Fact Over Assumption: NNPC’s New Drive for Openness and Reform

By Enam Obioso For years, the Nigerian National Petroleum Company Limited (NNPC Ltd)  lived at the intersection of perception and reality, its reputation shaped as much by public sentiment as by its internal dynamics. That tension lingered in the air on Monday evening when Mr. Andy Odeh, Chief Corporate Communications Officer, addressed a select audience of journalists and industry experts in what he described as a long-overdue engagement, one designed to confront a problem that has followed the national oil company for decades: assumptions. ‘Reducing the Quantity and Quality of Assumptions’ Odeh spoke with the candor of someone who knows the industry’s sensitivities from within. Drawing on his two and a half decades at Nigeria LNG Limited (NLNG), he admitted that he too once shared many of the misconceptions about NNPC, until firsthand experience revealed the complexity behind its operations. “Any opportunities we have to reduce the quantity and quality of assumptions are important,” he said.The event, he explained, stemmed from an internal reflection two weeks earlier as the company prepared to release its 2024 audited financials. The goal was to open the books and the thinking behind them to a small circle of informed professionals. “For those who know the sector, you are actually the first advocates,” he told the room. Representing the Group Chief Executive Officer, Odeh emphasized that the session was not about defending NNPC, but about building a fact-based dialogue that narrows the gap between perception and reality. Numbers That Tell a Story The numbers unveiled that evening were striking: In a year marked by market volatility, exchange rate instability, and inflationary pressure, the results pointed to a resilient organization executing with steadiness and discipline. But beyond the celebration of figures, the night invited scrutiny, a conversation between facts and perspectives. The Professors Weigh In The first to speak was a Professor Emeritus, Wunmi Iledare who urged the company to focus more on cost efficiency. “Price is market-determined and volume is geological. Cost is the only lever NNPC can truly control,” he said.He likened Nigeria’s relationship with NNPC to a football field where “every citizen feels like a petroleum expert,” a sentiment he said often fuels misunderstanding. He also cautioned against expecting perfect outcomes overnight, given the company’s ongoing transition under the Petroleum Industry Act (PIA) of 2021. What matters, he said, is measurable progress, and on that score, NNPC had indeed advanced in six key areas. Next came Professor Uche Uwaleke, a former state Commissioner of Finance and member of the FAAC Post-Mortem Committee. He recalled years when FAAC meetings stalled over NNPC’s reports. “This year is different,” he noted, pointing to PwC’s unqualified audit opinion and a profit increase from ₦3.3 trillion to ₦5.4 trillion. He credited the performance to improved crude volumes, cost optimization, and stronger procurement processes. “This is a full year we can compare. This is an improvement,” he said, though he added that the company’s ambitious targets must be examined carefully. The Questions That Remain Uwaleke’s remarks cut to the heart of future expectations:Can NNPC truly achieve 2 million barrels per day by 2026, and 3 million barrels per day by 2030?Can gas production expand to 10–12 billion cubic feet per day within that timeframe?And how soon will the refineries and the $60 billion investment pipeline become reality? The questions were not confrontational but constructive, mirroring the company’s own acknowledgment that transparency is an ongoing process, not a one-time declaration. A Company in Transition NNPC’s 2024 strategy reflects its broader ambition: The session ended as it began, with candor and curiosity. For NNPC, it was an invitation to let experts and the public judge its progress through evidence rather than rumor. For the experts, it was an opportunity to test the company’s story against reality. What emerged was not a debate over perfection, but a measured conversation about progress, accountability, and the long path ahead for Nigeria’s most consequential energy enterprise.

CNG-Powered Vehicle Explodes In Edo, Scores Injured

Tragedy struck Thursday morning in Benin City, the Edo State Capital following the explosion of a Compressed Natural Gas (CNG) powered vehicle at NIPCO filling station, Aduwawa, along the Benin-Auchi Expressway. In a viral video making round on social media, the vehicle was vividly scattered while people around the vicinity ran for dear lives as the loud sound from the explosion created panic among residents in the vicinity. Three persons were said to have sustained various degrees of injuries and have been rushed to a private hospital for medical attention. The explosion is coming on the heels of safety concerns raised about the conversion of petrol-powered vehicles to CNG as advocated for by the Federal Government as a measure to lower the cost of transportation following the removal of fuel subsidy.

NNPC announces recruitment 

By Doris Isreal Ijeoma The Nigerian National Petroleum Company Limited is set to hire more workers. The NNPC spokesperson, Olufemi Soneye, confirmed this in a statement on Friday. Soneye said the recruitment would be for various positions across various departments within the energy company. He directed interested applicants to visit the NNPC careers page for application instructions. “NNPC Ltd is pleased to announce that we are currently hiring for multiple positions across various departments. We are seeking talented and dedicated individuals to join our team. Visit our careers page for application instructions,” Soneye stated. In an update, Soneye disclosed that due to unprecedented traffic to the NNPC Ltd career page from applicants applying for vacancies, the site is currently experiencing slow load times. “Our techs are working diligently to rectify the problem. “Please be assured that the application process deadline remains Aug 20, 2024,” he disclosed. This may be the major recruitment exercise since the NNPC fully transformed into a limited company in 2022.

NNPC secures $3bn loan from AFRIEXIM Bank to boost FX market, bolster naira

In a significant move, the Nigerian National Petroleum Corporation Limited (NNPCL) has entered into a substantial crude repayment loan agreement amounting to $3 billion with the esteemed AFRIEXIM Bank. This financial endeavor is set to play a pivotal role in the stabilization of the foreign exchange market and the support of the Nigerian currency, the naira. The NNPC Ltd., in collaboration with AfriEXIM bank, has formalized their commitment through the signing of a letter of commitment and a Termsheet for a crucial $3 billion crude oil repayment loan. This momentous event unfolded at the headquarters of the bank, situated in Cairo, Egypt. The loan’s provisions encompass immediate disbursement, thereby empowering NNPC Ltd. with the resources necessary to provide substantial backing to the Federal Government’s ongoing fiscal and monetary policy reforms. These reforms are meticulously crafted to achieve a fundamental goal: the stabilization of the exchange rate market. By securing this substantial loan, NNPC Ltd. has taken a substantial step towards reinforcing the Nigerian economy. A statement from the company on Wednesday read: “The NNPC Ltd. and AfriEXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3 billion crude oil repayment loan. “The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.”

Oil production falls below benchmark to 998.6bpd in April

Nigeria’s oil production in April 2023 fell below the one million mark – the lowest in seven months – as the production figure fell to 998,602 barrels per day (bpd). This is a 21.26 per cent decline compared to March, when output was 1,268,202 bpd. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for April 2023. The volume of production is at its lowest point in the last seven months. In the previous year, oil production fell below one million bpd in August and September owing to several issues, including oil theft. According to the NUPRC report, oil production decreased from 1.517 million bpd in March 2023 to 1.245 million bpd in April 2023, with the addition of condensate. Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil. It is usually separated from a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions. Speaking about the current oil output on Wednesday, the Chief Executive Officer (CEO) of the NUPRC, Gbenga Komolafe, said that oil production is currently about one million bpd below “its technically allowable capacity”. Komolafe, who was represented by the Executive Commissioner for Economy, Regulatory, And Strategic Planning, NUPRC, Kelechi Ofoegbu, at a host communities sensitisation workshop, attributed the low oil production to a number of issues, including the energy transition’s impact on hydrocarbon funding, a lack of investments, and insecurity. “While the commission is prioritising efforts towards increasing oil and gas production and ensuring maximum federation revenue through the optimisation of the oil and gas value chain, the efforts have been constrained by a myriad of challenges. “These challenges range from insecurity, low investment, and de-prioritisation of funding of hydrocarbon development arising from the energy transition. “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” he said.