Tinubu Approves Licences for Northern Oil Project, Boosting Exploration in Kolmani...President Bola Tinubu has given the green light to a major step in Nigeria’s energy development with the approval of regulatory licences for the Kolmani Integrated Development Project.
This move marks a renewed federal commitment to tapping into the country’s oil and gas potential in the northern region, particularly in Bauchi and Gombe states, where the Kolmani oilfield is located.
Announced on May 19, 2025, the licences come as part of broader efforts to accelerate the development of oil reserves in underexplored regions. Kolmani, situated in the Upper Benue Trough, has long been eyed for its promising hydrocarbon deposits, with reserves estimated at over one billion barrels of crude oil and significant volumes of natural gas. The approval of these licences is expected to jumpstart production that could yield up to 50,000 barrels of crude per day once fully operational.
The development is a product of the Frontier Exploration Fund, a special initiative under the Nigerian National Petroleum Company Limited (NNPCL), aimed at boosting exploration in regions outside the traditional oil-producing zones of the Niger Delta. The fund was designed to diversify Nigeria’s oil production base and lessen the economic dependence on the south, particularly in light of increasing militancy, infrastructure challenges, and environmental issues affecting oil output in the Delta.
Alongside the licensing approvals, the federal government also announced the establishment of a new oil and gas academy in Bauchi State. This academy will provide training and technical expertise to support the expansion of the petroleum industry in the region. By building local capacity and investing in skill development, the administration hopes to create employment opportunities and foster a generation of professionals equipped to manage and operate oil infrastructure in northern Nigeria.
The Kolmani project, first unveiled during the administration of former President Muhammadu Buhari, has faced several delays over the years. Equipment failures, bureaucratic bottlenecks, and regulatory uncertainties had slowed down the pace of development. However, with Tinubu’s recent intervention and regulatory support, the project is set for a revival. Exploration activities have resumed at the Wadi-B site using Acme Rig 5, operated by ACME Energy Integrated Services, signaling a renewed focus and momentum for the project.
Despite the optimism, the development also raises questions about the broader trajectory of Nigeria’s oil sector. More than 50 oil licences tied to existing fields, mainly in the Niger Delta, are expected to expire by the end of 2025. There has been growing concern over the uncertainty surrounding licence renewals and how this might impact overall production. Some industry stakeholders are calling for a transparent, expedited renewal process to prevent a drop in output and ensure continued investor confidence.
The shift toward northern oil development is viewed as both an economic and political strategy. By spreading oil wealth more evenly across regions, the federal government aims to promote national unity and reduce the long-standing perception of economic marginalization in the North. The move is also anticipated to ease tensions over resource control and federal revenue allocation that have persisted for decades between the oil-rich South and other parts of the country.
Industry analysts believe that if managed properly, the Kolmani project could reshape the dynamics of Nigeria’s energy landscape. The project’s success would not only boost national oil output but also trigger a wave of development in a region that has often lagged in industrialization. The oil and gas academy is also seen as a critical element of this strategy, helping to ensure that local communities are not just passive hosts of extractive activities but active participants in a growing industry.
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President Tinubu’s decision to approve the Kolmani licences is being hailed as a bold and timely intervention in Nigeria’s energy sector. With proper execution, oversight, and community engagement, the Kolmani project could set a new benchmark for regional development and energy diversification in Nigeria. As drilling resumes and infrastructure builds up, stakeholders will be watching closely to see whether this project can fulfill its promise and contribute meaningfully to Nigeria’s economic future.
