Key Points
- Bauchi State Government has called for the resumption of oil and gas exploration at the Kolmani Integrated Development Project.
- The state said reviving the project could attract investment, create jobs and increase government revenue.
- RMAFC said it would submit findings from its inspection of the project to the Federal Government.
Main Story
The Bauchi State Government has called for the resumption of oil and gas exploration at the Kolmani Integrated Development Project, saying its revival could strengthen investment, employment and revenue generation in the state.
The Commissioner for Natural Resources, Muhammad Maiwada, made the call on Monday during a facility tour of the project by a team from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
The delegation was led by the Chairman of RMAFC, Mohammed Shehu.
Oil exploration activities at the Kolmani site, located along the Bauchi-Gombe State border, were suspended following delays after the project was inaugurated in 2022 by former President Muhammadu Buhari.
Maiwada said the government was seeking the remobilisation of activities and the resumption of crude oil exploration at the site.
He said the development of the project could provide economic benefits through increased investment and employment opportunities while expanding Bauchi State’s revenue base.
The commissioner also said reviving the oil field could support economic diversification and contribute to sustainable development in the North-East.
He commended the Federal Government for programmes aimed at promoting the utilisation of Nigeria’s oil, gas and other natural resources.
The RMAFC chairman said the commission’s team would submit its findings from the visit to the Federal Government for further action.
Shehu described the Kolmani project as important to Nigeria’s revenue generation, fiscal interests and broader economic development.
He said the inspection enabled the commission to obtain first-hand information on the issues affecting the project.
The team also inspected facilities at the Bauchi Oil and Gas Academy in Alkaleri.
The Issues
The suspension of exploration activities at the Kolmani project has delayed the development of an oil and gas asset that Bauchi State believes could provide additional economic opportunities.
For the state government, resuming exploration could attract investment, create employment and strengthen internally generated revenue while supporting economic diversification in the North-East.
The project also has implications for Nigeria’s wider fiscal position because of its potential contribution to oil and gas production and government revenue.
What’s Being Said
“The call is imperative to remobilise and resume crude oil exploration activities at the site.”
— Muhammad Maiwada, Commissioner for Natural Resources, Bauchi State
“Reviving the Kolmani project would provide significant economic benefits to the state through investment and employment opportunities, as well as boost its revenue base.”
— Muhammad Maiwada, Commissioner for Natural Resources, Bauchi State
“The project is important in view of its contribution to revenue generation, fiscal interest and economic development of the country.”
— Mohammed Shehu, Chairman, RMAFC
What’s Next
RMAFC is expected to transmit its findings from the facility tour to the Federal Government for further action.
The next step will depend on decisions by the Federal Government and other stakeholders on the resumption and development of exploration activities at the Kolmani project.
Bottom Line
Bauchi State wants oil and gas exploration to resume at the Kolmani Integrated Development Project, which it sees as a potential source of investment, jobs and additional revenue. RMAFC’s inspection and subsequent report could inform the Federal Government’s next steps on the stalled project.
