Reclaiming NNPC: A necessary reset to rescue Nigeria's oil industry
THE recent overhaul of the NNPC Limited board and management by President Bola Ahmed Tinubu is not merely an administrative reshuffle—it is a decisive intervention in the national interest, aimed at rescuing the country's most strategic public enterprise from systemic rot and institutional capture.
The necessity of these appointments stems from the deeply troubling legacy of the previous management, under which NNPC allegedly degenerated into a citadel of opacity and operational inefficiency, despite the transformative intent of the Petroleum Industry Act (PIA) 2021. Previously, NNPC Limited failed to meet even the most basic standards of corporate governance and transparency expected of a commercially oriented national oil company. Year after year, billions of dollars in crude oil revenues were either unremitted, underreported, or misapplied under various opaque arrangements.
The so-called fuel subsidy regime, for which NNPC served as the primary disbursing agency, became a fiscal sinkhole—characterised by gross overstatements, nonexistent verification mechanisms, and allegations of fictitious volumes and round-tripping. Meanwhile, critical investment decisions stalled, upstream output declined, and the country was left unable to take full advantage of high oil prices due to mismanagement and leakages.
The transition of NNPC into a limited liability company was supposed to signal a new era of commercial discipline and accountability. Instead, the nation saw the entrenchment of old habits under a new corporate guise. The company evaded scrutiny by withholding audited statements, failing to engage meaningfully with shareholders—the Nigerian people—and resisting structural reforms under the guise of national security or market sensitivity.
Related AfCFTA and Nigeria's port infrastructure An age of modern legends Silverbird Man of the Year Award as affirmation of Oyebanji's exemplary leadership
This undermined investor confidence, constrained capital inflow into the sector, and left Nigeria's oil and gas value chain in a state of arrested development. At this critical juncture where Nigeria must stabilize its fiscal base, accelerate gas commercialisation, attract investment, and align with global energy transition trends, NNPC cannot continue to be a drain on the treasury or a bastion of unaccountability. The new board and management, appointed with careful consideration of technical competence, ethical standing, and regional representation, bring with them a renewed mandate: to clean house, rebuild trust, and reposition NNPC as a truly performance-driven national oil company.
This moment marks the beginning of a long-overdue shift—from rent-seeking to value creation, from secrecy to transparency, and from institutional stagnation to strategic renewal. It is a necessary turning point for NNPC, and by extension, for Nigeria's economic future.
Mohammed is a finance and public affairs analyst
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
15 hours ago
- Arabian Post
Nigeria Awards Bill Gates Third-Highest National Honour
President Bola Tinubu has bestowed Nigeria's third-highest national honour, the Commander of the Order of the Federal Republic , on Bill Gates. The recognition acknowledges Gates's substantial philanthropic contributions to the country, particularly through the Bill & Melinda Gates Foundation, which has invested heavily in public health and agriculture sectors across Nigeria. The conferment took place during a formal ceremony in Abuja, underscoring the Nigerian government's appreciation for Gates's enduring commitment to tackling some of the country's most pressing challenges. The award is one of the highest civilian distinctions in Nigeria, given to individuals who have demonstrated exceptional service and impact in their fields. Bill Gates's foundation has been deeply involved in Nigeria's healthcare system for over two decades, focusing on eradicating infectious diseases such as polio and malaria. Nigeria was declared free of wild poliovirus in 2020, a landmark achievement in which the Gates Foundation played a crucial role by funding vaccination drives and strengthening immunisation infrastructure. The foundation's partnership with the Nigerian government and global health agencies has also targeted maternal and child health, investing in initiatives to reduce mortality rates and improve healthcare delivery in underserved regions. ADVERTISEMENT Agriculture has been another cornerstone of Gates's philanthropic efforts in Nigeria. Recognising the sector's vital role in economic development and food security, the foundation has supported numerous programmes aimed at boosting agricultural productivity and innovation. These initiatives include funding research on climate-resilient crops and providing farmers with access to better seeds, technology, and market information. Such efforts have helped smallholder farmers increase yields and income, while also encouraging sustainable farming practices. President Tinubu, addressing the ceremony, highlighted that awarding Gates reflected Nigeria's gratitude for the substantial socio-economic benefits generated by the foundation's investments. The president described the honour as a symbol of the enduring partnership between Nigeria and the philanthropic community in advancing public welfare. Tinubu also emphasised the importance of sustained collaboration with private and non-governmental actors to accelerate development goals and improve living standards nationwide. Gates, who attended the ceremony virtually, expressed deep appreciation for the honour and reaffirmed his foundation's commitment to Nigeria. He reiterated the importance of investing in health and agriculture as foundations for economic growth and social stability. Gates pointed out that despite progress, challenges such as health system capacity and climate change effects on agriculture require ongoing attention and innovation. He pledged continued support for initiatives that empower communities and foster resilience. Analysts note that Nigeria's decision to honour Gates highlights a broader trend of recognising global philanthropic leaders whose work transcends borders. The Nigerian government has increasingly embraced public-private partnerships to address systemic issues, acknowledging that complex challenges demand diverse resources and expertise. This honour may also encourage other international donors and investors to intensify their engagement with Nigeria, given the country's critical position in Africa's economy and demographic landscape. However, the move has not been without critics. Some voices within Nigeria argue that such awards should prioritise domestic actors and public servants who have directly contributed to national progress. Critics also caution that foreign philanthropic efforts, while beneficial, must align closely with national priorities and be subject to transparent oversight to ensure long-term impact. Despite these concerns, the overall response to Gates's recognition has been largely positive, reflecting a consensus on the value of his foundation's work. ADVERTISEMENT The Gates Foundation's investments in Nigeria are part of a global portfolio that addresses health, poverty, and education, with a growing focus on innovation and technology. Nigeria remains a key beneficiary due to its large population and development needs. The foundation's work complements efforts by other international agencies and governments, creating a multifaceted support network for Nigeria's socio-economic advancement. Nigeria faces persistent challenges in health and agriculture, with disease burdens and food insecurity impacting millions. The government has prioritised reforms and increased budget allocations in these sectors, but resource gaps remain significant. Philanthropic contributions, such as those from the Gates Foundation, provide critical supplementary funding and expertise. The recent honour on Gates symbolises the appreciation of these contributions while signalling a desire for deeper engagement and partnership. Bill Gates's recognition coincides with Nigeria's strategic push to attract investment and innovation to drive sustainable development. It comes at a time when the country seeks to strengthen healthcare infrastructure, boost agricultural output, and improve overall resilience to climate and economic shocks. This award underscores the role that international philanthropic actors play in complementing state efforts and fostering global cooperation on development challenges.
Broadcast Pro
a day ago
- Broadcast Pro
NBC and Nigcomsat launch satellite plan to transform broadcasting
For the first time, Nigerian households will gain access to high-quality digital broadcasts via affordable satellite dishes, hybrid devices, and internet-enabled set-top boxes. The National Broadcasting Commission (NBC) and Nigerian Communications Satellite Limited (NIGCOMSAT) have jointly introduced The Big Picture, a flagship initiative under Nigerias renewed Digital Switchover (DSO) project. Backed by President Bola Ahmed Tinubu and in line with his Renewed Hope Agenda, this strategic shift marks a significant step toward transforming Nigerias broadcasting landscape by leveraging the countrys sovereign satellite infrastructure. At the heart of the initiative is NigComSat-1R, Nigerias only communications satellite in orbit, which will play a critical role in delivering Direct-to-Home (DTH) broadcasts across the entire Nigerian territory. This satellite-first approach eliminates the traditional dependence on terrestrial transmission towers, accelerating the nationwide rollout of digital broadcasting by over 65%. It also offers a scalable, cost-effective, and future-ready model for expanding digital access and promoting national storytelling. Key figures, including NBCs Director-General, Barr Charles Ebuebu, and Nigcomsats Managing Director, Jane Nkechi Egerton-Idehen, have welcomed this forward-thinking strategy, emphasising its importance in maximising the use of national satellite assets and ensuring inclusive access to digital content. For the first time, millions of Nigerian households will be able to access high-quality digital broadcasts through affordable satellite dishes, hybrid set-top boxes, and internet-enabled devices. An estimated 10 million homes equipped with DVB-S2-compatible televisions or decoders will have immediate access to free-to-air channels, while others will benefit from next-generation hybrid devices that combine satellite feeds with online streaming capabilities. These new branded devices are designed with the countrys youth-dominated demographic in mindover 60% of the population is under the age of 25. They will feature pre-installed apps, voice search functionality, parental controls, and seamless integration with NigComSats Electronic Programme Guide (EPG), offering an intuitive and engaging user experience. In a data-driven upgrade to Nigerias broadcasting ecosystem, NBC is also partnering with global analytics firm GARB to introduce real-time audience measurement technology. This will enable broadcasters, advertisers and content creators to analyse viewership trends across regions and devices, helping to tailor content more effectively and drive higher audience engagement. The introduction of this system is expected to boost advertising revenue by as much as 300% by 2026. The success of The Big Picture will rely on robust collaboration between public and private stakeholders. The Broadcasting Organisation of Nigeria (BON) and other content partners are expected to supply 60% of programming for the new 120-channel platform, using both original and repurposed content. Meanwhile, local manufacturers will contribute by producing around 5 million compliant devices annually, a move projected to create over 20,000 jobs in assembly plants nationwide. This ambitious initiative also dovetails with President Tinubus By-Nigeria industrial policy, aiming to stimulate local manufacturing, strengthen economic resilience, and champion Nigerian creativity and innovation. As the country transitions to a fully digital future, The Big Picture stands as a transformative blueprint for democratising access to information and revitalizing Nigerias cultural narrative through technology.
Zawya
3 days ago
- Zawya
Nigeria Issues Upstream Executive Order, Prioritizing High Returns for Oil & Gas Operators
Nigerian President Bola Ahmed Tinubu has signed an executive order designed to lower costs and enhance revenue from oil and gas projects. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for upstream operators and is expected to play an instrumental role in attracting investment, driving development and unlocking greater value from the country's oil and gas resources. As the voice of the African energy sector, the African Energy Chamber (AEC) commends the Nigerian government's continued commitment to not only improving the operating climate for oil and gas firms, but strengthening the competitiveness of doing business in Nigeria. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) is an intentional strategy to transform the country, and with this reform, Nigeria is well-positioned to attract fresh investment across its upstream oil and gas sector – reaffirming the country's position as one of Africa's top producers. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) will feature incentives for operators who deliver verifiable cost savings that meet defined industry benchmarks. The country's upstream regulator the Nigerian Upstream Petroleum Regulatory Commission will publish the requisite benchmarks on an annual basis and according to asset type. Benchmarks will cover a variety of assets including onshore, shallow-water and deep-water. In addition, the executive order will cap available tax credits at 20% of a company's annual tax liability, thereby protecting the government's revenues as well as fiscal competitiveness. Nigeria's Special Advisor to President Tinubu on Energy Olu Verheijen will spearhead inter-agency coordination, ensuring operators maximize the opportunities presented through the executive order. The executive order could not come at a better time for Nigeria. Targeting two million barrels per day (bpd) in oil production and 12 billion standard cubic feet per day (bscf/d) in gas production – up from the current 7.3 bscf/d – Nigeria requires significant levels of investment in both active fields and exploration blocks. While the country has long-faced investment decline owing to a variety of factors – including regulatory uncertainty and shifts in global spending – recent reforms promise to turn this trend around. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) follows the implementation of the Petroleum Industry Act (PIA) in 2021, which sought to address industry challenges by providing a comprehensive framework for the country's oil and gas landscape. With both policies, Nigeria is expected to accelerate investment in exploration and production. The impact of the PIA has already been felt across the country, with energy companies – from majors to independents to the national oil company (NOC – making sizable investments. Renaissance Africa Energy – a consortium of independents – is planning $15 billion in spending across 32 oil and projects; ExxonMobil is investing $1.5 billion to revitalize the Usan deepwater oilfield at OML 138; while TotalEnergies and the Nigerian National Petroleum Company is investing $550 million in a non-association gas project. ExxonMobil's Usan field plans to make a final investment decision Q3, 2025. In 2024, the country secured $6.7 billion in investments, with $5.5 billion of this directed towards oil and gas asset acquisitions. Looking ahead, both the PIA (2021) and Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) are expected to entice greater spending across the market, providing operators with strong fiscals that prioritize high returns. By 2029, Nigeria seeks to unlock $30 billion in oil and $5 billion in gas investments, and the policies are anticipated to serve as a driving force behind this goal. 'This recent executive order is a testament to Nigeria's commitment to strengthening its regulatory landscape, improving fiscals and supporting revenue generation across the oil and gas industry. The order is expected to play a significant role in attracting new investment into the country at a time when national production goals require greater capital and technology injection. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) positions the country as a globally competitive hydrocarbon market,' states NJ Ayuk, Executive Chairman of the AEC. Distributed by APO Group on behalf of African Energy Chamber.
