By Obinna Uballa
The Presidency has hinted at a possible restructuring of the Nigerian National Petroleum Company Limited (NNPC) as the government confronts declining oil production and weak operational performance in the upstream sector.
Speaking at the Nigerian Association of Petroleum Explorationists (NAPE) Conference in Lagos on Monday, Special Adviser to the President on Energy, Olu Verheijen, said Nigeria cannot attain its production target of three million barrels per day unless asset ownership and operational responsibilities are reassessed.
Verheijen noted that NNPC Exploration and Production Limited (NEPL) currently produces about 220,000 barrels per day – less than a tenth of national output – and questioned whether the state-owned company has the financial capability or technical depth to drive new drilling campaigns.
“Unlike the era of international oil companies, joint venture partners can no longer carry NNPC,” she said. “We must ask the hard question: can the NNPC deliver the growth we need on its own balance sheet? If not, then we must restructure asset ownership and bring in operators who can.”
She stressed that the government’s approach would be founded on performance, not sentiment, adding that Nigeria’s independent producers – such as Seplat, Oando, Renaissance, Aiteo and others – must move from incremental well interventions to large-scale field developments capable of materially lifting output.
Verheijen outlined a reform pathway anchored on “reserves, revenues, reliability and responsibility,” emphasising that the administration has already unlocked more than $8bn in final investment decisions in the past 18 months, with a projected $20bn pipeline still ahead.
She said the government’s energy policy goes beyond crude exports, pointing to gas commercialisation for power generation, industrial feedstock, LPG and CNG adoption, and rehabilitation of refineries to end dependence on imported fuel.
Responding, NNPC Chairman Ahmadu Kida said the company is undergoing strategic transformation to become Africa’s leading energy firm within five years. He pledged a renewed culture of collaboration and transparency.
“When Nigerians hear NNPC, we want it to evoke pride,” he said.
