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Oil and gas experts have asked the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Ltd. (NNPCL), Mr. Bayo Ojulari, to adhere to the rule of law and the Petroleum Industry Act (PIA) 2021.
They said these were key to enhancing transparency, accountability, and investor confidence in the sector.
Ojulari was appointed by President Bola Tinubu on April 2, 2025.
Speaking in separate interviews on Monday, April 21 in Lagos, the experts congratulated Ojulari while highlighting critical areas the new leadership must address.
Professor Emeritus of Petroleum Economics, Louisiana State University, Prof. Wumi Iledare, emphasised the non-negotiable need for legal compliance, warning that failure to uphold the provisions of the PIA could discourage investment.
“Rule of law compliance is essential for accountability. Deviating from this path will deter capital inflows into the NNPCL,” Iledare said.
He urged the company to focus on upstream cost efficiency, especially in joint venture (JV) brownfield projects, while also securing its operational assets.
He advised against “gold-plating” of projects and called for more value extraction from midstream and downstream operations.
“NNPCL is now a vertically integrated commercial entity, not a government agency.
Long-term value lies in leveraging downstream and midstream infrastructure,” he added.
Iledare also warned against treating NNPCL as a government cash cow, urging the Federal Government to avoid imposing subsidies on the company.
He advocated compensation models that reflect the distinct financial realities of each operational segment and suggested selling JV interests to local consortia rather than foreign entities.
On energy transition, Iledare said that NNPCL should focus on reducing emissions while maintaining fossil fuels as its core business.
“Petroleum will remain a key energy source well into the future unless a viable, sustainable alternative becomes widely accessible,” he noted.
Oil and gas consultant, Mr. Henry Adigun, expressed same views, urging Ojulari to prioritise shareholder returns, review asset performance and address operational inefficiencies.
“NNPCL must operate strictly as an oil company and not blur the lines with regulatory responsibilities. Its inability to make that distinction has affected its efficiency,” Adigun said.
He noted that while NNPCL could facilitate sectoral growth, it cannot independently attract significant investment without leveraging its existing assets and joint ventures.
On energy transition, Adigun called for proper internal structures to drive the implementation of policy goals, adding that leadership reform at NNPCL could trigger broader industry improvements.
“NNPCL’s reform can set a positive tone for the entire oil and gas sector,” he said.
By Yusuf Yunus
