NNPC's Crusade: Battling systemic corruption to rescue Nigeria’s oil industry

President Bola Ahmed Tinubu's recent restructuring of the NNPC Limited board and leadership is more than just a routine organizational change—it represents a critical step towards safeguarding Nigeria’s key public entity from pervasive corruption and internal control. This decision was driven by the urgent need following the problematic tenure of the Mele Kyari-managed administration, during which NNPC suffered significant setbacks in transparency, fiscal responsibility, and performance efficiency, even with the progressive reforms introduced through the Petroleum Industry Act (PIA) 2021.

During Kyari's tenure, NNPC Limited fell short of meeting fundamental benchmarks for corporate governance and transparency typical of a commercially driven national petroleum firm. Annually, substantial sums from crude oil earnings went unreported, were inaccurately reported, or were improperly utilized through unclear processes. The purported fuel subsidy program, with NNPC acting as the main administrator, turned into a financial black hole—marked by significant exaggerations, absent validation systems, and claims of fabricated quantities along with instances of capital circling back. Simultaneously, crucial investment choices languished, production levels dropped in the exploration sector, and Nigeria found itself incapable of fully benefiting from elevated global oil costs because of poor management and resource seepage.

The transformation of NNPC into a limited liability company was meant to usher in an age of greater financial responsibility and transparency. However, during Kyari’s term, these intentions were overshadowed as outdated practices persisted under their corporate facade. By refusing to release audited reports, neglecting meaningful communication with stakeholders—the Nigerian populace—and citing spurious reasons like national security or market sensitivities for avoiding necessary restructuring, they eroded trust among investors. This led to reduced investment flows into the industry, ultimately stalling progress within Nigeria’s oil and gas supply chain.

At this crucial moment—when Nigeria needs to strengthen its financial position, speed up the commercialization of gas, draw investment, and keep pace with worldwide shifts toward cleaner energy—the NNPC should not remain a burden on public funds or an entity lacking transparency. With the newly appointed board and leadership selected based on their technical skills, moral integrity, and geographical representation, they carry a fresh directive: to reform internally, restore confidence, and transform NNPC into a genuinely outcome-focused national petroleum firm.

This instant signals the start of an overdue transformation—from focusing on rent-seeking activities to fostering value creation, from maintaining secrecy to embracing transparency, and from allowing institutional stagnation to driving strategic renewal. This pivotal change is crucial for NNPC and, consequently, for Nigeria’s economic prospects.

Mohammed works as a financial and public relations analyst.

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