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  • Refining NNPCL fraud

    Refining NNPCL fraud

    A popular definition of insanity arguably attributed to Albert Einstein is doing the same thing over and over and expecting different results. While in law, insanity exculpates an offender from criminal responsibility since the defender is deemed to be afflicted by severe mental illness at the time of committing the crime. The insanity referred to in this piece, is that of the popular highway. So, could it be that Nigerian leaders are afflicted by insanity, for repeatedly plunging billions of dollars to turn around the moribund NNPCL refineries?

    The last leader afflicted was former president, Muhammadu Buhari, who approved nearly $3 billion for the turnaround maintenance of the NNPCL refineries at Port Harcourt, Warri and Kaduna. A report by Punch indicates that the Economic and Financial Crimes Commission (EFCC) is probing the sum of $1,559,084.36 allocated to the Port Harcourt refinery, $740,669,600 spent on Kaduna refinery and the $656,963,939 earmarked for the Warri refinery. Despite the humongous resources expended, the Port Harcourt and Warri refineries barely worked, while Kaduna is still in works.

    President Buhari was not the first to engage in turnaround maintenance of the refineries in recent times.  While the first Port Harcourt refinery was commissioned in 1965, the second one was commissioned in 1989. On its part, the Kaduna refinery was commissioned in 1980, while the Warri refinery was commissioned earlier, in 1978. The refineries which were operating optimally years after commissioning started having challenges, when corruption and politics overwhelmed the turnaround maintenance programs in the 1990s.

    The challenge reportedly arose when the military government of President Ibrahim Babangida, ordered NNPC to transfer its account to the Central Bank of Nigeria. With that, NNPC lost its autonomy, and political interference determined who does the turnaround maintenance, and the release of funds for such technical works. Again, political actors were in position to determine when to do the turnaround maintenance. Available statistics shows that the capacity utilization of the 445,000 capacity refineries plummeted to abysmally low levels following the poor maintenance of the refineries.

    Because of such interference, the turnaround maintenance which ordinarily should be between two to three years, happened only when the political actors wished, or after the refinery has completely packed up, for lack of maintenance.

    After failed turnaround maintenance efforts by the regime of President Olusegun Obasanjo, the majority shares in the refineries were sold to a consortium of Nigeria businessmen, led by Aliko Dangote. The special purpose vehicle known as the Blue Star consortium on May 17, 2007, paid $561 million for 51 percent stake in the Port Harcourt refinery and $160 million for 51 percent stake in Kaduna refinery. Obasanjo sold despite protests by the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). 

    President Musa Yar’Adua who succeeded President Obasanjo wasted no time in cancelling the sale to the popular acclaim of many Nigerians. The civil society groups which alleged that Obasanjo had hidden stakes in the consortium were over the moon that nemesis had caught up with the former president, despite the fact that he handpicked his predecessor. Obasanjo vehemently protested the cancellation, imploring his successor not to succumb to blackmail, since he had done due diligence, before concluding that the refineries were irredeemable in the hands of NNPC.

    The government of Yar’Adua, which was succeeded by President Goodluck Jonathan following the former’s ill-health and death went ahead to spend $396 million in turnaround maintenance of the refineries between 2013 and 2015. President Jonathan, whose government was dismissed as clueless, was succeeded by President Muhammadu Buhari, a former Federal Commissioner for Petroleum and Natural Resources under Gen. Obasanjo’s military government. With a reputation as a no-nonsense former military leader, his promise that the refineries would finally be turned around was taken to the bank by many of his admirers.

    According to media reports which prompted this piece, nearly $3 billion was spent on that mother of all turnarounds. Yet, as my people will say, that thing crying, is still crying. After spending $1.5 billion on turnaround maintenance of the Port Harcourt refinery, the NNPC shut down the plant in May, barely six months after the turnaround, which happened after several years of abandonment. There is no verifiable news whether the so called ‘planned maintenance’ estimated to last one month has ended.

    The Kaduna refinery is reportedly still a work in progress, while the Warri Refinery which started after the turnaround, was shut down over safety concerns in May. There are however conflicting reports as to whether it has restarted again. Instead of exciting results after the humongous expenses, what we are getting is that the EFCC has busted scams committed by the sacked senior officials in the name of the turnaround maintenance. The commission is reported to have recovered N5 billion and $10 million from contractors and government officials.

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    The news report indicates that the commission was working to recover another N10 billion and $13 million linked to bloated contracts by the erstwhile officials. One hopes the economic tragedy associated with the corruption spangled turnaround maintenance of the NNPC refineries would end with the new Board painstakingly assembled by President Bola Ahmed Tinubu.  The team inaugurated on April 2, is headed by Engineer Bashir Bayo Ojulari as Group CEO and Ahmadu Musa Kida as non-executive chairman. The two major actors had stellar experiences under multi-nationals in the oil industry, and one hopes that would come to play in the slippery terrain of corruption in NNPC.

    Nigerians wait to see, how they would deal with the monster of corruption that turnaround maintenance constitutes in NNPC. Will they like their predecessors give Nigeria the false hope that the refineries would be up and running once billions of dollars are budgeted for their maintenance? Or will they show courage and slay the monster that has caused Nigeria several billions of dollars with nothing to show for it.

    Between 1995 to 2020, Business Day newspaper estimates that about $25 billion has been spent on turnaround maintenance of the three refineries in Nigeria. To compound the near worthlessness of our refineries now, the man who led the Blue Star consortium to pay for the Port Harcourt and Kaduna refineries in 2007, has gone ahead to build a private 650,00 barrels per day capacity refinery at a total cost of $19 billion.

    This column has confidence in the competence of President Tinubu to understand and analyse the challenges facing the NNPC refineries. As a political leader, the challenge will be what he will make of the contending monster of political factors which many times trump sane economic decisions. Will the oil industry trade unions, the National Assembly and the presidency, show courage, and slay the monster of corruption that the NNPC refineries have become?

  • Youth leaders, lawyers drag NNPCL CFO to court over failed refinery rehabilitation

    Youth leaders, lawyers drag NNPCL CFO to court over failed refinery rehabilitation

    Ethnic youth leaders across the country and lawyers have dragged the Chief Financial Officer (CFO) of the Nigerian National Petroleum Company Limited (NNPCL), Dapo Segun, to the Federal High Court sitting in Port Harcourt, Rivers State, following the failed rehabilitation of refineries.

    The applicants in the suit are seeking mandatory removal, arrest, investigation, and prosecution of the CFO in connection with the failed revival of the Port Harcourt and Warri refineries as well the acquisition of the OVH Energy by the NNPCL.

    The aggrieved stakeholders in the suit named the Economic and Financial Crimes Commission (EFCC) as the first defendant and prayed the court to make an order directing the EFCC to probe the activities of Segun. 

    The suit named Ezekiel Amadi, Bamidele Moses, Amaefule Innocent as the applicants for themselves and on behalf of the Ethnic Youth Council.

    The applicants through their lawyer, M.O Osuji, are asking the court to make “an order granting leave to the applicant to bring an application for mandamus directing the 1st defendant to commence investigation of the activities and role of the second defendant as the Chief Financial Officer of the Nigerian National Petroleum Company Limited, in connection with the acquisition of the of OVH Energy by the NNPCL and rehabilitation of the PortHarcourt and Warri refineries”.

    Read Also: NNPCL, PTDF sign MoU to deepen technology

    They are also “seeking an interim order of the court directing the second respondent (Dapo Segun) to forthwith step aside as the Chief Financial Officer of the Nigerian National Petroleum Company Limited and cease the performance of any duty pertaining thereto, tampering with or altering any documents or records material to the investigation into his conduct and/or role in the acquisition of the of OVH Energy by the NNPCL and rehabilitation of the Port-Harcourt and Warri Refineries, pending the hearing and determination of the Substantive Motion on Notice for Judicial Review”. 

    The applicants further demanded an order of court granting Leave to the Applicant to serve the motion on notice for judicial review and any other process(es) in this Suit on the second defendant by substituted means to wit: delivering all the aforementioned court processes to the Legal Department of the Nigerian National Petroleum Company Limited at its head office at Central Business District, Abuja. AN ORDER OF COURT directing an accelerated hearing and determination of this Suit.”

  • NNPCL, PTDF sign MoU to deepen technology

    NNPCL, PTDF sign MoU to deepen technology

    The Nigerian National Petroleum Company Limited (NNPCL) – through its Research, Technology, and Innovation (RTI) subsidiary – a Memorandum of Understanding (MoU) with the Petroleum Technology Development Fund (PTDF) to deepen technology-driven solutions in the oil and gas industry.

    President, Business Services, NNPC Ltd, Vice President Sophia Mbakwe, in her remarks at the ceremony in Abuja, noted that the signing reflects the resolve to harness collaboration to address real-world challenges, deliver scalable solutions, and create lasting impacts.

    “The MoU unites our strengths to advance local content, foster technology adoption, and develop the next generation of energy professionals. Together, we will pursue initiatives in research, innovation, skills development, and commercialisation of solutions to address industry challenges,” she added.

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    PTDF Executive Secretary, Ahmed Galadima Aminu, described the partnership as a commitment to national progress built on mutual trust and aligned objectives.

    He said: “By leveraging PTDF’s research infrastructure and NNPC Ltd. RTI’s laboratories, we are establishing a robust foundation for collaborative testing, validation, and deployment of breakthrough technologies in areas such as refinery catalyst production, biofuel production, oil and gas drilling operations, and geological mapping.”

    The MoU covers key areas of collaboration, including joint research and development activities, technical support, data and knowledge sharing, infrastructure and innovation hubs, local content development, and capacity building.

  • Govt slashes revenue deductions by NNPCL, FIRS, Customs, others

    Govt slashes revenue deductions by NNPCL, FIRS, Customs, others

    A review of deductions and revenue retention by major revenue-generating agencies has been directed by President Bola Ahmed Tinubu.

    The purpose, according to the Minister of   Finance and Coordinating Minister of the Economy, Mr Wale Edun, is to boost public savings, check profligacy, and unlock resources for economic growth.

    Revenue-generating agencies covered by the order are the Nigerian National Petroleum Company Limited (NNPCL), Federal Inland Revenue Service (FIRS), Nigeria Customs Service(NCS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC)  and  Nigerian Maritime Administration and Safety Agency (NIMASA).

     The review order was given by President Tinubu at yesterday’s Federal Executive Council (FEC) meeting in Abuja.

    According to Edun, the President specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

    The   Economic Management Team, chaired by the Finance Minister,  is to present actionable recommendations to the FEC on the best way forward.

    The President said the directive was part of efforts to sustain reforms that have dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investor confidence.

    According to him, these reforms have created a transparent, competitive business environment attractive to local and foreign investors in critical sectors such as infrastructure, oil and gas, health, and manufacturing.

    Reaffirming the Renewed Hope Agenda, Tinubu said Nigeria’s goal of a $1 trillion economy by 2030 requires growth of at least 7% annually from 2027. He described the target as “not just economic, but a moral imperative ” in tackling poverty.

    He cited the July 2025 IMF(International Monetary Fund) Article IV report, which endorsed Nigeria’s economic trajectory and the need for investment-led growth.

    Highlighting grassroots empowerment, the President pointed to the Renewed Hope Ward Development Programme — a ward-based initiative covering all 8,809 wards across the country — designed to lift economically active citizens through micro-level poverty reduction strategies. 

    Tinubu noted that public investment accounts for just five per cent of the nation’s Gross Domestic Product( GDP) due to low savings.

    He also stressed that optimising “every available naira” is vital, especially under current global liquidity constraints.

    Edun said macroeconomic indicators were improving, with a more stable exchange rate, easing inflation, rising revenues and an acceptable debt-to-GDP ratio.

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      Edun also explained that he presented two memoranda to FEC— a $125 million Islamic Development Bank financing for infrastructure in Abia State. The fund will be spent on 35 kilometres of roads in Umuahia, 126 kilometres in Aba,and N4 trillion for the refinancing of outstanding electricity sector obligations.

    N13bn  for ROW compensation, $34m for  transformers 

    FEC also approved four major proposals from the Ministry of Power in a renewed drive to reform and strengthen the national grid and meet rising electricity demand nationwide.

      Power Minister Adebayo Adelabu said the first approval is the release of N13 billion for compensation on right-of-way acquisitions under the Lagos Industrial Transmission Project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA).

    The project is for boosting power supply to key industrial clusters in Lagos, which accounts for a large share of the nation’s manufacturing output.

    “This funding covers compensation to property owners and communities affected by the transmission lines’ route. Once completed, the Lagos Industrial Transmission Project will ensure that our industrial estates have the dedicated, stable power they need to drive economic growth and create jobs,” Adelabu explained.

    The other three approvals, according to him, centred on the procurement and installation of high-capacity transformers to replace weak, overloaded and obsolete units on the national grid.

    The equipment procurement is valued at $34 million, with an additional N5.2 billion for associated costs.

    The breakdown includes: two units of 150MVA 330/132kV transformers; three units of 100MVA 132/33kV transformers; five units of 60MVA 132/33kV transformers; and two units of 30MVA 132/33kV transformers.

    “These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building,” the minister said.

    Adelabu described Nigeria’s national grid as an ageing system, much of which has been in operation for over 50 years.  

    He said: “Many of the transformers, cables and related components are weak and prone to failure. Regular maintenance and timely replacement are essential if we are to achieve a stable, reliable and effective grid that meets the needs of households, offices, small businesses and industries.”

    MDAs get next month deadline 

     Ministries, Departments and Agencies (MDAs) still processing contracts under  last year’s  Appropriation  yesterday got end of  next month’s deadline  to complete their procurement.

    The order was given via a directive by the President afer receiving the brief from Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun at yesterday’s FEC meeting.

    According to the directive, which was presented to reporters at the State House, Abuja by the Minister of Information and National Orientation, Mohammed Idris, the BPP said over 70 ministries, departments and agencies (MDAs) are yet to conclude procurement for 2024 projects, even though the budget year should have ended last December.

    While the law was extended to allow for full implementation, the bureau noted that it is now more than 20 months since its passage, warning that  delays could result in avoidable liabilities for government.

    The brief recommended that President Tinubu obtain a full account of all projects awarded by ministers and their ministries, with ministries and  agencies directed to submit lists of projects for both the 2024 and 2025 fiscal years.

    This aligns with the Secretary to the Government of the Federation’s circular on project reporting.

    Reaffirming the administration’s Nigeria First policy, the BPP urged MDAs to give priority to locally made goods and services in project execution, provided they meet international standards and are certified by relevant government authorities.

    The bureau, working alongside the Central Results Delivery Coordination Unit, will monitor compliance and forward reports to the Presidency for  action.

    On the 2025 budget cycle, the BPP advised that a significant share of projects be procured through open competitive bidding to stimulate job creation and reduce poverty.

    It also recommended that the BPP Director-General be included in all bilateral loan negotiations for infrastructure projects, ensuring professional oversight of procurement decisions and cost assessments.

    The bureau  expressed concern over persistent non-compliance with the Public Procurement Act by some government-owned companies and enterprises, despite the Finance Act 2020 mandating adherence.

    It warned that such disregard has fostered financial recklessness in certain entities and called for strict enforcement to bring all procurement activities in line with the law.

    Also yesterday,  the FEC approved the building of modern bus terminals in each of the nation’s six geo-political zones at  ₦142,028,576,008.17.

    Minister of Transportation, Senator Sa’idu Ahmed Alkali, broke the news  after the FEC meeting.

    He said  the contract had  been awarded to Messrs Planet Project Limited.

    The terminals will be sited in Abeokuta (Southwest), Gombe (Northeast), Kano (Northwest), Lokoja (Northcentral), Onitsha (Southeast), and Ewu in Edo State (Southsouth).

    Senator Alkali described the project as the Federal Government’s first direct intervention in road transport infrastructure beyond road construction.

    He noted that the locations were selected for their economic viability.

    The minister said the absence of purpose-built bus terminals to serve millions of Nigerian commuters had contributed to increased crime, road traffic accidents, and the proliferation of arms and ammunition on the country’s highways.

    “In spite of the significance of road transportation in Nigeria, there are no bus terminals that address the needs of millions of commuters. This has resulted in increased crime, road traffic accidents, and the spread of arms on our highways”, Alkali said.

    The minister explained that the initiative, conceived by the Ministry of Transportation, is aimed at improving road safety, enhancing passenger comfort, and stimulating economic activities.

    He added that the proposal was brought before President Tinubu and the FEC for approval after a thorough assessment of its potential impact on national transportation and security.

    Fed Govt reviews Kano–Katsina Road contracts, moves to replace Carter Bridge

    A Major review  of some road contracts including  the 152-kilometre Kano–Katsina highway and the Lagos’s ageing Carter Bridge was yesterday approved  by the  Federal Executive Council (FEC).

    The meeting was  presided over by President Bola Tinubu.

    Minister of Works, David Umahi, broke the news to  reporters after the meeting at the State House, Abuja.

    He said that both sections of the Kano–Katsina Road — awarded by  previous administrations — have been significantly adjusted to reflect present-day economic realities.

    The first section, 74.1km long and initially awarded in 2013 for N14 billion before being reviewed to N24 billion, has now been revalued at N68 billion, with N6 billion provided in the 2024 budget and N34 billion in 2025.

    The second section, 79.5km, first awarded in 2019 for N29 billion and later adjusted to N46 billion, has been revised to N66.115 billion, with N80 billion allocated between 2024 and 2025.

    Umahi also announced progress on the 30.2 km Iyin–Ilawe Road in Ekiti State. The  project has been  split into three segments.

    The first 10km section is ongoing. Sections Two and Three —  10.1km each — have been awarded at N16.777 billion and N17.275 billion .

    On bridges, the minister said that urgent technical assessments on Carter Bridge and the Third Mainland Bridge in Lagos revealed severe underwater structural deterioration, largely from sand erosion caused by illegal mining.

    Julius Berger, contracted for underwater repairs, recommended Carter Bridge’s immediate closure and replacement.

    It estimated about N359 billion for a new structure, with discussions on funding  already opened with Dutch Bank.

    Similar issues were discovered  on the Third Mainland Bridge. It is projected to cost N3.6 trillion.

    The Council  has approved the engagement of at least seven specialist contractors under EPC+F arrangements for detailed investigation, design, and bidding for either rehabilitation or total reconstruction of both bridges.

    The Council also authorised advertisements for Public-Private Partnership (PPP) bids.

    Beyond Lagos, Umahi said FEC approved interventions on multiple critical bridge failures nationwide, including the Jalingo Bridge in Taraba, the burnt Ido Bridge, the Keffi Flyover, Mokwa Bridge in Niger, collapsed bridges on the East–West Road in Delta and Bayelsa, the Lagos–Ibadan corridor, and the near-split Itoikin–Ikorodu Road.

    Emergency works on these structures will be consolidated and forwarded to the Minister of Finance for presidential approval.

    He noted that ongoing  works also include Jimeta Bridge in Adamawa, Mutamame Bridge in Kogi, Jebba Bridge in Niger, Gashua Bridge in Yobe, Eko and Marine bridges in Lagos, Bibi Bridge in Taraba, Artisan Bridge in Enugu, Apowa Bridge in Ebonyi, Opobo Bridge in Rivers, Baro Bridge in Niger, and Buruku Bridge in Benue.

    “We are tackling both long-standing structural problems and sudden emergencies to safeguard lives and the economy,” Umahi stated.

  • NNPCL secures Appeal Court victory against Ararume’s N5b suit

    NNPCL secures Appeal Court victory against Ararume’s N5b suit

    The Nigerian National Petroleum Company Limited (NNPCL) said it secured Appeal Court victory to avoid its former board chairman, Senator Ifeanyi Ararume’s N5 billion damages suit.

    A statement by the state-owned oil firm reads in parts: “On August 8, 2025, the Court of Appeal, Abuja Division, upheld NNPC Ltd.’s appeal against the Federal High Court’s April 2023 judgement that annulled Senator Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him ₦5 billion in damages.

    “The Court of Appeal’s judgement spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021.

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    “The Appeal Court agreed to NNPC Ltd.’s position that the Federal High Court’s earlier decision was delivered in error, noting amongst others, that the claim was statute- barred.

    “This decision of the Court of Appeal secures governance stability for NNPC Ltd., sets a corporate governance precedent in Nigerian law, and upholds the validity of Board resolutions critical to the oil and gas industry’s investment and policy direction.”

  • NNPCL, PTDF sign MoU to deepen technology -driven solutions

    NNPCL, PTDF sign MoU to deepen technology -driven solutions

    The Nigerian National Petroleum Company Limited (NNPCL) – through its Research, Technology, and Innovation (RTI) subsidiary – a Memorandum of Understanding (MoU) with the Petroleum Technology Development Fund (PTDF) to deepen technology-driven solutions in the oil and gas industry.

    President, Business Services, NNPC Ltd, Vice President Sophia Mbakwe, in her remarks at the ceremony in Abuja, noted that the signing reflects the resolve to harness collaboration to address real-world challenges, deliver scalable solutions, and create lasting impacts.

    “The MoU unites our strengths to advance local content, foster technology adoption, and develop the next generation of energy professionals. Together, we will pursue initiatives in research, innovation, skills development, and commercialisation of solutions to address industry challenges,” she added.

    Read Also: Expert cautions on NNPCL’s pullout from road tax credit scheme

    PTDF Executive Secretary, Ahmed Galadima Aminu, described the partnership as a commitment to national progress built on mutual trust and aligned objectives.

    He said, “By leveraging PTDF’s research infrastructure and NNPC Ltd. RTI’s laboratories, we are establishing a robust foundation for collaborative testing, validation, and deployment of breakthrough technologies in areas such as refinery catalyst production, biofuel production, oil and gas drilling operations, and geological mapping.” 

    The MoU covers key areas of collaboration, including joint research and development activities, technical support, data and knowledge sharing, infrastructure and innovation hubs, local content development, and capacity building.

  • Expert cautions on NNPCL’s pullout from road tax credit scheme

    Expert cautions on NNPCL’s pullout from road tax credit scheme

    Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has warned that the decision of the Nigerian National Petroleum Company (NNPC) Limited to pullout from the Road Infrastructure Tax Credit Scheme (RITCS) would create significant funding gaps in roads infrastructure.

    The RITCS was an initiative launched during the administration of the late former President Muhammadu Buhari in 2019 via Executive Order 007. It was designed to allow private sector investors to fund the construction and rehabilitation of key road networks in exchange for tax credits equivalent to their investment.

    “Roads infrastructure is very critical for the country’s productivity and economic development.  Innovative financing options is inevitable.  These include exploring other PPP options, like fuel tax to be used exclusively for funding of roads.  But the timing of introducing such a tax must  be strategically chosen. There is also the option of PPP that would involve the tolling of roads. The country cannot afford a further deterioration of the roads,” Yusuf opined.

    According to CPPE boss, Nigeria is currently facing a  major infrastructure financing challenge, with road infrastructure financing being perhaps the most critical of these challenges at the moment.

    He argued that it has become clear that dependence on government budgets or borrowing to exclusively finance road infrastructure is not sustainable as fixing the huge road infrastructure deficit requires innovative financing strategies.

    “Although,  in reality the scheme amounts to spending government revenues upfront, which ofcourse has implications for future cash flow of the government. There was also the argument by the subnationals that it was unconstitutional for the NNPC to effect tax credits deduction from its remittances to the federation account.  There is also the worries in parliament about aligning the tax credit scheme to the annual appropriation processes. But the reality is that the road infrastructure development in the country has benefited from the RITCS.  We already have proofs of concept,” Yusuf said.

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    Under the RITCS, he further explained, government had on boarded NNPC,  Dangote Group,  NLNG,  BUA Group,  MTN, ACCESS BANK into the scheme with most of them delivering quality road infrastructure.

    For instance, the Dangote Group  constructed the 34km Apapa-Oworoshoki-Ojota expressway; it also delivered 43km Obajana -Kabba road. The NLNG delivered  38km Bodo – Bonny road.  Others on the  RITCS have similarly constructed some roads. The roads delivered were of quality and the delivery was on time.

    According to a report from the Federation Account Allocation Committee (FAAC), the NNPC has committed $577.6 million and N822.3 billion to the programme over 16 months. Nowwith the national oil firm’s pullout from the scheme, the federal government will require N3 trillion to complete road projects awarded under the NNPC-led tax credit model.

    Data from the Federation Account Allocation Committee (FAAC) shows that NNPC’s last dollar payment to the scheme was made in December 2024, with $52.5 million remitted that month. By the end of that year, cumulative dollar contributions reached $577.6 million, after which deductions reverted to naira payments—N151.27 billion in January 2025 and N671.04 billion in April 2025, bringing the naira total to N822.3 billion. These figures exclude the company’s contributions before 2024.

    The withdrawal of such a key player has sparked concerns over the fate of several high-profile projects, including the Lagos–Badagry Expressway, the East–West Road, and the Nembe–Brass Road, among others, it was gathered that NNPC’s decision to pull out aligns with its post–Petroleum Industry Act (PIA) transformation into a fully commercial entity, prioritising profitability and operational efficiency over the quasi-fiscal obligations that once defined its government-mandated spending.

  • Averting the gathering storm at NNPCL

    Averting the gathering storm at NNPCL

    By Dan Aibangbe

    The NNPC remains the life-blood of the Nigerian economy in terms of governmental revenue earnings as well as fuel for industrial and domestic productivity. The successes and failures resulting from the activities of this mega – corporation have far – reaching effects on the entire populace. No wonder, everyone is keenly interested in every bit of whisper relating to this entity.

    The bane of this money spinner income determinant and blood of the nearly mono-product economy is its notorious opacity, endemic corruption and legendary inefficiencies that are anathema to the private sector. The figures being bandied around are earth-quacking and heart-rending, for an economy plagued by ‘multidimensional poverty’. Things have gone so bad that the natural reaction to any further news or rumours of corruption is the lynch-them attitude of the hardship-infested citizenry.

    For close to an ‘eternity’, the hopes of citizens and in fact regional populace have been dashed, with Nigeria being unable to supply the energy needs of her citizens and neighbouring West African nations. Lack of refinery capacity, huge draw-down on foreign exchange, poor distribution logistics, subsidy-induced smuggling, oil-theft, carnage from the mobile bombs called petrol tankers, environmental degradation from spillages, etc. are among the myriad of problems. The quantum increases in price of PMS releases price shocks unto the entire economy, so much so that everyone from middle-class down are financially anaemic today. There is pervasive hardship across the land.

    Every successive administration has been making feeble attempts to tackle or ameliorate the challenges, with little or no significant successes, until the present ‘Renewed Hope’ administration boldly bit the bullet and yanked-off the major artery feeding the corruption behemoth – subsidy! Today, the story is changing rapidly – Nigeria is transiting from being a major importer of refined petroleum products to a major exporter. Trust the private sector to respond to positive stimuli in such lucrative scenarios. The moribund refinery licences are springing to life, with additional new projects initiated to add more than 900,000 bpd to the basket. The Dangote Refinery, for instance, is now a noticeable disruptor of the energy value-chain in Africa and Europe!

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    However, the problems with the NNPC appear intractable! The so-called refineries Turn-Around Maintenances, TAM continue to be a mirage and money guzzling Godzilla of sorts! Most recently, a monumental scam emerged, when the touted successful refurbishment of the Port-Harcourt refineries ended up as a monumental hoax that failed to produce any refined product! This resulted in the eventual unceremonious exit of the penultimate GMD, Mele Kyari, the longest serving GMD, who successfully transited the entity from the corporation to the Limited Liability Company in July, 2022. At the time of his removal in April, he was just three months short of six years in the saddle and the longest tenure at the helms of affairs. Among his major achievements were his longevity in office, his monumentally corrupt tenure, his ability to deceive the entire nation on the success of an unsuccessful TAM and the recurrent inflated import figures that resulted in massive subsidy claims.

    Along came the announcement of sweeping changes that saw the exit of the entire management team and Board of the NNPCL. The nation heaved a sigh of relief that at last, the government finally meant business with the business of petroleum energy supply and free market that engenders growth and rapid investments by the private sector. The clean sweep came with the selection of what insiders in the sector saw as the Dream-Team, consisting of great technocrats of the oil sector.

    Fast-forward to August 1, the NNPCL GMD/CEO, Bayo Ojulari was rumoured to have submitted his resignation letter written from an undisclosed location. This is coming barely 120 days into office, during which he has established new footprints of accountability, transparency, efficiency, and profitability in the NNPCL. Ojulari has been unapologetically focused on delivering a company that can compete globally through innovations in cost optimization, digital transformation, new revenue streams and improved stakeholder engagement.

    Ojulari is tightening most leakages by ramping up financial disclosures, project due diligence, and procurement transparency, closing the loopholes that have historically enabled billions in revenue losses. The workforce is being professionalized through merit-based appointments, performance audits, and executive accountability. The previous structure where loyalty and patronage superseded competence is being dismantled.

    Ojulari, a globally respected Petroleum Engineer and Strategist with more than three decades of experience in the Oil & Gas industry, has managed complex upstream and integrated energy projects. Before assuming office at the NNPCL, he had carved a legacy for himself at Shell Nigeria Exploration and Production Company (SNEPCo), where he led deep-water operations and championed local content development. He had put in decades of meritorious service chequered with great results within the industry and in many organisations since his debut at Elf Aquitaine as the first Nigerian process engineer before joining Shell in 1991. His career path also spanned the Middle-East and Europe.

    Sadly but expectedly, some industry operatives are now going for the jugular of Bashir Ojulari. Within just four months in the saddle, the touted knight-in-shinning-armour is being painted as a villain. The people are making a masterpiece of the absurd and turning a treasure into graffiti! The long and short of it is that they want Ojulari to go! Their tactics is to turn him into an enemy of the powers that be!

    Nigeria cannot afford to shatter the renewed hope for a sanitised, efficient and profitable national oil company comparable to Saudi’s ARAMCO and the Brazilian PETROBRAS. Nigeria needs to have a new day and truly Renewed Hope today.

    •Aibangbe is a Media & Public Relations Consultant

  • Itsekiri communities get August 31 deadline for bursary entries

    Itsekiri communities get August 31 deadline for bursary entries

    The Office of the Sole Representative of the Olu of Warri to NNPCL has issued an August 31 deadline to targeted Itsekiri communities across Warri Federal Constituency, parts of Delta Central Senatorial District, and Edo State, to submit three eligible students each for the Ogiame Atuwatse III, CFR Itsekiri Students’ Bursary Scheme.

    A statement released Friday, in Warri, revealed that 746 candidates have already been shortlisted since the close of the initial application window.

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    The extension aims to hit the target of 1,000 beneficiaries, giving communities a final chance to nominate qualified indigenous people.

    The eligibility requirements state that the applicants must be Itsekiri by origin, 200 level students or above, and must present an admission letter, transcript, and other relevant academic credentials.

    “Communities are strongly advised to cross-check the current shortlist to avoid nominating students already selected,” the statement warned, adding that “duplicate submissions will not be considered.”

  • NNPCL urges Africa to embrace tech in energy transition

    NNPCL urges Africa to embrace tech in energy transition

    The Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, yesterday called on Nigeria and other African countries to chart their course in the global energy transition by embracing technology, building cross-border alliances, and investing in human capital development.

    Ojulari made this call while delivering his keynote address virtually at the opening of the 2025 Nigeria Annual International Conference and Exhibition (NAICE), themed: “Building A Sustainable Energy Future: Leveraging Technology, Supply Chain, Human Resources and Policy.

     He said: “We must recognise the future of energy is neither linear nor pre-determined; it is shaped by the decisions we make, and how we intentionally engage, strategically invest, and boldly embrace innovations.”According to him, the oil and gas industry must be repositioned as the cornerstone of a sustainable, inclusive, and resilient energy future adding that energy must be repositioned as an inclusive energy future.

    He warned against adopting externally imposed transition models, stating, energy transition must not be imposed; it must be contextualised, just, and negotiated.

    “Many of our people are yet to attain basic energy access. Our people need energy, and our approach must be balanced and anchored on energy justice,” he said.

    Ojulari explained that Africa faces complex, interrelated challenges, including climate change, capital flight, technology gaps, and supply disruptions, which, according to him, cannot be effectively tackled in isolation.

    Read Also: NNPCL targets 50% discount on vehicle CNG conversions for Nigerians

    He stressed the need for collective solutions and dialogue, adding that there is a need to deepen alliances across regional lines.

     He therefore called for fostering of robust, transparent dialogue among all stakeholders, insisting that through partnership, the industry can achieve greater feats.

    He urged inclusive engagement involving all stakeholders, including government, financiers, civil society, and the youth.

     “We must foster robust and constructive dialogue among all stakeholders – government, industry players, financiers, multilateral institutions, technology leaders, civil society, and our youths,” he admonished.

    Highlighting areas critical to net-zero goals, he listed carbon capture, utilisation, and storage (CCUS), hydrogen, AI-driven exploration, smart grids, and modular/mobile gas solutions.

     “Such innovation must be embraced not as buzz words but as strategic enablers that will allow us to achieve our net zero target without compromising energy access for industrial and residential purposes,” he noted.

    He added that Nigeria and Africa will require massive investments to meet growing energy needs: “Large resources and infrastructure will be required to quench the energy thirst of Nigeria and Africa.”

    Ojulari further emphasized: “We have ourselves at a critical inflection point where the imperative of energy security, environmental sustainability, and economic development must be reconciled.

    “Through bold leadership, our collective innovation and our shared responsibilities…”

    He advocated for strengthening investment frameworks:

     “We need to urgently derisk our environment by improving governance, streamlining regulatory frameworks, and honouring contracts, ensuring a transparent fiscal system.

    “We must also leverage instruments such as blended finance and climate-resilient funds and attract strategic investors with long-term commitments.”

    He said: “This is a call for joint stewardship where government and industry players co-create investment environments that are credible, attractive, and future-focused.

    “If we succeed, the result will be a pipeline of well-funded, technologically enabled, socially inclusive energy projects that not just generate profit but also resilient and uplift communities.”

    He also called for the use of petroleum resources to develop renewables, promote clean cooking technologies, and decarbonise heavy industries.

    “Calling clean cooking technologies to displace biomass and deploying CCUS to decarbonise heavy industry, using the resources of petroleum to develop funds for renewable and also develop human capacity and infrastructure to create a pathway where hydrocarbon and technology co-exist, each playing a role in getting a modern energy system for Africa,” he said.

    He stressed the importance of youth engagement and STEM education in driving the continent’s energy future.

    “Transition is about people and not about fuel. The future cannot be achieved without the hearts and minds of the young ones. We need the innovators of tomorrow to understand the energy narrative and shape it, and lead it.

    “They must lead the future energy narratives to shape it and lead it. Let us invest in STEM and empower our youth to see the energy sector as not just based on extraction but a space for invention and inclusion of global relevance where resources are mined.”

    Ojulari, therefore, emphasised that the action taken today will determine the future of the planet.

    He charged, “Let us put in partnership, mobilise capital and embrace technology, and let us lead the energy transition on our terms and in our context with our people at the centre.

    “This is the moment to act and not to hesitate. We need to act with conviction and not in isolation but in cooperation, and together we can build an industry that is profitable but purposeful, not only efficient but enduring, not only relevant but revolutionary,” Ojulari said.

    Ojulari, therefore, emphasised that the goal of the national oil company is not just for today, but to build a sustainable energy future for generations to come.