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._
GTCO Launches “Take on Squad” Hackathon 3.0, Opens Call for Applications
Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has announced the launch of “Take on Squad” Hackathon 3.0, reaffirming its commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.
Now in its third edition, the Hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors including financial services, healthcare, commerce and digital inclusion. Under the theme “Smart Systems: The Intelligent Economy,” participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.
Applications are now open, and interested teams can find full guidelines and registration details on the official portal at https://squadco.com/hackathon.
Speaking on the initiative, Eduophon Japhet, Managing Director of HabariPay, stated: “Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve. Through “Take on Squad” Hackathon, we are deliberately investing in the ideas and talent that will define the future. Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact. This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress.”
The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.
Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.
About HabariPay
HabariPay Ltd is the fintech subsidiary of Guaranty Trust Holding Company Plc (GTCO), one of the largest financial services institutions in Africa with direct and indirect investments in a network of operating entities located in 10 countries across Africa and the United Kingdom.
Licensed by the Central Bank of Nigeria (CBN), our goal is to support SMEs, micro merchants, large corporations and other fintechs (Tech Stars) with the tools they need to thrive in an evolving digital economy and expand beyond their current market reach. HabariPay’s solutions include Squad, a full-scale digital payments toolkit to make in-person and online payments simpler, HabariPay Storefront, an e-commerce website to facilitate online purchases, Value-Added Services to help merchants access cost-effective and flexible airtime and data bundles to run their businesses, as well as a switching infrastructure that enables tech-focused businesses to optimise cost and make transactions more efficient.
HabariPay’s contributions to Accelerating Digital Acceptance in Africa have not gone unnoticed–it received Mastercard’s Innovative Mobile Payment Solution Award at TIA 2022 for its innovative payment solution, SquadPOS.
About Squad
Squad is a complete digital payments solution that is reliable, secure, and affordable, making receiving in-person and online payments simpler and convenient.
Thousands of merchants currently leverage Squad’s payment solutions for their daily business operations. Squad’s current products and service offerings include SquadPOS, Squad Payment Links, Squad Virtual Accounts, USSD, and E-Commerce Storefront.
Find out more at www.squadco.com.
Electric 8-Seater Tula Moto Keke Enters Nigerian Market, Targets Higher Operator Earnings
LAGOS — A new electric-powered tricycle with an expanded passenger capacity has been introduced into Nigeria’s urban transport sector, offering operators a potentially more profitable and eco-friendly alternative to conventional petrol-driven “keke.”
The newly launched 8-seater electric tricycle, now available in Lagos with plans for nationwide distribution, features a dual-row seating arrangement capable of accommodating up to eight passengers per trip—significantly higher than the standard three-passenger configuration common across the country.
Promoters of the innovation say the increased capacity is designed to boost daily earnings for operators, particularly amid persistent fluctuations in fuel prices. By running entirely on electric power, the vehicle eliminates dependence on petrol, reducing operating costs and shielding drivers from fuel price volatility.
According to the distributors, the tricycle is equipped with a durable battery system capable of covering extended distances on a single charge, making it suitable for commercial operations across high-traffic routes, residential estates, campuses, and marketplaces.
“The concept is straightforward—enable drivers to earn more while spending less,” a company representative stated. “With higher passenger capacity and zero fuel requirements, operators can maximise each trip without the burden of daily fuel expenses.”
Beyond its cost-saving potential, the electric keke is also said to require less maintenance than traditional models, offering additional long-term savings. Its quieter and smoother operation is expected to enhance passenger comfort and overall commuting experience.
Industry analysts note that the introduction of electric mobility solutions reflects a growing shift toward cleaner and more sustainable transportation alternatives in Nigeria, particularly in densely populated urban centres such as Lagos.
The distributors added that the product is currently available under a limited promotional offer, with delivery options across the country.
For inquiries and purchase: 📞 08153432071
📞 08035889103
Office Address:
📍 Plot 9, Block 113, Beulah Plaza,
Lekki–Epe Expressway,
Lekki Phase 1, Lagos
As transportation costs continue to rise and environmental concerns gain prominence, innovations like the electric 8-seater keke may signal an emerging transition toward more efficient and sustainable mobility solutions nationwide.
Business
A Pipeline, a Licence, and a Storm Brewing: Corruption allegations Draw global oil giant, Shell, Into Nigeria’s Reform Test
*A Pipeline, a Licence, and a Storm Brewing: Corruption allegations Draw global oil giant, Shell, Into Nigeria’s Reform Test*
By Deji Johnson and Mustapha Bello
t begins with a pipeline that should have been completed by June 2026. It widens into a regulatory dispute. And it now risks becoming a defining test of Nigeria’s gas reforms under President Bola Ahmed Tinubu.
At the center is a stalled 80 kilometre gas pipeline from Sagamu to Ibadan, a project backed by over 100 million dollars in investment and built on a protected Gas Distribution Licence issued under the Petroleum Industry Act 2021. The licence granted NGML–NIPCO exclusive rights to distribute gas within Ibadan for 25years based on Nigeria’s Petroleum Industry Act.
On paper, the law is clear. On the ground, the situation is anything but.
For more than three months, construction has been halted following a stop work order issued by the Oyo State Government led by former Shell Contractor and engineer, Governor Seyi Makinde. No detailed public justification has been provided that aligns with existing federal approvals already secured for the project.
What might have remained a quiet regulatory disagreement has now escalated into something far more politically charged. How?
In recent remarks, Nigeria’s Minister of the Federal Capital Territory, Nyesom Wike, who is of the same political party as Governor Seyi Makinde, made a pointed allegation that has since rippled across political and industry circles. He suggested that the Governor of Oyo State and Shell were in what could be described as an “unholy alliance.”
It is a serious claim. One that, if substantiated, would raise profound questions about the intersection of corporate influence, state level action, and federal law.
Neither Shell nor the Oyo State Government has publicly responded in detail to the allegation.
But the silence is now part of the story.
*THE SHELL QUESTION*
For Shell, this moment carries particular weight.
The company has operated in Nigeria for decades, building one of its most significant global portfolios in the Niger Delta. But that history is not without controversy. From corruption claims to environmental damage claims and community disputes amongst others, Shell has faced years of litigation and, in several high profile cases, adverse rulings tied to its operations in the region.
Those cases, many adjudicated in foreign courts, have shaped a negative reputation that continues to follow the company.
Now, a new question emerges.
Is Shell once again operating at the edge of Nigeria’s regulatory framework seeking to exert undue influence in circumventing Nigeria’s petroleum laws, or firmly within it?
Industry sources including a widely reported meeting between their representatives, Oyo State Government representatives and the newly appointed midstream and downstream chief executive, indicate that engagements involving Shell and the Nigerian Midstream and Downstream Petroleum Regulatory Authority could enable the company to enter a gas distribution zone already licensed to another operator in breach of the PIA.
If true, the implications are immediate and far reaching.
A licence meant to protect investors and investments in Nigeria’s gas space ceases to be exclusive against the dictates of the guiding laws. A framework begins to look flexible, and a reform risks appearing reversible.
To many, it seems more than just a commercial dispute and is not just about one company versus another.
Nigeria is in the middle of an energy transition where gas is expected to play a central role in powering industries, stabilising electricity supply, and reducing reliance on expensive diesel. President Bola Tinubu has emerged as a global champion of using gas as a transition fuel in Nigeria and Africa whilst rolling out elaborate but clearly defined plans to achieve it. Yet gas availability remains inconsistent, constraining power generation and limiting industrial output.
Projects like the Sagamu to Ibadan pipeline are designed to close that gap. To halt such a project is to delay not just infrastructure, but impact. To undermine its legal basis is to question the system that enabled it and to introduce competing claims within the same licensed zone is to risk regulatory confusion at a time when clarity is most needed.
This is where the issue moves from commercial to national because at stake is not only an investment, but the credibility of the reform architecture itself.
*OYO STATE AND THE FEDERAL QUESTION*
The role of the Oyo State Government adds another layer of complexity.
Energy regulation in Nigeria, particularly in the gas sector, is governed by federal law. Yet implementation often intersects with state authority, creating spaces where jurisdiction can blur.
The stop work order issued on the pipeline has become the clearest manifestation of that tension. Was it a regulatory necessity?
A precautionary measure? Or, as alleged by Minister Wike, part of a broader alignment with external interests? Without transparency, speculation fills the vacuum and the regulator must avoid finding itself mired in such allegations.
*QUESTIONS THAT WILL NOT GO AWAY*
For Shell, the questions are now direct and unavoidable:
Is Shell, a global energy giant, seeking to operate within the Ibadan gas distribution zone already licensed to NGML–NIPCO?
What assurances, if any, has it received from regulators or state actors?
How does it reconcile such actions with the exclusivity provisions of the PIA?
For the regulator, NMDPRA:
Can a Gas Distribution Licence be effectively shared, diluted, or overridden after issuance? According to Nigerian laws, the answer is No.
What precedent does this set for Nigeria’s gas infrastructure market?
For the Oyo State Government:
On what legal grounds does the stop work order stand, given federal approvals already in place?
And how does this action align with national energy priorities or the state’s gas needs?
Nigeria has spent the last two years telling a new story to the world. A story of reform, of discipline, of a country ready to compete for global capital. And it has worked so far with stability returning to Nigeria’s economy and over $20bn of energy investments looking to enter the country in the short to midterm.
But reforms are not tested in policy papers. They are tested in moments like this.
Moments where law meets influence, investment meets interference and promise meets pressure.
For Shell, long mired in issues surrounding ethical operations in Nigeria, this is more than a business decision. It is a reputational crossroads.
For Nigeria, it is something even larger. Whether the country’s laws will hold when they are most challenged or Whether its reforms will stand when they are most inconvenient or even whether Nigeria’s energy investments future will be shaped by the rules of law, adherence to regulatory protections and provisions or by unethical and corrupt relationships.
Until those questions are answered clearly, publicly, and decisively, the pipeline in Ibadan will remain more than steel in the ground.
It will remain a symbol of a country still deciding which path it truly intends to follow. Nigeria must act quickly and decisively because the world is watching.
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