NNPCL: Can Nigerians Now Enjoy Better Fuel Economy Days?

Amid the Federal Government's recent winding up of the Nigerian National Petroleum Corporation (NNPC) after 46 years of operation and employing the Petroleum Industry Act (PIA) enabling the Nigerian National Petroleum Company Limited (NNPCL) in its place, Nigerians are now wondering what to expect.

NNPCL was set up in 2021 in line with the Corporate Affairs Commission’s companies registration rules following the enactment of the PIA. 

Speaking at an event to officially mark the end of NNPC in Abuja, the Minister of State, Petroleum Resources, Chief Timipre Sylva said with the reforms introduced by the Federal Government, NNPCL is expected to be a competitive and commercially oriented company.

Chief Sylva explained that the reforms are expected to make the Nigerian oil and gas industry attractive to investors both locally and foreign. 

“The PIA empowered NNPC Limited to operate like every private company in Nigeria with exemption from the Fiscal Responsibility Act, Public Procurement Act, and TSA in order to ensure there are no excuses for failure.

“In return for this empowerment, the PIA expects a strong commercially oriented National Energy company with an obligation to operate profitably and deliver dividends to shareholders

“NNPC Limited is positioned to lead Africa’s gradual transition to new energy, by deepening natural gas production to create low-carbon alternatives and change the story of energy poverty at home and around the world”.

Also on his part, the Group Chief Executive of NNPCL, Mele Kyari, noted that the new company with over $60 billion in assets would look to boost its profit from the current $2 billion declared by the oil corporation for 2021 operation.

Kyari pointed out that NNPCL has a powerful brand and it’s able to attract funding for its businesses, assuring that the company would deliver energy security to the Nigerian people while making money for the country.

“By fiscal 2020, we returned this company from 43 years of loss to a profit position of N287 billion, and by 2021 we came to a profit level of N674 billion.

“We believe we’ll do better in 2022 despite all the challenges.

“But I must also add that this is not an N670 billion company. By the way, this is less than $2 billion. We’re not a $2 billion profit company.

 What Does This Portend to the Economy and Nigerians?

While Nigeria’s dependence on oil is deep-rooted, the country continues to suffer from the effects of the Dutch Disease which began when oil was discovered in the 1960s. 

This 'disease' has made Nigeria focus its efforts predominantly on its oil resources at the detriment of other otherwise vibrant and rewarding sectors.

However, decades down the line since the striking of oil, little has changed in Nigeria.

Nigerians can only boast of the federal capital territory as being where the petro money has been lavishly expended. 

But even at that, who are the beneficiaries?

Can we say the life of an average man in Nigeria is better than that of an average citizen from a non-oil-producing country?

Can the NNPC's rebirth bring a lasting solution to the perennial fuel scarcity being suffered by Nigerians?

We must examine the prospects of a rebranding of the NNPC to NNPCL against the backdrop of what the average citizenry should expect going forward.