Presidency Plans NNPC Restructuring Amid Declining Oil Production

The Presidency is set to restructure asset ownership within the Nigerian National Petroleum Company Limited (NNPC) amid concerns over the company’s declining oil output.
This was disclosed by the Special Adviser to the President on Energy, Olu Verheijen, on Monday at the ongoing Nigerian Association of Petroleum Explorationists (NAPE) Conference in Lagos.
Verheijen presented a comprehensive plan to revitalise Nigeria’s oil and gas industry while promoting energy security and sustainable growth. She noted that achieving the target of producing three million barrels of oil per day will require performance-based management and questioned NNPC’s capacity to deliver significant output growth.
According to her, NNPC Exploration and Production Limited currently produces only about 220,000 barrels daily — less than 10 per cent of Nigeria’s total production. She expressed concern over the firm’s ability to finance and execute major drilling campaigns, pointing out that unlike the era when international oil companies operated onshore, joint venture partners can no longer shoulder NNPC’s financial burden.
Verheijen emphasised the need for courage to restructure asset ownership and bring in operators with proven technical expertise, financial strength, and strong governance practices. She stated that meaningful progress requires performance-based leadership, not sentiment.
Highlighting what she called the “four R’s” framework — reserves, revenues, reliability, and responsibility — Verheijen explained that Nigeria must rebuild investor confidence by ensuring transparency and competitiveness. She noted that since 2023, under President Bola Tinubu’s leadership, efforts have been made to restore clarity in the sector and attract investments.
She urged Nigeria to move quickly to secure exploration and production investments, stressing that global competition for capital is intense. Verheijen added that the Tinubu administration has already unlocked over $8 billion in final investment decisions through projects such as Ubeta, Bonga North, and HI, with another $20 billion in view.
She further stated that the government’s revenue strategy goes beyond exports, focusing also on domestic value creation through gas-to-power projects, LPG and CNG expansion, petrochemicals, fertiliser production, and refining to reduce fuel imports.
Meanwhile, the Chairman of NNPC Limited, Ahmadu Kida, said the company’s goal is to become Africa’s leading energy brand within five years. He noted that the NNPC aims to earn the trust and pride of Nigerians, symbolising national strength and achievement.