When former President Muhammadu Buhari inaugurated the Kolmani Integrated Development Project (KIPRO) in November 2022, it was hailed as a watershed moment for Nigeria’s oil industry.
The discovery of oil in the country’s northern region, straddling Gombe and Bauchi states, promised to usher in a new era of economic prosperity, energy security, and regional development.
However, 20 months later, the grand vision of transforming the Kolmani oil fields into a thriving hub of petroleum activity has stalled, leaving more questions than answers about the future of this ambitious project.
The initial fanfare surrounding KIPRO was understandable. With projected reserves of over one billion barrels of crude oil and more than 500 billion standard cubic feet of gas in its first reservoir alone, the Kolmani oil fields represented a significant boost to Nigeria’s hydrocarbon resources.
The government’s plans were nothing short of transformative: a daily production target of 50,000 barrels of crude oil, a 250,000-barrel capacity refinery, a 350-megawatt power plant, and a 2,000-ton capacity fertilizer plant.
It was a comprehensive blueprint for in-situ development that promised to create jobs, stimulate local economies, and reduce Nigeria’s dependence on oil production from the troubled Niger Delta region.
Reports from local residents and concerned lawmakers paint a picture of abandonment and inactivity. The once-bustling exploration site now lies dormant, with contractors reportedly departing, leaving behind unfinished work and unfulfilled promises.
This sudden halt in operations raises serious concerns about the project’s viability and the government’s commitment to seeing it through.
The reasons behind this unexpected suspension remain shrouded in mystery. While some have speculated that security concerns might be to blame, both local officials and lawmakers have emphatically dismissed this notion.
For decades, the country has struggled to maximize the benefits of its vast oil resources, grappling with issues of corruption, mismanagement, and environmental degradation.
The hope was that KIPRO, with its integrated development approach and location away from the Niger Delta, would represent a fresh start – a chance to do things right from the beginning.
The current impasse suggests that old habits die hard, and that the structural issues plaguing Nigeria’s oil industry may run deeper than many had hoped.
The economic implications of this setback cannot be overstated. Nigeria, Africa’s largest economy, has been grappling with a host of economic challenges, including high inflation, currency devaluation, and a pressing need for diversification away from oil dependence. The Kolmani project was seen as a potential catalyst for economic growth, not just for the northern region but for the country as a whole.
Its failure to launch as planned represents a missed opportunity for job creation, increased government revenue, and enhanced energy security.
Furthermore, the project’s stagnation sends a troubling signal to potential investors in Nigeria’s oil and gas sector.
In an era of global energy transition, where many countries are pivoting towards renewable sources, Nigeria needs to demonstrate that it can efficiently and transparently manage its hydrocarbon resources if it hopes to continue attracting foreign investment. The Kolmani saga does little to inspire confidence in this regard.
It is crucial that the federal government, under the leadership of President Bola Tinubu, addresses this issue with the urgency it deserves. The recent meeting between Gombe State Governor Muhammadu Inuwa Yahaya and President Tinubu is a step in the right direction, but it must be followed by concrete action.
The government needs to provide a clear, honest assessment of the project’s status, including any challenges faced and the steps being taken to address them.
If there are indeed issues between the NNPC and its partners, as Governor Yahaya alluded to, these need to be resolved swiftly and transparently.
The government should consider establishing an independent task force to review the project, identify bottlenecks, and propose solutions. This task force should include not just government officials and oil industry experts, but also representatives from local communities and civil society organizations to ensure a comprehensive and balanced approach.
Moreover, this moment of crisis should prompt a broader reflection on Nigeria’s oil industry governance.
The Petroleum Industry Act (PIA) passed in 2021, was meant to overhaul the sector and improve transparency and efficiency. The Kolmani project’s troubles suggest that much work remains to be done in implementing these reforms effectively.
The dream of northern Nigeria’s oil wealth is not dead, but it hangs precariously in the balance. How the government responds to this crisis will speak volumes about its commitment to economic development, regional equity, and good governance.
For the sake of the communities in Gombe and Bauchi, and indeed for all Nigerians, one can only hope that the Kolmani conundrum will be resolved soon, transforming a potential debacle into a story of resilience, reform, and ultimate success.
