NNPC’s Kolmani Oil Field Revival: A $3 Billion Gamble with Little Returns

Northern Nigeria’s Oil Exploration Efforts Yield Minimal Results Despite Massive Investment

The announcement by Bayo Ojulari, the newly appointed Group Chief Executive Officer of NNPC, regarding plans to restart crude oil exploration at the Kolmani oil field on the Bauchi-Gombe border was met with enthusiasm. The northern region has long been considered Nigeria’s next major oil frontier. However, this optimism masks a concerning truth: over $3 billion has already been invested in exploration across northern basins—including Kolmani, Chad, and Upper Benue—with minimal returns to show for this substantial expenditure.

The Hidden Cost of Nigeria’s Northern Oil Dream

While the potential discovery of significant oil reserves in northern Nigeria could transform the country’s energy landscape, the current reality paints a different picture. The massive financial outlay in these exploration projects raises serious questions about resource allocation and return on investment at a time when Nigeria faces significant fiscal challenges.

By Kelvin Emman

Full credit to the original publisher: Business Day