Tinubu Greenlights Licenses to Revive Kolmani Oil Project in Northern Nigeria

 In a significant boost to Nigeria’s energy sector, President Bola Tinubu has approved all regulatory licenses required to advance the Kolmani Integrated Development Project, a multibillion-dollar oil exploration initiative straddling Bauchi and Gombe states. Announced on May 18, 2025, this decision aims to unlock the North’s hydrocarbon potential, marking a pivotal step toward economic diversification and regional development.

The Kolmani Integrated Development Project, first inaugurated in November 2022, targets the Kolmani River II oil field in the Gongola Basin of the Upper Benue Trough. The project, a joint venture between the Nigerian National Petroleum Company Limited (NNPC), Sterling Global Oil, and New Nigeria Development Company, seeks to tap an estimated 1 billion barrels of crude oil and 500 billion cubic feet of gas.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, revealed the license approvals during the flag-off ceremony for the Bauchi Oil and Gas Academy’s permanent site in Alkaleri, Bauchi State. He emphasized that the move aligns with Tinubu’s goal to activate all hydrocarbon platforms to boost Nigeria’s oil production, currently at 1.7 million barrels per day, toward a 2027 target of 2 million barrels.

The licenses cover critical regulatory requirements, including environmental permits, drilling authorizations, and operational clearances, which had delayed progress since the project’s launch. The NNPC, under Group Chief Executive Bayo Ojulari, plans to resume drilling in 2025, following a $1.4 billion funding agreement secured in 2022 with Standard Chartered Bank and United Bank for Africa. The project also includes plans for a 120,000-barrel-per-day refinery, a 300-megawatt power plant, and a fertilizer plant, expected to create 10,000 direct jobs and 50,000 indirect jobs in Bauchi and Gombe. Additionally, the Ajaokuta-Kano gas pipeline, a 614-kilometer project, will connect Kolmani’s gas output to northern industries, reducing reliance on imported fuel.

Bauchi State Governor Bala Mohammed hailed the approvals, noting the academy’s role in training 2,000 youths annually in oil and gas skills, positioning the state as a hub for human capital development. However, challenges persist, including security risks from banditry in the North-East, which could disrupt operations, and environmental concerns raised by locals fearing contamination, as highlighted by former Senate President Ahmad Lawan. The government has deployed drone surveillance and military patrols to secure the site. With Nigeria’s oil sector contributing 7% to GDP and 80% to export earnings, Kolmani’s success could reshape the North’s economic landscape, though analysts stress the need for transparent governance to avoid past pitfalls in oil projects.