BENUE SOUTH (ZONE C) POISED FOR ECONOMIC TRANSFORMATION AS OIL EXPLORATION RETURNS TO OTUKPO, APA AND OKPOKWU
Benue South Senatorial District (Zone C), made up of Ado, Agatu, Apa, Ohimini, Ogbadibo, Okpokwu, Otukpo, and Obi Local Government Areas, is set to witness a new chapter in its economic history following the award of three frontier oil and gas prospecting blocks by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Although the licensed blocks are currently located within Otukpo, Apa and Okpokwu Local Government Areas, the development is expected to have far-reaching economic benefits across the entire Benue South Senatorial District, creating opportunities for investment, employment, infrastructure development and business growth.
During Nigeria’s 2025 Oil and Gas Licensing Round, the NUPRC awarded 37 oil and gas blocks to 31 companies after a competitive bidding process held in Abuja. Among the successful awards were three petroleum prospecting licences (PPL 800, PPL 801 and PPL 902) situated within Benue State, making the state one of Nigeria’s emerging frontier hydrocarbon investment destinations.
PPL 800, covering parts of Otukpo and Apa Local Government Areas within the Southern Benue Trough, was awarded to Dakoda & U Limited.
PPL 801, also located within the Southern Benue Trough, was awarded to Eyre Energy Limited.
Meanwhile, PPL 902, located within the Anambra Basin and covering Okpokwu Local Government Area, was awarded to South-borne Oil and Gas Limited.
The discoveries are backed by decades of geological evidence. Historic exploration wells drilled between the 1950s and 1960s—including Ocheku River-1, Adoka-1, Bopo-1, Okpaya-1 and Opiarum-1—confirmed the presence of hydrocarbon-bearing formations across parts of Benue South.
For residents of Ado, Agatu, Apa, Ohimini, Ogbadibo, Obi, Okpokwu and Otukpo, the renewed exploration signals the possibility of increased economic activities if commercial quantities of oil and gas are eventually confirmed.
Industry experts believe exploration activities could lead to seismic surveys, appraisal drilling, construction of support infrastructure, employment opportunities for local youths, business expansion and improved government revenue.
The development is also expected to stimulate economic activities across neighbouring communities in Zone C, especially through improved road networks, logistics services, hospitality businesses and other support industries that accompany oil and gas operations.
Under the Petroleum Industry Act (PIA) 2021, host communities where production eventually takes place may benefit through the Host Communities Development Trust, which provides funding for community development projects, social amenities and infrastructure.
However, the awarded blocks have not yet become final operating licences. The successful companies are expected to pay the required signature bonuses and obtain the approval of the Minister of Petroleum Resources before exploration activities can fully commence.
The NUPRC has also maintained its “drill or drop” policy, meaning companies that fail to develop the awarded assets risk losing their licences.
While only Otukpo, Apa and Okpokwu currently host the awarded oil blocks, stakeholders believe the success of exploration could position the entire Benue South Senatorial District (Zone C) as an emerging hub for energy investment, opening new opportunities for the people of Ado, Agatu, Apa, Ohimini, Ogbadibo, Obi, Okpokwu and Otukpo.
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