The recent discovery of hydrocarbon resources at Eba Island has ignited a significant jurisdictional dispute, with the Ogun State Government formally asserting its sovereign claim over the potentially lucrative territory. In a detailed statement, the state dismissed counterclaims from neighboring Ondo State as misleading, presenting a multifaceted argument rooted in constitutional law, historical documentation, and contemporary administrative validation. This dispute underscores the high economic stakes of resource discovery in Nigeria, where control over territory directly translates to future revenue streams, investment flows, and developmental potential for subnational governments.
The conflict emerged following presidential approval for drilling activities at an abandoned oil well on Eba Island. In response to a motion raised in the House of Representatives by an Ondo State legislator, Ogun State’s Special Adviser on Information and Strategy, Kayode Akinmade, issued a comprehensive rebuttal. The government’s position rests on several pillars: constitutional boundaries documented by the National Boundary Commission (NBC), historical records dating to a 1950 colonial gazette, and modern administrative evidence including polling unit registration under the Independent National Electoral Commission (INEC). Akinmade emphasized that the community’s status has remained unchanged since before Nigerian independence and through successive state creations, noting pointedly that “since 1976, there has been no constitutional amendment, judicial pronouncement or federal gazette that altered the boundary.”
From an economic perspective, Ogun State’s vigorous defense is a strategic move to secure a transformative asset. The confirmation of commercially viable oil reserves promises to substantially alter the state’s fiscal architecture, providing an independent revenue source beyond federal allocations and internally generated taxes. For a state strategically positioned as an industrial hub, hydrocarbon revenue could accelerate infrastructure development, fund social services, and enhance its creditworthiness for major development projects. The state government highlighted its proactive collaboration with federal entities like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NNPC Limited, which conducted due diligence confirming the site’s location within Ogun, to fast-track exploration and secure the site with naval assets.
This dispute, however, highlights a recurring economic challenge within Nigeria’s federal system: inter-state competition over natural resources. While the constitution vests mineral ownership in the federal government, the derivative revenue and associated benefits like the 13% derivation fund for producing states create powerful incentives for territorial claims. Such conflicts can delay resource exploitation, create investor uncertainty, and potentially escalate into community tensions that disrupt economic activity. Ogun State’s appeal for restraint and its reference to a failed 2024 request by an Ondo community leader to operate on the island underscore the real risk of conflict derailing economic progress.
The broader implication for Nigeria’s economy is the test of institutional frameworks for resolving resource disputes. A clear, evidence-based, and lawful resolution is essential to maintain investor confidence in the sector and ensure that new discoveries translate efficiently into national income. The Ogun State Government has positioned its argument firmly within these formal channels, citing federal agency validations and historical precedents. A protracted legal battle would benefit neither state, as it would stall development and defer the economic benefits of job creation, local contracting, and infrastructure spillovers that accompany oil and gas projects.
Ultimately, the Eba Island contention is a microcosm of the opportunities and complexities that resource wealth presents. For Ogun State, a successful claim could mark a pivotal economic evolution. For the nation, it reinforces the necessity for unambiguous boundaries, robust legal institutions, and cooperative federalism to harness natural resources for collective development. The state’s final declaration that “the facts are clear and the law is settled” is an invitation for all stakeholders to prioritize legal clarity and economic progress over divisive claims, ensuring that potential wealth serves as a catalyst for growth rather than a source of discord.
