The Presidency has hinted at a potential restructuring of the Nigerian National Petroleum Company Limited (NNPC Ltd.) amid mounting concerns over its dwindling oil production levels and the country’s struggle to meet output targets.
This was disclosed by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, during the Nigerian Association of Petroleum Explorationists (NAPE) Conference held on Monday in Lagos.
Verheijen, who outlined a new roadmap to revitalise Nigeria’s oil and gas sector, emphasised that the government’s three-million-barrel-per-day production target can only be achieved through performance-based reforms, not institutional sentiment.
NNPC’s Output Under Scrutiny
The presidential aide raised concerns about the company’s performance, revealing that NNPC Exploration and Production Limited (NEPL) currently produces only 220,000 barrels per day, representing less than 10 per cent of the nation’s total output.
She questioned the NNPC’s financial and operational capacity to independently undertake the drilling campaigns required to significantly raise production levels.
“Unlike the era when international oil companies carried the NNPC in joint ventures, today’s environment requires that we ask the hard questions,” Verheijen said. “Can NNPC deliver the growth we need on its own balance sheet? If not, we must have the courage to restructure asset ownership and invite credible operators with the technical expertise, financial strength, and governance discipline to move the sector forward.”
According to her, revitalising the national oil company demands more than patriotic sentiment — it requires “performance-based stewardship” and strategic reforms that prioritise efficiency over bureaucracy.
A Framework for Sector Renewal
Verheijen presented a reform framework she termed the “Four Rs” — Reserves, Revenues, Reliability, and Responsibility, which she described as the pillars for sustainable energy growth in Nigeria.
On reserves, she noted that exploration must go beyond policy rhetoric, urging Nigeria to act decisively to attract fresh capital.
“Exploration is not a PowerPoint presentation — it is a high-risk venture, but risk has a price, and clarity is the discount. Since 2023, under President Tinubu’s leadership, Nigeria has worked to restore that clarity,” she said.
She cautioned that Nigeria must accelerate reforms to remain competitive in the global energy space. “Investors today are spoiled for choice. They will put their money where returns are clear, stable, and predictable,” she added.
Unlocking $8 Billion in Energy Investments
Highlighting the administration’s early achievements, Verheijen disclosed that in just 18 months, the government has unlocked over $8 billion in final investment decisions (FIDs) through projects such as Ubeta, Bonga North, and HI, with a clear line of sight to an additional $20 billion.
“These aren’t just signed papers — they represent shovels already in the ground,” she noted. “We are commercialising gas through long-term supply agreements, driving LNG expansion, and boosting gas-to-power and industrial utilisation to turn stranded resources into bankable assets.”
Verheijen said the government’s revenue agenda now extends beyond exports to domestic value creation, including expanding LPG and CNG adoption, boosting petrochemical and fertiliser production, and advancing local refining capacity to end fuel importation and strengthen regional energy security.
The presidential aide urged indigenous companies — such as Renaissance, Oando, Seplat, and Aiteo — to transition from small-scale operations to large-scale greenfield developments, citing landmark projects by Shell and ExxonMobil as models that “truly move the needle.”
“Independence must not mean inertia,” she said. “Our journey to three million barrels a day depends on local operators rising to the challenge of bold, technically sound, and capital-intensive exploration.”
Responding to the remarks, Chairman of NNPC Limited, Ahmadu Kida, reaffirmed the company’s commitment to transformation and collaboration.
“At NNPC Limited, we aim to be a company every Nigerian is proud of — a symbol of national achievement,” Kida said. “In the next five years, we envision NNPC as Africa’s undisputed energy champion, one that embodies excellence, innovation, and the spirit of national pride.”
He added that the company’s motto remains collaboration and inclusivity, with a focus on building strong partnerships to position NNPC as the continent’s energy company of choice.
