The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to resume oil drilling in the Kolmani Field, located at the boundary of Bauchi and Gombe states, even as national oil and condensate production stagnated in April 2025.

This comes as the World Bank asked the Nigerian government to step up efforts at eliminating Premium Motor Spirit (PMS), otherwise called petrol price manipulation, calling for a forensic audit of the NNPCL to improve transparency in the country’s oil and gas sector.

Group Chief Executive Officer of the NNPCL, Bayo Ojulari, who spoke during an interview on the BBC Hausa Service yesterday, said that the oil drilling would resume next month.

It would be recalled that over $3 billion had been reportedly spent on oil exploration in the northern region as successive governments pursued the course despite criticisms. With the Petroleum Industry Act (PIA), a dedicated fund, which was estimated at about $400 million yearly, is now legally designed for such exploration.

Ojulari said the government was on track with prospects for oil in the North, adding that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline remains a top priority for the company and the Federal Government, given their strategic importance to national economic growth.

“NNPC will continue oil drilling in the Kolmani field and will continue the work on the AKK gas pipeline from Ajaokuta to Kaduna to Kano. The companies working on the projects will continue, and new ones are also welcome,” he said.

He, however, gave the assurance that both projects, which had been on hold, would resume in earnest by June, adding: “The projects are critical in boosting the economy and the impact will be felt by all Nigerians. By next month, people will begin to see. We will start work on the AKK gas pipeline and the Kolmani.” Ojulari also disclosed that the company would work simultaneously with the Dangote Refinery.

Meanwhile, the World Bank in Nigeria Development Update (NDU) report said there is a need to maintain deregulation of the downstream petrol market and to prevent dominant players from influencing pump prices.

The bank recommended that the government must “ensure the PMS market remains deregulated” and “strengthen antitrust measures to ensure no market players manipulate prices.”

The report also called for the complete elimination of the foreign exchange (Forex) subsidy, urging the Central Bank of Nigeria (CBN) to ensure that all FX-related transactions are conducted strictly at market-determined rates.

On electricity, the World Bank advised the federal government to settle existing subsidy arrears while adopting cost-reflective tariffs, complemented by a universal subsidy to protect vulnerable consumers.

Also, to strengthen fiscal performance, the bank proposed enhanced tax administration, including the adoption of e-invoicing and improved tax audits, as well as reforms to the Value Added Tax (VAT) regime.

It, however, stressed the need for greater transparency in oil revenues, adding that savings from subsidy removal must flow directly to the Federation Account.