Every nation is endowed by God with natural and human resources critical for its growth, and Nigeria is no exception. Blessed with arable land, abundant minerals, oil and gas, and a vibrant population, our nation holds immense potential. Among these, the oil and gas sector plays a pivotal role in our economy, yet it has long struggled to fulfill its promise.
The discovery of oil in Oloibiri in 1956 marked a turning point in Nigeria’s history, coinciding with our journey toward independence. In 1965, the establishment of our first refinery with a capacity of 60,000 barrels per day signaled our ambition to process crude oil locally. However, the civil war from 1967 to 1970 shifted focus away from development toward survival.
Post-war, the petrodollar revolution of 1973 and the commissioning of a second refinery in 1978 (125,000 barrels per day) reignited hopes for an era of economic self-reliance. Unfortunately, the Nigerian National Petroleum Corporation (NNPC) soon faced challenges, plagued by corruption, inefficiency, and a lack of transparency. The steady decline in refinery operability eroded public trust, while political interference further stifled progress.
The transition to the Nigerian National Petroleum Corporation Limited (NNPCL) has marked a new era of transformation. Recent reforms, including appointing a new board led by Mr. Bashir Bayo Ojulari, signal strategic intent to balance regional representation with private-sector expertise. The focus now is on enhancing efficiency, transparency, and profitability.
Looking ahead, NNPCL’s restructuring could mirror the success of the Nigeria Liquefied Natural Gas (NLNG) company. By adopting a private-sector model and listing NNPCL on both local and international stock exchanges, to attract substantial investment. This would foster stronger partnerships with International and Local Oil Companies, remove the need for government budgetary allocations, and establish NNPCL as a net contributor to government finances.
This shift would not only invigorate the energy sector but also create much-needed jobs for our youth, stimulate the value chain, and support Nigeria’s journey to sustained prosperity. The road ahead, though challenging, holds great promise with the right strategic focus.