During an inspection visit to Bauchi State, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) pledged to facilitate the remobilisation of exploration activities at the Kolmani Oil Field. The Kolmani field, located in the Benue Trough, holds significant promise for Nigeria’s oil and gas sector, with estimates suggesting it could contain billions of barrels of crude oil. The field has been largely dormant, with exploration activities stalled because of a combination of technical, financial, and regulatory challenges.
RMAFC’s pledge is a significant development for the oil and gas sector. Because the commission oversees revenue allocation, its support for the project could unlock the funding and political will needed to restart exploration. The Kolmani field could be a game-changer for Nigeria’s oil production, providing a new revenue stream and reducing the country’s dependence on the Niger Delta. For residents of Bauchi State, remobilising exploration activities could bring jobs and economic development.
The winners: the Nigerian oil and gas sector, which could gain a new source of production; and Bauchi State, which could benefit from economic development. The losers: the Nigerian government, which must ensure the project is managed transparently; and the Nigerian public, who must wait for the benefits.
Bottom Line: The Kolmani Oil Field could be revived. RMAFC is backing the project. The question is whether the exploration will finally begin or remain on paper.