An attempt is made in this article to examine and assess the possible petroleum habitat in the Bornu Basin, which is the Nigerian portion of the Mega-Chad Basin that has been found to host oil and gas in commercial quantities in Niger, Chad and Cameroon. The presence of three of the fundamental geological factors (source rock, reservoir rock and seal/trap) for commercial hydrocarbon accumulation was assessed in the light of existing information. Available geochemical information reveals that the shales of the Bima, Gongila and Fika Formations in the Bornu Basin contain sufficient organic matter for hydrocarbon generation. Limited existing geochemical data suggest that the quantity and quality of the organic matter in the shales vary widely with the TOC of most samples ranging from 0.54 wt% - 1.25 wt% and the HI from 11 - 173.80 mg/g in intervals with Tmax in the range of 365°C - 519°C. In addition, the kerogen type is predominantly type III with minor type II, thus suggesting a predominant gas prone basin. Possible reservoir rocks occur as sand/sandstone beds within the Bima, Gombe, and Kerri-Kerri, as well the Gongila Formation which also contains much shale and limestone. Both stratigraphic and structural trapping conditions exist in the Bornu Basin. The structural traps were presumably formed during the widespread Santonian tectonic inversion that affected the entire Mega-Chad Basin. It is suggested that deeper drilling into the sands and sandstone of the untested Bima Formation that could host hydrocarbon of commercial quantities, as evidenced by the discoveries at deeper depths in the neighbouring Termit Basin, was desirable.