NECO 2009 Economics · Question 17

Oil was first discovered in commercial quantity in ……….. State.

Options

  1. A.Amasoma, Bayelsa
  2. B.Bonny, Rivers
  3. C.Oloibiri, Rivers
  4. D.Igbokoda, Ondo
  5. E.Warri, Delta

Answer: C. Oloibiri, Rivers

Explanation written with AI and checked against the answer key

Analyze the question: It asks where oil was first discovered in commercial quantity in Nigeria.

Concept: Oil exploration in Nigeria was led by Shell-BP (then Shell D'Arcy). After years of searching, they struck oil in commercial quantity in 1956 at Oloibiri. Production and export began in 1958.

Working through the options:

  • A. Amasoma, Bayelsa: Amasoma is known as the location of the Niger Delta University. It is not where oil was first found.
  • B. Bonny, Rivers: Bonny is famous for its oil terminal (Bonny Light crude) and was the site of the first oil shipment export, not the first discovery.
  • C. Oloibiri, Rivers: This is where the first commercial well, Oloibiri-1, was drilled in 1956.
  • D. Igbokoda, Ondo: Oil has been found in Ondo's coastal areas, but not as the first discovery.
  • E. Warri, Delta: Warri is an important oil city with refineries, but not the site of the first discovery.

A note on the option wording: Oloibiri was in Rivers State when the question was set. Today, it is in Ogbia Local Government Area of Bayelsa State, since Bayelsa was created from Rivers in 1996. Among the options given, only Oloibiri is the correct place, so C is the answer.

Answer: C. Oloibiri, Rivers

Exam tip: Remember the phrase "Oloibiri 1956, Bonny 1958." Oloibiri was the discovery site (1956), and the first export left from the Bonny terminal (1958). If a question says "first discovered," pick Oloibiri. If it says "first exported," think of Bonny.

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