“The successful discovery of the Kolmani Oil and Gas field by NNPC and her partners has finally broken the jinx by the confirmation of huge commercial deposits of hydrocarbons in Kolmani River field.

“This discovery had emanated from our charge to the NNPC to re-strategize and expand its oil and gas exploration footprints to the frontier basins of Anambra, Dahomey, Sokoto, Benue trough, Chad and Bida Basins. Similar activities across the other basins are currently actively on-going.

“We are pleased with the current discovery of over 1 billion barrels of oil reserves and 500 billion Cubic Feet of Gas within the Kolmani area and the huge potentials for more deposits as we intensify exploration efforts.”

These were the words of President Muhammadu Buhari today, November 22, in Bauchi when he Flagged-off the Kolmani Integrated Development Project, a fully integrated in-situ development project comprising upstream production, oil refining, power generation and fertilizer.

The President said: “it is to the credit of this administration that at a time when there is near zero appetite for investment in fossil energy, coupled with the location challenges, we are able to attract investment of over USD 3 billion to this project.”

Buhari commended Nigerian National Petroleum Company Limited (NNPCL) and its partners for the successful discovery of Oil and Gas in the Kolmani River Field.

He said that the huge investment the project had attracted “will surely be a reference subject for discussion in the industry as we pursue the just energy transition programme that will culminate in our country achieving Net- Zero position by the year 2060.”

Buhari stressed the huge benefits the project would bring to the country, which he said, would include “but not limited to Energy Security, Financial Security as well as overall socio- economic development of the country.”

The President said that his administration’s charge to NNPCL to explore other Oil and Gas fields beyond the Niger Delta Basins has finally yielded commendable results.

“This is indeed significant considering that, efforts to find commercial oil and gas outside the established Niger Delta Basin was attempted for many years without the desired outcomes.

The President described the project as “another vital pillar in the Country’s economic architecture,” even as he advised NNPCL and partners to work with all stakeholders for a smooth execution of the project.

“I have engaged the Governors of Bauchi and Gombe States, and both have given me assurances of their unwavering commitment and willingness to ensure support and cooperation in these localities as this activity affects the local populations.

“I urge the NNPC Ltd, NNDC, and their Strategic partners to ensure all lessons learnt from our years of experience as an oil-producing nation are utilized to ensure harmonious relationship with the local communities.”

In his remarks, Minister of State for Petroleum Resources, Timipre Sylva, recalled his relationship with the project, expressing his delight to be associated with the project as Minister having worked with a former Minister of Petroleum Resources when NNDC won the oil prospect lease being flagged off.

Also speaking at the event, the Group Chief Executive Officer of NNPCL, Mele Kolo Kyari, said that the search for oil and gas in the frontier basins of Chad, Sokoto, Anambra Platform, Calabar Embarkment, Benue Trough, Dahomey, Bida and the Ultra Deepwater Niger Delta had spanned decades without significant outcomes.

“However, the singular determination of Mr. President to ensure optimum exploration and exploitation of our natural resources and Your Excellency’s consequential directives for NNPC Limited to strategize and utilize available human, technological and other material resources to prosecute exploration activities in all Frontier Basins resulted in the discovery of commercial oil and gas deposits in the Kolmani Prospect in April 2019.”

There were also goodwill messages from the Governors of Bauchi and Gombe States, Bala Mohammed and Mohammed Inuwa Yahaya respectively, Chairman Northern Governors’ Forum and Governor of Plateau State, Simon Lalong, Senate President, Ahmad Lawan, as well as the APC Presidential Flag bearer, Asiwaju Bola Ahmed Tinubu.

The World Bank has expressed dissatisfaction with a situation where large shares of Nigeria’s resources have financed inefficient and regressive subsidies which benefit primarily wealthy households in the country.

In a report by the World Bank on Nigeria Public Finance Review which was released today, November 21 in Abuja, it stressed the need for the country to fix its public finances to promote inclusive and sustainable development.

According to the report, macroeconomic and fiscal reforms are urgently needed to lift Nigeria’s development outcomes, which are severely constrained by inefficient use of resources.

“For years, a large share of Nigeria’s resources have financed inefficient and regressive subsidies for petrol, electricity, and foreign exchange.

“Not all these subsidies are accounted for in the budget, which makes them difficult to track and scrutinise.

“However, available data suggest that these subsidies, which accounted for more than the amount spent on education, health, and social protection in 2021, benefit primarily wealthy households.”

The report said that the subsidies also distort incentives, discourage investment, and crowd-out spending on pro-poor programmes, thereby, hindering progress in Nigeria’s social development.

It said that Nigeria had one of the lowest public expenditure and revenue levels in the world, undermining the government’s ability to improve service delivery.

“Between 2015 and 2021, total public spending in Nigeria averaged 12 per cent of Gross Domestic Product, less than half the world average of 30 per cent.”

The report said that improving service delivery in Nigeria required more resources.

“Therefore, one of the most critical aspects of meeting Nigeria’s vast development needs lies in raising more revenues, as the country ranks consistently among the world’s poorest-performing countries in terms of public revenue mobilisation.”

The report noted that the total revenues averaging just seven per cent of GDP in 2015-2021 are far below the global average of 24 per cent.

It said that low tax rates and poor utilisation of tax bases, weaknesses in tax administration, and large deductions from oil revenues were constraining Nigeria’s inability to generate enough revenues.

Source: NAN.