By William Emmanuel Ukpoju
In a significant development for Nigeria’s energy sector, the Nigerian National Petroleum Company Limited (NNPC) has announced plans to resume crude oil drilling in northern Nigeria, specifically at the Kolmani oil field located along the boundary of Bauchi and Gombe states. This move marks a strategic expansion of the country’s oil exploration activities beyond the traditional Niger Delta region, signaling a new chapter in Nigeria’s quest for energy diversification and economic growth.
The Kolmani oil field, situated in the Upper Benue Trough within the Gongola Basin, was the site of a major hydrocarbon discovery in 2019, with estimates of over one billion barrels of crude oil and 500 billion cubic feet of natural gas. Commercial drilling commenced in 2022, representing the first significant oil production in northern Nigeria. However, operations were paused, and the recent announcement by NNPC’s Group Chief Executive Officer, Bayo Ojulari, confirms that drilling activities are set to resume in June 2025. Ojulari emphasised the importance of the Kolmani project and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline in boosting the national economy and energy security. The resumption of drilling in the north is part of the federal government’s broader strategy to expand Nigeria’s oil production capacity and diversify its oil exploration activities. The renewed focus on frontier basins like the Gongola Basin aligns with efforts to increase hydrocarbon reserves and stimulate economic development in underexplored regions.
The Kolmani Integrated Development Project is expected to attract significant foreign investment and generate employment opportunities for local communities. With investment commitments already totalling $3 billion, the project aims to harness the region’s hydrocarbon potential and contribute to national economic growth.
Infrastructure development plays a crucial role in the success of these initiatives. The AKK gas pipeline, a 614-kilometre project designed to transport natural gas from Ajaokuta to Kano, is a key component of the government’s plan to enhance electricity generation capacity and rejuvenate industries in the northern region. The pipeline project is progressing steadily, with work set to continue alongside the resumption of drilling activities at Kolmani.
While the expansion of oil exploration into northern Nigeria presents numerous opportunities, it also poses challenges. Security concerns, particularly in regions affected by insurgency, could impact operations. Additionally, environmental considerations must be addressed to prevent ecological degradation, drawing lessons from the Niger Delta’s experience with oil-related pollution.
The NNPC’s plan to resume crude oil drilling in northern Nigeria represents a strategic shift in the country’s energy landscape. By expanding exploration activities beyond the Niger Delta, Nigeria aims to increase its hydrocarbon reserves, stimulate regional development, and enhance national energy security. However, the realisation of these objectives will depend on addressing security challenges, ensuring environmental sustainability, and fostering inclusive development.
Historical Context and Strategic Rationale
Nigeria’s oil exploration has predominantly been concentrated in the Niger Delta since the discovery of oil in Oloibiri in 1956. However, the volatility in the region, coupled with the need to increase national reserves, has prompted the government to look northwards. The discovery of over 1 billion barrels of oil and 500 billion cubic feet of gas in the Kolmani River II Well, spanning Bauchi and Gombe States, marked a significant milestone in this northern exploration initiative.
The NNPC’s renewed focus on the north aligns with its broader strategy to increase Nigeria’s hydrocarbon reserves from 37 billion barrels to 50 billion barrels in the short to medium term. This move is also in line with the company’s commitment to enhancing national energy security and associated economic benefits.
Economic Implications and Investment Prospects
The northern drilling initiative is not just about increasing reserves; it’s also about economic diversification and regional development. The Kolmani Integrated Development Project, for instance, is expected to generate over ₦32 trillion, creating thousands of jobs and stimulating economic activities in the region.
To support these ambitious projects, NNPC Exploration and Production Limited (NEPL) plans to invest approximately $20 billion over the next five years to boost oil and gas output. This investment is aimed at raising oil production to 550,000 barrels per day by 2027 and increasing gas production to 3 billion cubic feet over the same period.
Infrastructure Development and Strategic Partnerships
Infrastructure development is critical to the success of the northern drilling initiative. The Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, which is 72% complete as of Q1 2025, is a significant step in this direction. The 614-kilometre pipeline is designed to transport natural gas from the southern gas-rich regions to the northern parts of the country, enhancing electricity generation capacity and revitalising industries.
In addition to infrastructure, strategic partnerships are being forged to bolster upstream operations. NNPC’s agreement with Schlumberger (SLB), a United States offshore drilling company, is a testament to this collaborative approach. The partnership aims to unlock opportunities in the nation’s oil and gas industry through technical expertise and investment.
Nevertheless, the Nigerian National Petroleum Company Limited (NNPC)’s decision to resume crude oil drilling in northern Nigeria, particularly at the Kolmani oil field, has elicited a spectrum of reactions from industry experts, stakeholders, and analysts. While many view this move as a strategic diversification of Nigeria’s oil exploration activities, others caution against potential challenges associated with such an expansion.
Optimism and Strategic Diversification
Industry stakeholders have lauded the Kolmani project as a significant step towards diversifying Nigeria’s oil exploration beyond the traditional Niger Delta region. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) expressed satisfaction with the government’s efforts, highlighting the potential for economic development and wealth distribution to the northern part of the country. The association commended the swift move by NNPC and its partners to develop the asset up to production, emphasising the importance of spreading national wealth and fostering economic growth in the region.
Similarly, industry experts like Mr. Tajudeen Adigun, CEO of NCGAP Limited, view the Kolmani project as a testament to technological advancements in oil exploration. Adigun noted that the successful discovery of oil in the north by NNPC, after international oil companies had tried and failed, underscores the role of technology in unlocking new frontiers in the oil and gas sector.
Cautionary Perspectives and Strategic Challenges
Despite the optimism, some experts urge caution, pointing to potential challenges associated with the Kolmani project. A strategic analysis published in the International Journal of Latest Trends in Engineering and Management (IJLTEMAS) employed SWOT and PESTLE frameworks to evaluate the Kolmani field’s development. The study identified key challenges, including infrastructure deficits, regional security concerns, and heavy tax burdens under the Petroleum Industry Act (PIA) 2021. The analysis emphasised the need for government incentives, robust security measures, and effective risk management strategies to ensure the project’s viability and success.
Challenges and Considerations
While the northern drilling initiative holds promise, it is not without challenges. Security concerns, particularly in regions plagued by insurgency, pose significant risks to operations. Additionally, the environmental implications of expanding oil exploration into new territories must be carefully managed to prevent ecological degradation.
Moreover, the success of these projects hinges on effective governance, transparency, and community engagement. Lessons from the Niger Delta underscore the importance of involving local communities in decision-making processes and ensuring that they benefit from the resources extracted from their lands.
Ultimately, NNPC’s plan to resume crude oil drilling in northern Nigeria represents a strategic shift in the country’s energy landscape. By expanding exploration activities beyond the Niger Delta, Nigeria aims to increase its hydrocarbon reserves, stimulate regional development, and enhance national energy security. However, the realisation of these objectives will depend on addressing security challenges, ensuring environmental sustainability, and fostering inclusive development. As Nigeria navigates this new frontier in oil exploration, a balanced approach that integrates economic ambitions with social and environmental considerations will be crucial for sustainable success.