Tag: NNPCL

  • Unlocking Nigeria’s gas potential

    Unlocking Nigeria’s gas potential

    Sir: The unveiling of the Gas Master Plan (GMP) 2026 by the Nigerian National Petroleum Company Ltd (NNPCL) marks a significant milestone in Nigeria’s long-standing effort to transform its vast natural gas resources into a foundation for industrial development, energy security, and sustainable economic growth. The launch held in Abuja under the framework of Nigeria’s gas-centric energy transition strategy signals a shift from mere policy outlines to implementation-anchored execution across the gas value chain.

    At the heart of the plan is the bold ambition to raise national gas production to 10 billion cubic feet per day by 2027, with a further target of 12 billion cubic feet per day by 2030, supported by projected new investments of over $60 billion across the oil and gas sector. These targets are grounded in Nigeria’s possession of some 210 trillion cubic feet (Tcf) of proven gas reserves, with even greater potential, positioning the country as one of the most consequential hydrocarbon basins on the African continent.

    Government and industry officials have rightly described the GMP 2026 as a strategic inflection point — one that moves beyond policy articulation to practical execution, commercial viability, and sector-wide coordination. It is a deliberate attempt to weave gas infrastructure expansion into Nigeria’s broader development narrative, one that embraces power generation, compressed natural gas (CNG), liquefied petroleum gas (LPG), mini-LNG, and downstream industrial off-takers as critical components of national growth.

    This re-energised focus on gas comes at a time when the world’s energy landscape is rapidly evolving, with global markets placing a premium on cleaner, more efficient fuels. Gas, often touted as a transitional energy source, offers Nigeria a pathway to reduce gas flaring, strengthen domestic energy supply, and integrate its economy more deeply into regional and international energy markets. Current plans to accelerate infrastructure such as the Ajaokuta-Kaduna-Kano (AKK) pipeline and other transmission networks are expected to unlock domestic utilisation while anchoring Nigeria’s potential export capacity in the years ahead.

    Read Also: ‘Clear regulations key to Nigeria-European investment’

    Yet, a plan of such ambition also demands sober reflection on execution, governance, and inclusivity. Historical bottlenecks in gas infrastructure, weak implementation frameworks, and regulatory uncertainties have often stymied earlier iterations of Nigeria’s energy plans. The GMP 2026 must therefore transcend rhetoric to deliver measurable results from tangible improvements in electricity supply and industrial power to job creation and improved economic participation across regions.

    Bold targets require equally bold commitment to accountability, transparency, and institutional coordination if they are to inspire both local confidence and international investor interest.

    Moreover, while gas is framed as a bridge in the energy transition, it cannot be divorced from broader considerations of climate responsibility. Nigeria’s economic strategy must balance the immediate benefits of gas exploitation with long-term commitments to cleaner, sustainable energy ecosystems. Pursuing partnerships that incorporate renewable energy initiatives and emission-reduction strategies will amplify the plan’s impact and align Nigeria’s energy goals with global climate priorities.

    Ultimately, the Gas Master Plan 2026 could be transformative but its success hinges not just on lofty targets, but on disciplined execution, structural reforms, and a shared national commitment to leveraging resources for inclusive growth. As Nigeria seeks to establish itself as a major gas hub and energy security anchor in Africa, the pathway from vision to reality must be paved with strategic clarity, institutional rigour, and unwavering focus on the wellbeing of citizens who stand to benefit most from a renewed energy economy.

    •Felix Oladeji, Lagos.

  • Dangote, NNPCL seal gas supply deal

    Dangote, NNPCL seal gas supply deal

    An enhanced gas supply deal that will ensure adequate supply to meet ongoing expansion projects by Dangote Group has been signed by the Dangote Industries Limited (DIL) and the Nigerian National Petroleum Company Limited (NNPCL).

    The deal saw three subsidiaries of DIL – Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc – scaling up their Gas Sales and Purchase Agreements (GSPA) with two subsidiaries of the NNPC- Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

    The upscaled supply agreement is expected to support Dangote Group’s Vision 2030, resulting in increased output, better and cleaner energy supply.

    The agreements were signed at the unveiling of the NNPC Gas Master Plan (GMP) 2026, tagged NGMP 2026 held at the NNPC Towers at the weekend in Abuja.

     Managing Director, Dangote Petroleum Refinery, Mr. David Bird, signed on behalf of the refinery, while the Group Managing Director of Dangote Cement Plc, Mr. Arvid Pathak, signed on behalf of the cement company. Mr. Mustapha Matawalle signed on behalf of Dangote Fertiliser FZE.

    Bird said that the agreement demonstrated the refinery’s bold steps to expand its capacity.

    According to him, the agreements marked a critical milestone in the expansion drive as well as a proactive measure to lock in vast energy requirements for the anticipated increase in its production capacity.

    Pathak described the agreement as an enabler of DCP’s strategic objectives.

    READ ALSO: The men who ruined a republic

    He outlined that the agreement guarantees the gas required to support the drive towards CNG adoption as auto gas and to meet the increasing gas demand as local production capacities are expanded.

    He added that the partnership also promotes the adoption of cleaner fuel for both auto gas through CNG and gas to support increased production output.

    Dangote Fertiliser FZE stated that the agreement would support its fertiliser capacity expansion projects, given that fertiliser is a product of natural gas.

    Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the GMP Master Plan as a deliberate pivot from policy articulation to disciplined execution, anchored on commercial viability and integrated sector-wide coordination.

    He said: “Today’s launch is not merely the unveiling of a document; it represents a deliberate shift towards a more integrated, commercially driven, and execution-focused gas sector, aligned with Nigeria’s development aspirations.

    “Nigeria is fundamentally a gas Nation. With one of the largest proven gas reserves in Africa, our challenge has never been potential, but translation: translating resources into reliable supply, infrastructure into value, and policy into measurable outcomes for our economy and our people. The Gas Master Plan speaks directly to this challenge”.

    Ekpo further noted that the plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns seamlessly with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security, industrialisation, and just energy transition.

    NNPC/L GCEO) Bashir Ojulari, described the NNPC Gas Master Plan 2026 as a bold, effective execution-anchored roadmap designed to unlock Nigeria’s immense gas potential and elevate the country into a globally competitive gas hub.

    Ojulari noted that with about 210 trillion cubic feet (Tcf) of proven gas reserves and an upside potential of up to 600 Tcf, Nigeria possesses one of the most consequential hydrocarbon basins in the world; one reinforced by the Petroleum Industry Act (PIA) and the Federal Government’s gas-centric energy transition agenda.

    He said: “The Plan is structured not just to deliver – but to exceed- the Presidential mandate of increasing national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while catalysing over 60 billion dollars in new investments across the oil and gas value chain by 2030”.

    He explained that the plan prioritises cost optimisation, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves, while strengthening gas supply to power generation, CNG, LPG, Mini-LNG, and critical industrial off-takers.

    He reaffirmed his personal commitment as chief sponsor of the initiative, stressing that the company has adopted a more collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders, partners, and investors.

  • NNPCL unveils gas master plan

    NNPCL unveils gas master plan

     As part of ongoing efforts to reposition Nigeria’s gas sector as the engine room of national industrialisation, energy security, and sustainable economic growth, the Nigerian National Petroleum Company Limited (NNPC Ltd) has officially unveiled its Gas Master Plan (GMP) 2026, tagged NGMP 2026.

    The unveiling, held at the NNPC Towers in Abuja yesterday marks a strategic inflection point in Nigeria’s energy transition journey, underscoring government’s resolve to translate the nation’s vast gas endowment into tangible economic value, infrastructure expansion, and global competitiveness, in alignment with its long-term development aspirations.

    Speaking at the event, the Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the Gas Master Plan as a deliberate pivot from policy articulation to disciplined execution, anchored on commercial viability and integrated sector-wide coordination.

    NNPCL’s Chief Corporate Communications Officer, Mr. Andy Odeh made this known in a press statement.

    The statement quoted the minister as saying, “Today’s launch is not merely the unveiling of a document; it represents a deliberate shift towards a more integrated, commercially driven, and execution-focused gas sector, aligned with Nigeria’s development aspirations. Nigeria is fundamentally a gas Nation. With one of the largest proven gas reserves in Africa, our challenge has never been potential, but translation: translating resources into reliable supply, infrastructure into value, and policy into measurable outcomes for our economy and our people. The Gas Master Plan speaks directly to this challenge.”

    Ekpo further noted that the Plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns seamlessly with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security, industrialisation, and just energy transition.

    In his address, the Group Chief Executive Officer, NNPC Ltd, Engr. Bashir Bayo Ojulari, described the NNPC Gas Master Plan 2026 as a bold, effective execution-anchored roadmap designed to unlock Nigeria’s immense gas potential and elevate the country into a globally competitive gas hub.

    Ojulari noted that with about 210 trillion cubic feet (Tcf) of proven gas reserves and an upside potential of up to 600 Tcf, Nigeria possesses one of the most consequential hydrocarbon basins in the world; one reinforced by the Petroleum Industry Act (PIA) and the Federal Government’s gas-centric energy transition agenda.

    Read Also: ‘NNPC’s Abuja IPP vital to 8,500Mw target’

    “The Plan is structured not just to deliver – but to exceed- the Presidential mandate of increasing national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while catalysing over 60 billion dollars in new investments across the oil and gas value chain by 2030.”

    He explained that the Plan prioritises cost optimisation, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves, while strengthening gas supply to power generation, CNG, LPG, Mini-LNG, and critical industrial off-takers.

    Reaffirming his personal commitment as Chief Sponsor of the initiative, the NNPC Ltd GCEO stressed that the Company has adopted a more collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders, partners, and investors.

    In a goodwill message at the occasion, the Chairman of the Independent Petroleum Producers’ Group (IPPG) and CEO of Aradel Holdings, Mr. Adegbite Falade, said: “This is giving a shot in the arm to the economy which will bridge the gap between intent and reality. Gas thrives on the value chain, from upstream to offtakers. As IPPG members, we reiterate our commitment and support to this initiative.”

    Also lending his voice to the initiative, the Chairman of the Oil Producers Trade Section (OPTS) and MD of TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer, thanked the NNPC Ltd for the ambition behind the NNPC GMP, stressing that his organisation supports the core operating principles of the Plan.

    The Gas Master Plan 2026 is expected to serve as the definitive framework for coordinated gas sector development, execution discipline, and value creation over the next decade.

    The Gas Master Plan 2026 is an offshoot of the Nigerian Gas Master Plan (NGMP) 2008, which is a strategic framework aimed at maximizing the economic benefits from the country’s abundant gas resources. Another significant dimension to the NGMP 2026 is the utmost attention to full alignment with the Nigerian Decade of Gas Programme.

  • Additional 146,000b/d underway as NNPCL hails Chevron Nigeria on Awodi-07 completion

    Additional 146,000b/d underway as NNPCL hails Chevron Nigeria on Awodi-07 completion

    The Nigerian National Petroleum Company Limited (NNPC Ltd) has congratulated Chevron Nigeria Limited (CNL), operator of the NNPC Ltd/CNL Joint Venture, on the successful completion of the 146,000 barrels per day Awodi-07 appraisal and exploration well located in the shallow offshore western Niger Delta.

    The Awodi-07 well was drilled as part of the Joint Venture’s ongoing efforts to further delineate and unlock hydrocarbon potential within its asset portfolio.

     Drilling operations commenced in late November 2025 and were concluded in mid-December 2025, with all activities executed safely, efficiently, and in strict compliance with approved operational and regulatory standards.

    Following the completion of comprehensive testing, logging, and data acquisition, the well was safely secured, bringing the programme to a successful close.

    This was contained in the press statement the NNPCL Chief Corporate Communications Officer Andy Odeh issued yesterday.

    According to him, results from the well are highly encouraging, confirming a significant presence of hydrocarbons across multiple reservoir zones.

    This outcome represents a notable milestone for the NNPC Ltd/CNL Joint Venture, on strengthening confidence in the underlying asset and reinforcing the prospectivity of the area. The success of Awodi-07 further highlights the effectiveness of disciplined exploration, sound technical evaluation, and the strong operational collaboration between NNPC Ltd and its Joint Venture partner.

    Commenting on the achievement, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, commended Chevron Nigeria Limited for its operational excellence, technical competence, and consistent delivery of value.

    Read Also: Tinubu opened political space for young Nigerians – City Boy Movement DG

    He stated: “The success of the Awodi-07 well further reinforces the strength of the NNPC Ltd/CNL Joint Venture and our shared commitment to responsibly growing Nigeria’s hydrocarbon reserves. This achievement aligns squarely with our strategic priorities of increasing production, enhancing national energy security, and delivering sustainable value for the Nigerian people.”

    Also speaking on the milestone, the Executive Vice President, Upstream, NNPC Ltd, Mr. Udy Ntia, described the Awodi-07 results as a clear demonstration of the value of sustained collaboration, technical rigour, and a stable, enabling operating environment.

    According to him: “This discovery underscores the importance of disciplined exploration programmes, strong partnerships, and the positive impact of the reforms introduced under the Petroleum Industry Act. We look forward to working closely with Chevron Nigeria Limited to mature this opportunity and progress it towards timely development and monetisation.”

    NNPC Limited and Chevron Nigeria Ltd work together under a joint venture agreement to operate several oil and gas fields in Nigeria’s Niger Delta. In this partnership, Chevron owns 40 per cent of the assets, while NNPC Limited holds the remaining share. The arrangement allows both companies to combine resources, expertise, and investment to develop Nigeria’s oil and gas resources more effectively.

    Through this collaboration, the partners aim to increase oil production to about 146,000 barrels per day, which would support government revenue, create jobs, and contribute to the country’s energy supply.

  • NNPCL affirms oil output boom over pipeline security

    NNPCL affirms oil output boom over pipeline security

    The Nigeria National Petroleum Corporation Limited (NNPCL) has affirmed that the collaboration between host communities of the Trans Niger Pipeline (TNP) and Pipeline Infrastructure Nigeria Limited (PINL) has led to Increasing oil production and contributing to greater revenue for the country.

    The Head, Field Operations, Eastern Corridor,  Project Monitoring Office, Akponime Omojevwhe, (PMO NNPCL), made the affirmation at the first edition of the Pipeline Infrastructure Nigeria Limited (PINL), and HOSCOMs monthly stakeholders engagement meeting, for the year 2026, held in Port Harcourt,  the Rivers State capital yesterday.

     The meeting is basically meant to get feedback from stakeholders and community people regarding their operations in the host communities.

    Speaking in his opening remarks at the event, Omojevwhe noted that the community’s support has also contributed to the sterling performance of the company in securing the TNP.

    The PMO head urged the communities to sustain the effort in ensuring that the company’s projected 2.5m barrels per day production for the year 2026 is achieved.

    “The message I was sent is to appreciate the stakeholders for your collaboration with PINL which has shown significant upshoot in the oil production and it has yielded in revenue generation.

    “I want to emphasize that this year 2026, we must be able to ensure that it is better than 2025 so that our projection can be met as far as oil production is concerned,” Omojevwhe said.

    Earlier, the General Manager, Community and Stakeholders Relations of PINL, Dr Akpos Mezeh said the company has secured assurances from the host communities to ensure that there are no infractions on the TNP.

    Mezeh noted that the company is determined to meet the Federal Government’s projected 2.5m barrels per day production, commending the surveillance guards for the effort.

    “In this year 2026, we have gotten renewed commitments from the communities to ensure that there is no infraction on the pipelines.

    “We are determined to achieve the Federal Government’s target of 2.5m barrels per day production,” he stated.

    The PINL official also disclosed plans to mediate in the talks between the Federal Government and Ogoniland in Rivers State to ensure a smooth resumption of oil exploration in the area.

    “Reaching the 2.5m barrels per day target of the Federal Government requires that we need to mediate in any area of conflict in the Niger Delta and the Ogoni area is key. In this 2026, we are determined to strengthen mediation with communities in Ogoniland to ensure that there is resumption of crude oil production in that area,” he added.

    Speaking on some of its strategies to sustain its performance in 2026, Mezeh said the company aims to align with the efforts of the Federal Government toward meeting the 2.5million bpd production target, sustain zero infractions along the TNP corridor, mediate in conflicts in Ogoniland and other oil producing communities with a view to resuming production.

    He also listed expansion of women and youth empowerment programmes, deepening community intelligence and participation, strengthening collaboration with NNPCL, Office of the National Security Adviser (ONSA), and security agencies, advocating for improved government presence and infrastructural development in the oil and gas communities.

    The company also promised to uphold transparency, accountability, and consistent engagement to conduct capacity-building training for Community-Based Contractors (CBSs) with focus on incident reporting, event reporting, guard patrol procedures, surveillance and intelligence gathering.

    While thanking the company for their support and cooperation, he urged them to continue to choose the part of peace and dialogue in resolving all issues.

    On his part, the representative of the ONSA at the meeting, Young-Harry Amachree assured that all sentiments and opinions expressed by the community people shall be adequately addressed.

    In his speech, King of Eleme Kingdom, HRM, Philip Osaro Obele, commended the company for carrying the communities along in its operations. He particularly noted the recent distribution of Christmas palliatives to the communities and surveillance guards along the TNP.

    “There is not much to say and talk about but to commend PINL for what they are doing, for carrying every person along. During the festive period, they distributed gifts, rice, beans and other things to the stakeholders.

    “Thank you very much, this will make them feel that you recognize them and the work you have assigned to them to do,” he said.

    Also speaking, a community stakeholder and king of Elele-Alimini Community in Emohua local government area of Rivers State, Eze Peter Wagbara noted that PINL has operated with a difference as against the divide and rule pattern he alleged other companies used on host communities.

    “They are not dividing our people because, most of the conflicts we see in most communities are sponsored by companies, but so far, I have watched the Pipeline Infrastructure Nigeria Limited, especially in my own domain, there have not been any such thing, “ he stated.

    Read Also: The legislature in Nigeria: Compromised, marginalised and endangered

    The monarch however, appealed to the company to fast track its women empowerment programmes and scholarship to ensure that all communities benefit.

    Speaking on behalf of youths of the area, spokesperson of Niger Delta Ethnic Youth Leaders, Dr Legborsi Yamaabana, pledged the support of youths of the region for the company. He said the company has touched the lives of youths in areas of empowerment and employment, urging the federal government to give more responsibility to the company.

    “They are part of us. We have adopted them as individuals of each of our communities across the Niger Delta.

    We have also adopted them as a special purpose vehicle to bring about peace, development, economic growth and progress.

    “ Lastly, I want to say that we would continue and sustain the support for this company, and we are appealing further to Mr. President and the government to give this company more responsibility because they are not tired of doing good, “ Yamaabana said.

    The meeting was attended by stakeholders from Rivers, Imo and Abia states.

  • Shell plans fresh $20b investment in NNPCL, says GCEO

    Shell plans fresh $20b investment in NNPCL, says GCEO

    Oil giant Shell Plc plans to invest about $20 billion more in Nigeria over the next couple of years, Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer (GCEO) Bayo Ojulari hinted yesterday.

    Ojulari described the fresh investment plan as a renewed confidence in the country’s oil and gas sector, following policy reforms.

    The NNPCL boss dropped the hint after a meeting between President Bola Ahmed Tinubu and Shell’s global leadership, led by its Chief Executive Officer (CEO), Wael Sawan, at the State House, Abuja.

    Ojulari, who described the visit Wael’s first meeting with President Bola Ahmed Tinubu, explained that the purpose was to formally appreciate the President for the executive orders issued early last year to improve Nigeria’s investment climate.

    He noted that although the Petroleum Industry Act (PIA) laid an important foundation for sector reforms, additional incentives were required to keep Nigeria competitive in the race for global capital.

    Ojulari said: “The competition for investment is global,” Ojulari said, pointing out that other African countries, Guyana and parts of the Far East were continually adjusting policies to attract investors.

    “One of the great things that Mr. President did was to announce those executive orders to put additional incentives in place to attract investments.”

    READ ALSO: When hospitals kill

    According to him, the policy shift enabled Shell to complete three major milestones in the last 18 months, beginning with the divestment of its onshore joint venture assets to Renaissance.

    He said the successful conclusion of that transaction demonstrated the administration’s commitment to allowing investors both to enter and exit the market when necessary.

    “That brought confidence to the international community, including Shell”, Ojulari said.

    He added that following the divestment, Shell took a final investment decision (FID) of $5 billion on the Bonga North deep-water project, and later approved another $2 billion investment for a shallow-water gas development project.

    “Overall, since Mr. President announced those incentives, just one company—Shell alone—has already invested over $7 billion,” he said, describing this as evidence of growing investor confidence in Nigeria’s economy.

    Ojulari disclosed that during the meeting, Shell formally committed to pursuing additional investment opportunities worth about $20 billion in the coming years, citing confidence in President Tinubu’s leadership, transparency and demonstrated commitment to reform.

    He said that talks centred on Shell’s next major project, the Bonga Southwest development, on which the company is working toward a final investment decision.

    The project, he noted, would require capital expenditure of close to $10 billion, in addition to substantial operating costs.

    Explaining the broader impact, Ojulari said such projects translate into large-scale job creation, revival of dormant fabrication yards, and long-term employment opportunities over the 20 to 30-year lifespan of oil and gas projects.

    “For many years, fabrication yards have been idle because there were no projects. Those yards will come back to life,” he said, adding that Nigerians would benefit from construction, maintenance, manpower and supply contracts over decades.

    Ojulari said the NNPCL, as concession holder under Nigeria’s production sharing contracts with international oil companies such as Shell, Chevron, ExxonMobil and Total, would continue to work with investors and relevant government agencies to develop credible proposals for approval.

    “Our responsibility is to be the conscience of the government and the conscience of Nigerians, ensuring that the assumptions and promises being made are correct and authentic,” he said, expressing optimism that with continued presidential support, final investment decisions would be reached in due course.

  • Activists seek comprehensive probe of ex-NNPCL’s chief

    Activists seek comprehensive probe of ex-NNPCL’s chief

    • Body slams EFCC’s ‘acquittal’ of firm’s former executive veepee

    a group under North/       South Coalition for Justice, led by Yahaya Dogo, has called on the Presidency, ICPC, Nigerian Financial Intelligence Unit, and the Police leadership to initiate a comprehensive probe into Adokiye Tombomieye’s activities in NNPCL regarding allegations of “criminal enrichment’’ against  him.

    In a statement in Abuja, it condemned the clean bill of health given to the NNPCL’s former executive vice president (Upstream) by EFCC, which investigated his alleged financial improprieties in the company.

    The group said the EFCC probe was fraught with inconsistencies, alleging protesters planning to march against the commission’s unwholesome ‘verdict’ were induced to abandon the demonstration.

    Read Also: Alleged terror financing: DSS arrests ex-AGF Malami

    ​The group’s renewed concerns stem from a recorded voice note wherein Tombomieye allegedly acknowledged compromising a civil society leader to halt a planned protest and news conference.

    Dogo alleged that this spurious effort was intended to suppress public scrutiny of Tombomieye’s financial activities.

    It noted that until the culpable are brought to book, the fight against corrupt practice will remain a mirage.

    Dogo called on the leadership of ICPC to rein in officials of EFCC, who investigated Tombomieye with a view to getting an unadulterated report, adding that the clean bill of health issued to him was suspicious and questionable.

    “We seek transparency, accountability, and moral probity from investigators and the investigated. If Tombomieye could compromise protesters, he could also do same to EFCC, which hurriedly gave him a clean bill of health,”

  • NNPCL debt forgiveness: Group tackles ADC over comments on President’s Constitutional powers

    NNPCL debt forgiveness: Group tackles ADC over comments on President’s Constitutional powers

    The Centre for Energy Governance and Public Finance Accountability has strongly rebutted claims by the African Democratic Congress (ADC) regarding President Bola Ahmed Tinubu’s approval for reconciling and removing legacy balances owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) from the Federation Account. 

    During a press conference at Transcorp Hilton in Abuja on Friday, the group described the ADC’s allegations as unfounded and misleading, emphasizing that the action was not an arbitrary debt forgiveness but a necessary fiscal reconciliation.

    The controversy stems from the President’s directive to remove approximately $1.42 billion and N5.57 trillion in legacy entries from the Federation Account books. 

    These balances, accumulated over decades, include unresolved disputes from production sharing contracts, fuel subsidy obligations, and royalty assessments predating the Petroleum Industry Act (PIA). 

    The Centre argued that maintaining these disputed figures distorted public finances and created unrealistic expectations for revenue distribution among federal, state, and local governments.

    Official records indicate that the reconciliation involved key institutions, including the Federation Account Allocation Committee (FAAC), and focused solely on balances up to December 31, 2024. 

    Executive Director Dr Opialu Fabian stressed that no actual cash was withdrawn from allocations, as these were not collectible revenues but accounting distortions that had persisted despite multiple audits.

    “The Centre for Energy Governance and Public Finance Accountability has convened this important press conference to respond to unfounded claims by the African Democratic Congress (ADC) concerning President Bola Ahmed Tinubu’s approval of the reconciliation and removal of certain legacy balances attributed to the Nigerian National Petroleum Company Limited (NNPC Ltd) from the Federation Account,” the statement said. 

    “The debate has been framed as a constitutional crisis and a deliberate deprivation of revenue due to states and local governments. Given the gravity of such allegations, it is important to ground this conversation in facts, law, and the historical context of Nigeria’s petroleum revenue administration.

    Read Also: Debt forgiveness for NNPCL

    “It is crucial to note that the balances in question are not recent revenues generated under the current administration. They are long-standing legacy entries accumulated over decades, many of them arising before the enactment of the Petroleum Industry Act (PIA). 

    “These entries stem from unresolved production sharing contract disputes, domestic crude supply obligations under the fuel subsidy regime, royalty assessment disagreements, and persistent reconciliation gaps between NNPC, regulators, and revenue agencies.”

    Critics, including the ADC, have invoked Section 162 of the Nigerian Constitution, claiming the President overstepped his authority by approving the removal without broader legislative input. 

    However, the Centre countered that the section pertains only to valid, payable revenues, not disputed or unverifiable claims that could turn the Federation Account into a “repository for accounting fiction.”

    This move aligns with PIA reforms aimed at transforming NNPC Ltd into a commercially viable entity under international accounting standards. By addressing these legacy issues, the administration seeks to enhance fiscal transparency and predictability, benefiting all government tiers through more accurate revenue projections.

    “For years, these balances remained on the Federation Account books despite repeated audits and reviews that questioned their accuracy, legal enforceability, and collectability. Treating such disputed figures as assured income created a distorted picture of public finances and fostered unrealistic revenue expectations across all tiers of government,” Fabian added. 

    “Contrary to claims of an arbitrary executive write-off, the President’s approval followed a formal reconciliation process involving relevant fiscal and regulatory institutions, including presentations made to the Federation Account Allocation Committee (FAAC).

    “Official records show that approximately $1.42 billion and N5.57 trillion were removed from the Federation Account books after reconciliation established that these figures were either duplicated, overstated, unsupported by verifiable documentation, or no longer legally recoverable. The directive applied strictly to legacy balances accumulated up to December 31, 2024.”

  • Debt forgiveness for NNPCL

    Debt forgiveness for NNPCL

    • A strategic move towards improvement

    We are not entirely surprised at the range of opinions that have been expressed after the confirmation that President Bola Tinubu had approved the write-off of the Nigerian National Petroleum Company Limited’s (NNPCL) dollar-denominated debts totalling $1.42bn, alongside local currency liabilities amounting to N5.57tn owed the Federation Account.

    The move, contained in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission and presented at the November meeting of the Federation Account Allocation Committee, was said to be subsequent to a review of records by the Federal Accounts Allocation Committee (FAAC) and the NNPCL.

    The debts are said to relate to production sharing contracts under which NNPCL acts as concessionaire on behalf of the federation, domestic crude supply obligations, repayment agreements, modified carry arrangements, and unpaid royalties.

    Interestingly, while Nigerians are at it, questioning the approval, particularly the powers of the president to write-off the debt, the energy intelligence firm, Argus, has since provided a context that is as compelling as it is difficult to ignore: the need to preserve the treasure pot – a necessary measure to prepare the state-owned energy firm for the long-advertised initial public offering in 2028.

    The firm– referencing industry sources – says the clean-up of the corporation’s balance sheet, which the president’s broad stroke represented, was a necessary exercise to position the company for a public listing, as the country pursues reforms aimed at attracting foreign investment and boosting transparency in the oil and gas sector.

    Read Also: Bashiru to Wike: you lack locus to dabble into APC affairs

    Of course, that the NNPCL had earlier indicated its intention to list part of the company on the stock market following its commercialisation under the Petroleum Industry Act is an open secret. The company had early last year notified Nigerians that the process of hiring IPO advisers, an issuing house, and investor relations consultants had begun, with Lagos, London, and New York being named as potential listing venues – with 20 percent of NNPCL’s equity proposed for grabs.

    Clearly, if we understand the choice facing the country in the circumstances, it comes to whether those debts should be allowed to stall the process and, indeed, the on-going reforms to reposition the sector, or, as the president has done in the case, to proceed by removing institutional obstacles that might impede the successful listing, as potential investors would require clarity on the company’s financial position.

    Given the unenviable position that the country has found itself on the NNPCL debt matter, we are persuaded that the president was right that things proceed as planned. As far as we can see, the alternative, in which the NNPCL would continue in its footloose accounting practices to the detriment of the economy, is unfathomable.

    To the extent that there have been no suggestions that the president acted arbitrarily, given that a body composed of the stakeholders – the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation – actually prepared the recommendation to the president for approval, we actually consider the hair-splitting over pure legalese a most unhelpful distraction at this time.

    Or are the critics saying that the president should simply do nothing? Short of an invitation to stasis, does anyone actually believe that the NNPCL could successfully transition into the envisaged global commercial player without the burden of those legacy debts being laid to rest, particularly now with NNPCL only beginning to crawl out of its ignoble past? Would some Nigerians rather prefer that things drag on interminably because the parties couldn’t agree on the way forward?

     Rather than vilify the president, he should rather be commended for taking the very difficult step to get things moving.

  • NNPCL profit after tax soared to N502 billion in November

    NNPCL profit after tax soared to N502 billion in November

    •Rakes in N4.358tr revenue •Vows to complete AKK pipeline

    The Nigerian National Petroleum Company Limited (NNPCL) yesterday said its Profit After Tax soared to N502 billion in November 2025 from the N447 billion recorded in October 2025.

    This was contained in its November 2025 report, which also noted that in the period under review, the state-owned oil company raked in N4.358 trillion. It was a decline from the N5.08 trillion it earned in the previous month.

    From January to October, according to the report, NNPCL made N12.117trillion statutory payment.

    In the month under review, NNPCL crude oil and condensate output was N1.60 million barrels per day while natural gas production was 6.968 million standard cubic feet/day.

    The report however explained that the November production performance was largely due to planned maintenance activities across key assets (Esso-Erha, Stardeep-Agbami, and Renaissance-Estuary Area) nearing completion, with production recovery expected at the end of December 2025 and continued delays with West African Exploration and Production Company Limited (WAEP) first oil.

    While Ajaokuta Kaduna Kano Pipeline (AKK) was 90 per cent completed, the 127 kilometers Obiafu-Obrikom-Oben (OB3) Gas Pipeline project (OB3) recorded 96 per cent completion in the period under review.

    NNPC stressed that “AKK (Mainline): Significant progress recorded with completion of the mainline welding works and pressure-testing. Project is on course to be completed in 2026.

    “OB3 River Niger Crossing: All required equipment, materials and personnel mobilized to site; geotechnical data acquisition completed and early construction works ongoing in preparation for commencement of drilling.”

    According to NNPCL, as at November there was 100 per upstream availability.

    On Premium Motor Spirit (PMS) availability, the report said NNPCL Retail Limited stations recorded 61 per cent.

    The report revealed that NNPCL has completed the 2025 scheduled facilities turn around maintenance (TAM), and production initiatives from JV, PSC, and NNPC Exploration & Production Limited (NEPL) assets in readiness for delivering the 2026 production plan.

    In the period under review, NNPCL said it intensified collaboration with its partners through year-end and into 2026 to ensure improved production performance, maximise infrastructure uptime, and maintain high facility maintenance standards across all our assets.”

    Read Also: 2026: Be hopeful and confident, Nigeria’s future assured — ICRC DG urges Nigerians

    The report said the rehabilitation of three wards at the National Orthopaedic Hospital, Igbobi Lagos, has reached 90.1 per cent completion as of November 30, 2025.

    NNPC is also reviewing its portfolio and plans to sell non-performing fields, the people said, adding that the firm will likely meet more than half of its fundraising target.

    The energy company owned by Africa’s top oil producer plans to develop some of the fields in-house and is expected to call for bids early next year, the people said.

    A spokesperson for the NNPC declined to comment.

    The company plans to boost oil output by 5% to 1.8 million barrels per day next year compared with 2025 and is targeting 4 million barrels of daily output by 2030.

    It also targets the completion of the $2.8 billion Ajaokuta-Kaduna-Kano pipeline, connecting various segments to the main line from early next year, one of the people said.

    Once ready, the pipeline will deliver gas at scale to parts of northern Nigeria including the capital of Abuja, supplying industrial parks, fertilizer plants and power-generation facilities.