PIA: Tinubu moves to transfer concessionaire powers from NNPCL to NUPRC in major shakeup

The New Diplomat
Writer
Subsidy Removal: NNPC Ends Crude Swap Contracts with Foreign Refiners

Ad

Sanae Takaichi Shatters Glass Ceiling, Becomes Japan’s First Female Prime Minister

By Abiola Olawale ​Sanae Takaichi officially made history on Tuesday, October 21, 2025, by being elected as Japan's first female prime minister following a parliamentary vote. Takaichi, an ultraconservative leader of the Liberal Democratic Party (LDP) secured the top post after a coalition deal with the right-wing Japan Innovation Party (Ishin no Kai). The 64-year-old…

PDP To Know Fate on Oct 31 as Court Delivers Judgment on National Convention

By Abiola Olawale The political landscape of Nigeria's main opposition party, the Peoples Democratic Party (PDP), remains suspended in uncertainty as the Federal High Court in Abuja has set October 31 as the date for judgment in the contentious suit challenging the party’s planned national convention. ​The high-stakes ruling, which follows the conclusion of legal…

Brent Flirts With $60 as Oversupply Fears Deepen

Oil prices continued to inch lower in early Tuesday trading as concerns about oversupply and sagging demand resumed their grip on the market, even as trade-talks between the United States and China offered a glimmer of optimism. At the time of writing, WTI was down 0.52% at $57.22, while Brent had fallen 0.54% to $60.61.…

Ad

…MOFI to take control of NNPCL shares

By Obinna Uballa

Nigeria’s oil and gas industry is set for another major shake-up as President Bola Tinubu has reportedly approved sweeping proposed amendments to the Petroleum Industry Act (PIA) 2021, transferring ownership and concessionaire powers away from the Nigerian National Petroleum Company Limited (NNPCL).

In a notice to key federal agencies, the Attorney-General of the Federation confirmed that the proposed amendments, prepared by the Minister of Finance, are aimed at curbing “escalating fiscal leakage and revenue loss confronting the Federation,” a report by Oil+Gas Report noted.

The proposed legislation, titled the Petroleum Industry Act (Amendment) Act 2025, introduces fundamental changes to the governance and commercial structure of Nigeria’s oil sector, the report said.

The most consequential provision is the proposed overhaul of Section 8 of the PIA. If passed, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will:

Act as government representative in all model contracts under Section 85; Replace NNPCL as the concessionaire in all existing Production Sharing Contracts, Profit Sharing Contracts and Risk Service Contracts; Evaluate and approve work programmes, and verify contractor costs to determine cost-recoverable expenditure.

This, according to analysts, effectively removes NNPCL’s long-held concessionaire role, shifting it entirely to the regulator.

The suggested amendment also targets NNPCL’s ownership structure. Section 53 is likely to be revised to vest all shares of NNPCL solely in the Ministry of Finance Incorporated (MOFI). This outs the Ministry of Petroleum Incorporated (MOPI) as co-shareholder, making MOFI the “sole bare agent of the Federation.”

Critics argue that the move centralises ownership too tightly in the finance ministry, creating potential governance and accountability risks.

The bill reverses an earlier Tinubu era settlement between the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on joint integrated operations.

The current law empowers NUPRC to regulate upstream, midstream integrated facilities. The amendment instead proposes a joint NUPRC, NMDPRA project team to oversee such operations.

The proposed changes have already sparked concern over the future of NNPCL as a commercially independent entity, reports said.

By proposing to transfer strategic direction framework from the NNPCL board to MOFI, analysts warn that the corporation risks becoming an extension of political and fiscal priorities, rather than a commercially driven player in the global energy market.

Ad

X whatsapp