Business
NNPCL TURNING A NEW LEAF* *_By:_* *Emmanuel Onwubiko
*NNPCL TURNING A NEW LEAF*
*_By:_* *Emmanuel Onwubiko
Camillus Eboh is one of the most experienced Nigerian journalists still practicing after over two decades since he began at The Guardian newspaper of Nigeria which is the indisputable flagship of newspapering in Nigeria. This gentleman now works for a foreign news agency known as Reuters.
Last May, Camilus Eboh did a report on the Nigerian National Petroleum Company Limited whereby he disclosed that Nigeria spent more than 11.35 trillion naira ($25 billion) on fixing the country’s three moribund refineries in the past 10 years, the Ninth session of the National parliament said in a report, calling for a forensic audit of the matter.
Despite the huge amounts spent to rehabilitate the refineries, Reuters reported that they were producing at less than 30% capacity, the lower house of parliament said late on Tuesday. This has kept the country reliant on fuel imports, which it subsidies to keep prices low.
The report came as state oil firm NNPC Ltd on Wednesday hiked petrol prices to as high as 557 naira ($1.21) per litre, from 189 naira, days after new President Bola Tinubu said fuel subsidies would be scrapped.
Tinubu has inherited a myriad of problems, including low economic growth, high public debts, double-digit inflation and militant activity.
The lawmakers in the immediate past dispensation transmitted their recommendation to new members and government.
The foreign news agency further observed that NNPC has been working to revamp the refineries, which were shut down entirely in 2021 and produced little or no fuel over the past decade. The management of the NNPCL said it has begun far reaching reforms to make the company a successful and profitable business rather than the persistent bad name it had garnered in the past before its transformation to the present entity known as the NNPCL.
Empirical evidence seem to show that the management has indeed begun the moves to achieve the stated objective of turning the NNPCL around into a transparently governed entity and a profitable company at that.
The recent release of the 2023 Audited Financial Statement (AFS) by the Nigerian National Petroleum Company Limited (NNPCL), which declared a net profit of N3.3 trillion, is not just a financial milestone—it is a testament to a seismic shift in corporate governance, transparency, and accountability within Nigeria’s petroleum industry. The transformation from the old Nigerian National Petroleum Corporation (NNPC) to NNPCL, under the strategic leadership of Group Managing Director Mele Kyari, marks a new era for the organization. This new era signals a decisive departure from the opaque and inefficient practices that once plagued the former NNPC.
To appreciate the significance of NNPCL’s current achievements, reflecting on the dark days of the old NNPC is essential. For decades, the NNPC was synonymous with corruption, inefficiency, and a lack of accountability. Despite its vast resources and strategic importance to Nigeria’s economy, the corporation was notorious for its inability to operate transparently. When they were released, financial statements were often incomplete or unreliable, and the public had little to no insight into the corporation’s inner workings. This lack of transparency bred corruption, mismanagement, and a loss of public trust.
The NNPC’s operations were shrouded in secrecy, with no clear accountability to the Nigerian people. The absence of credible financial reporting allowed corrupt practices to fester unchecked. Revenue leakages, questionable contracts, and unaccounted oil sales became the norm, leading to massive losses for the Nigerian economy. The corporation posted losses yearly, with no clear strategy for turning the tide. By 2018, the NNPC had recorded a staggering loss of N803 billion, underscoring the depth of its financial crisis.
This culture of opacity extended beyond financial reporting. The NNPC’s dealings were often conducted behind closed doors, with little regard for due process. The corporation’s failure to engage with stakeholders, including the Nigerian public, further eroded its credibility. For many Nigerians, the NNPC became a symbol of the worst excesses of public sector corruption and mismanagement.
The transition from the old NNPC to the NNPCL, facilitated by the Petroleum Industry Act (PIA) 2021, has been nothing short of revolutionary. The PIA provided the legal framework for the transformation of the NNPC into a commercially oriented and profit-driven entity, with clear mandates for transparency, accountability, and efficiency. This transition was not merely a change in nomenclature; it represented a fundamental shift in the corporation’s operational philosophy and governance structure.
One of the most significant changes introduced by the PIA was the requirement for NNPCL to publish its audited financial statements annually. This provision has been a game-changer, compelling the corporation to adopt global best practices in financial reporting. For the first time in its history, NNPCL began to operate with the level of transparency expected of a publicly traded company. The regular release of its financial statements has not only enhanced public trust but also provided critical insights into the corporation’s financial health and performance.
The leadership of Mele Kyari, who assumed office as Group Managing Director in 2019, has been instrumental in driving these reforms. Kyari brought a clear vision for transforming NNPCL into a world-class energy company, focused on profitability, efficiency, and accountability. Under his stewardship, NNPCL has implemented far-reaching reforms aimed at enhancing operational efficiency, reducing costs, and maximizing revenue. The results have been nothing short of remarkable.
NNPCL’s 2023 financial performance is a testament to the success of these reforms. The corporation posted a net profit of N3.3 trillion, representing a 28% increase over the previous year’s profit of N2.5 trillion. This impressive financial performance marks the highest profit ever recorded by the corporation since its inception 46 years ago. Such a turnaround would have been unthinkable in the days of the old NNPC, where losses were the norm, and profitability seemed out of reach.
The increase in profit is particularly noteworthy given the challenging operational and economic environment in which NNPCL operates. Despite these challenges, the corporation has managed to enhance its productivity, optimize its resources, and deliver value to its shareholders. The declaration of a final dividend of N2.1 trillion, approved by the shareholders, is further evidence of NNPCL’s commitment to delivering tangible benefits to its stakeholders.
Central to NNPCL’s success has been the strategic leadership of Mele Kyari and the NNPCL Board, chaired by Chief Pius Akinyelure. The Board’s commitment to good corporate governance, transparency, and accountability has been critical in securing shareholder confidence and driving the corporation’s financial performance. Under Kyari’s leadership, NNPCL has adopted a proactive approach to governance, with a focus on institutionalizing transparency across all levels of the organization.
This commitment to transparency is evident in the corporation’s approach to financial reporting. NNPCL’s financial statements are now prepared in accordance with International Financial Reporting Standards (IFRS), ensuring that they meet global standards of accuracy and completeness. This level of transparency is unprecedented in the history of the corporation and has been instrumental in restoring public trust.
Moreover, NNPCL has taken significant steps to enhance its operational efficiency. The corporation has implemented cost-cutting measures, streamlined its operations, and invested in technology to improve its processes. These efforts have not only reduced operational costs but have also improved the corporation’s overall productivity. The result has been a more agile, responsive, and profitable organization.
While the progress made by NNPCL is commendable, it is essential to recognize that the journey toward sustained transparency and accountability is ongoing. The corporation must remain vigilant against any attempts to revert to the practices of the past that nearly destroyed the NNPC. The dark days of corruption, inefficiency, and mismanagement must never be allowed to return.
The history of the old NNPC serves as a stark reminder of the dangers of complacency. The culture of secrecy that once pervaded the corporation created an environment where corruption could thrive. Financial leakages, dubious contracts, and unaccounted revenues were the order of the day, with little to no accountability. This culture not only undermined the corporation’s financial performance but also eroded public trust in its ability to manage Nigeria’s vast petroleum resources effectively.
To avoid repeating these mistakes, NNPCL must continue to strengthen its capacity for transparency and accountability. The corporation must institutionalize the reforms it has implemented, ensuring that they become deeply embedded in its operational culture. This includes maintaining the highest standards of financial reporting, adhering to global best practices, and engaging openly with stakeholders.
One of the key challenges facing NNPCL as it moves forward is ensuring that its commitment to transparency and accountability becomes a permanent feature of its operations, rather than just a temporary shift. To achieve this, NNPCL must continue to invest in its governance structures, processes, and human capital.
The corporation should focus on continuously improving its financial reporting processes to ensure that its statements are accurate, complete, and timely. This will require ongoing investment in technology and training to enhance the capacity of its finance and accounting teams. By maintaining high standards of financial reporting, NNPCL can ensure that its operations remain transparent and accountable.
Good corporate governance is the foundation of transparency and accountability. NNPCL should consistently uphold the principles of good governance, including integrity, fairness, and accountability. This requires the active engagement of the Board and management in setting the corporation’s strategic direction, monitoring performance, and ensuring that all decisions are made in the best interests of the shareholders and the Nigerian people.
Institutionalizing transparency across all levels of the organization is also essential. This involves adopting open and transparent procurement processes, ensuring that contracts are awarded based on merit, and preventing conflicts of interest. By embedding transparency in its operations, NNPCL can reduce the risk of corruption and enhance its reputation as a trustworthy and accountable organization.
The commitment to transparency must also extend beyond internal operations to include active engagement with external stakeholders. This includes regular communication with the public, investors, regulators, and other stakeholders about the corporation’s activities, performance, and plans. By fostering open dialogue, NNPCL can build trust and ensure that its operations align with the expectations of its stakeholders.
Finally, NNPCL must promote a culture of integrity within the organization. This requires a clear commitment from the leadership to uphold ethical standards and hold individuals accountable for their actions. By fostering a culture of integrity, NNPCL can ensure that its employees are committed to doing what is right, even in the face of challenges.
The transformation of NNPC into NNPCL represents a significant achievement for Nigeria’s petroleum industry. However, the journey is far from over. NNPCL must continue to build on its successes, deepen its reforms, and remain committed to transparency, accountability, and efficiency. The corporation’s ability to sustain its profitability, achieve its production targets, and deliver value to its stakeholders will depend on its commitment to these principles.
As NNPCL looks to the future, it must remain focused on its mission of securing Nigeria’s energy future while contributing to the nation’s economic development. The corporation’s ability to achieve these goals will require continued strategic leadership, sound corporate governance, and a relentless commitment to transparency and accountability.
*Emmanuel Onwubiko* _is the Head of HUMAN RIGHTS WRITERS ASSOCIATION OF NIGERIA and was NATIONAL COMMISSIONER OF THE NATIONAL HUMAN RIGHTS COMMISSION OF NIGERIA._
BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025
By femi Oyewale
Business
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
In celebration of the season of love, Adron Homes and Properties has announced the launch of its special Valentine campaign, “Love for Love” Promo, a customer-centric initiative designed to reward Nigerians who choose to express love through smart, lasting real estate investments.
The Love for Love Promo offers clients attractive discounts, flexible payment options, and an array of exclusive gift items, reinforcing Adron Homes’ commitment to making property ownership both rewarding and accessible. The campaign runs throughout the Valentine season and applies to the company’s wide portfolio of estates and housing projects strategically located across Nigeria.
Speaking on the promo, the company’s Managing Director, Mrs Adenike Ajobo, stated that the initiative is aimed at encouraging individuals and families to move beyond conventional Valentine gifts by investing in assets that secure their future. According to the company, love is best demonstrated through stability, legacy, and long-term value—principles that real estate ownership represents.
Under the promo structure, clients who make a payment of ₦100,000 receive cake, chocolates, and a bottle of wine, while those who pay ₦200,000 are rewarded with a Love Hamper. Payments of ₦500,000 attract a Love Hamper plus cake, and clients who pay ₦1,000,000 enjoy a choice of a Samsung phone or a Love Hamper with cake.
The rewards become increasingly premium as commitment grows. Clients who pay ₦5,000,000 receive either an iPad or an all-expenses-paid romantic getaway for a couple at one of Nigeria’s finest hotels, which includes two nights’ accommodation, special treats, and a Love Hamper. A payment of ₦10,000,000 comes with a choice of a Samsung Z Fold 7, three nights at a top-tier resort in Nigeria, or a full solar power installation.
For high-value investors, the Love for Love Promo delivers exceptional lifestyle experiences. Clients who pay ₦30,000,000 on land are rewarded with a three-night couple’s trip to Doha, Qatar, or South Africa, while purchasers of any Adron Homes house valued at ₦50,000,000 receive a double-door refrigerator.
The promo covers Adron Homes’ estates located in Lagos, Shimawa, Sagamu, Atan–Ota, Papalanto, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger States, offering clients the opportunity to invest in fast-growing, strategically positioned communities nationwide.
Adron Homes reiterated that beyond the incentives, the campaign underscores the company’s strong reputation for secure land titles, affordable pricing, strategic locations, and a proven legacy in real estate development.
As Valentine’s Day approaches, Adron Homes encourages Nigerians at home and in the diaspora to take advantage of the Love for Love Promo to enjoy exceptional value, exclusive rewards, and the opportunity to build a future rooted in love, security, and prosperity.
*Why Nigeria’s Banks Still on Shaky Ground with Big Profits, Weak Capital*
*BY BLAISE UDUNZE*
Despite the fragile 2024 economy grappling with inflation, currency volatility, and weak growth, Nigeria’s banking industry was widely portrayed as successful and strong amid triumphal headlines. The figures appeared to signal strength, resilience, and superior management as the Tier-1 banks such as Access Bank, Zenith Bank, GTBank, UBA, and First Bank of Nigeria, collectively reported profits approaching, and in some cases exceeding, N1 trillion. Surprisingly, a year later, these same banks touted as sound and solid are locked in a frenetic race to the capital markets, issuing rights offers and public placements back-to-back to meet the Central Bank of Nigeria’s N500 billion recapitalisation thresholds.
The contradiction is glaring. If Nigeria’s biggest banks are so profitable, why are they unable to internally fund their new capital requirements? Why have no fewer than 27 banks tapped the capital market in quick succession despite repeated assurances of balance-sheet robustness? And more fundamentally, what do these record profits actually say about the real health of the banking system?
The recapitalisation directive announced by the CBN in 2024 was ambitious by design. Banks with international licences were required to raise minimum capital to N500 billion by March 2026, while national and regional banks faced lower but still substantial thresholds ranging from N200 billion to N50 billion, respectively. Looking at the policy, it was sold as a modern reform meant to make banks stronger, more resilient in tough times, and better able to support major long-term economic development. In theory, strong banks should welcome such reforms. In practice, the scramble that followed has exposed uncomfortable truths about the structure of bank profitability in Nigeria.
At the heart of the inconsistency is a fundamental misunderstanding often encouraged by the banks themselves between profits and capital. Unknown to many, profitability, no matter how impressive, does not automatically translate into regulatory capital. Primarily, the CBN’s recapitalisation framework actually focuses on money paid in by shareholders when buying shares, fresh equity injected by investors over retained earnings or profits that exist mainly on paper.
This distinction matters because much of the profit surge recorded in 2024 and early 2025 was neither cash-generative nor sustainably repeatable. A significant portion of those headline banks’ profits reported actually came from foreign exchange revaluation gains following the sharp fall of the naira after exchange-rate unification. The industry witnessed that banks’ holding dollar-denominated assets their books showed bigger numbers as their balance sheets swell in naira terms, creating enormous paper profits without a corresponding improvement in underlying operational strength. These gains inflated income statements but did little to strengthen core capital, especially after the CBN barred banks from using FX revaluation gains for dividends or routine operations. In effect, banks looked richer without becoming stronger.
Beyond FX effects, Nigerian banks have increasingly relied on non-interest income fees, charges, and transaction levies to drive profitability. While this model is lucrative, it does not necessarily deepen financial intermediation or expand productive lending. High profits built on customer charges rather than loan growth offer limited support for long-term balance-sheet expansion. They also leave banks vulnerable when macroeconomic conditions shift, as is now happening.
Indeed, the recapitalisation exercise coincides with a turning point in the monetary cycle. The extraordinary conditions that supported bank earnings in 2024 and 2025 are beginning to unwind. Analysts now warn that Nigerian banks are approaching earnings reset, as net interest margins the backbone of traditional banking profitability, come under sustained pressure.
Renaissance Capital, in a January note, projects that major banks including Zenith, GTCO, Access Holdings, and UBA will struggle to deliver earnings growth in 2026 comparable to recent performance.
In a real sense, the CBN is expected to lower interest rates by 400 to 500 basis points because inflation is slowing down, and this means that banks will earn less on loans and government bonds, but they may not be able to quickly lower the interest they pay on deposits or other debts. The cash reserve requirements are still elevated, which does not earn interest; banks can’t easily increase or expand lending investments to make up for lower returns. The implications are significant. Net interest margin, the difference between what banks earn on loans and investments and what they pay on deposits, is poised to contract. Deposit competition is intensifying as lenders fight to shore up liquidity ahead of recapitalisation deadlines, pushing up funding costs. At the same time, yields on treasury bills and bonds, long a safe and lucrative haven for banks are expected to soften in a lower-rate environment. The result is a narrowing profit cushion just as banks are being asked to carry far larger equity bases.
Compounding this challenge is the fading of FX revaluation windfalls. With the naira relatively more stable in early 2026, the non-cash gains that once flattered bank earnings have largely evaporated. What remains is the less glamorous reality of core banking operations: credit risk management, cost efficiency, and genuine loan growth in a sluggish economy. In this new environment, maintaining headline profits will be far harder, even before accounting for the dilutive impact of recapitalisation.
That dilution is another underappreciated consequence of the capital rush. Massive share issuances mean that even if banks manage to sustain absolute profit levels, earnings per share and return on equity are likely to decline. Zenith, Access, UBA, and others are dramatically increasing their share counts. The same earnings pie is now being divided among many more shareholders, making individual returns leaner than during the pre-recapitalisation boom. For investors, the optics of strong profits may soon give way to the reality of weaker per-share performance.
Yet banks have pressed ahead, not only out of regulatory necessity but also strategic calculation.
During this period of recapitalization, investors are interested in the stock market with optimism, especially about bank shares, as banks are raising fresh capital, and this makes it easier to attract investments. This has become a season for the management teams to seize the moment to raise funds at relatively attractive valuations, strengthen ownership positions, and position themselves for post-recapitalisation dominance. In several cases, major shareholders and insiders have increased their stakes, as projected in the media, signalling confidence in long-term prospects even as near-term returns face pressure.
There is also a broader structural ambition at play. Well-capitalised banks can take on larger single obligor exposures, finance infrastructure projects, expand regionally, and compete more credibly with pan-African and global peers. From this perspective, recapitalisation is not merely about compliance but about reshaping the competitive hierarchy of Nigerian banking. What will be witnessed in the industry is that those who succeed will emerge larger, fewer, and more powerful. Those that fail will be forced into consolidation, retreat, or irrelevance.
For the wider economy, the outcome is ambiguous. Stronger banks with deeper capital buffers could improve systemic stability and enhance Nigeria’s ability to fund long-term development. The point is that while merging or consolidating banks may make them safer, it can also harm the market and the economy because it will reduce competition, let a few banks dominate, and encourage them to earn easy money from bonds and fees instead of funding real businesses. The truth be told, injecting more capital into the banks without complementary reforms in credit infrastructure, risk-sharing mechanisms, and fiscal discipline, isn’t enough as the aforementioned reforms are also needed.
The rush as exposed in this period, is that the moment Nigerian banks started raising new capital, the glaring reality behind their reported profits became clearer, that profits weren’t purely from good management, while the financial industry is not as sound and strong as its headline figures. The fact that trillion-naira profit banks must return repeatedly to shareholders for fresh capital is not a sign of excess strength, but of structural imbalance.
With the deadline for banks to raise new capital coming soon, by 31 March 2026, the focus has shifted from just raising N500 billion. N200 billion or N50 billion to think about the future shape and quality of Nigeria’s financial industry, or what it will actually look like afterward. Will recapitalisation mark a turning point toward deeper intermediation, lower dependence on speculative gains, and stronger support for economic growth? Or will it simply reset the numbers while leaving underlying incentives unchanged?
The answer will define the next chapter of Nigerian banking long after the capital market roadshows have ended and the profit headlines have faded.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
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