest controls pricing, policy, and commerce — reducing opportunities for others and limiting broad-based development.
Conclusion: Balanced Growth Requires Guardrails
The President’s approval of commercial oil drilling in Ogun Waterside and the Olokola Deep Seaport’s immediate take-off represents a bold step toward economic transformation. These initiatives can usher in new eras of inclusion, industrialisation, and global trade participation for Ogun State.
However, growth without guardrails is not real development. Strategic policies that ensure competition, equitable access, and balanced market power are critical to protect public interest and long-term prosperity.
Ogun’s future can be bright — but only if strategic infrastructure powers not just profits, but people.
0 Comments