…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.
