Article summary
- Tony Elumelu and Dangote believe that the NNPCL has the capacity to be Africa’s biggest energy company.
- However, previous standpoints of other stakeholders encourage the sale of NNPCL.
- NNPC Retail Limited is already the biggest downstream company in Africa through its acquisition of OVH Energy Marketing, the owner and operator of the Oando branded retail service stations.
Nigerian businessmen and industrialists Aliko Dangote and Tony Elumelu have both expressed confidence in the Nigerian National Petroleum Company (NNPC) Limited.
They shared their thoughts during the NNPC Upstream Investment Management Services (NUIMS) Annual Value Assurance Review Session held in Lagos State on May 10, 2023.
According to NNPCL, the two businessmen expressed their belief that the company, which recently rebranded as a private entity, has the capacity to position itself as Africa’s biggest energy company. The company stated further through its Twitter account that Dangote believes in the company’s future.
Dangote said that considering the massive opportunities at its disposal, the company has what it takes to be “Africa’s Aramco,” because anything is possible.
Meanwhile, Elumelu said he is a beneficiary of the NNPCL. He extolled the remarkable growth achieved by the company and its impact on the Nigerian economy. He also praised the company for delivering Heirs Holding Oil and Gas Limited from a 97% loss of crude oil per day to a 96% recovery in crude oil production.
Contrasting views
Meanwhile, some stakeholders have doubted the NNPC’s capabilities in leading the country’s oil and gas industry forward. In 2022, Kaduna State Governor, Mallam Nasir Elrufai and the former Emir of Kano, Alhaji Sanusi Lamido Sanusi, called for the scrapping and sale of the NNPC following its abysmal performance over the years.
According to the Emir, who spoke at an event in Kaduna State in October 2022, the NNPC is a money pit instead of a cash cow; so, it should be unbundled and disbanded. He said:
- “More can be had from simply levying royalties and CIT on private players, following models like Petronas and Petrobras. Beyond the challenging global context, Nigeria has problems entirely of its own making. Oil revenues, which were once the lifeblood of the Federal Government, have been in secular decline for over a decade. This has been happening regardless of the oil price environment.”
Meanwhile, at the same event in October 2022, Governor Nasir El-Rufai said:
- “When I say the government should get out of oil and gas, people shouldn’t think it’s crazy; it’s not. There is no reason the government of Nigeria should be in the oil and gas sector. It has failed by every measure; they should just get out.
- “This year, NNPC hasn’t brought N20,000 to the federation account. We are living on taxes. It is PPT, royalties, and income tax that are keeping this country going. Because NNPC claims that subsidies have taken all the oil revenues, I don’t believe that.
- “So, the government should sell everything, including the oil and gas sector. I have been making this point since 1999, when I was head of the Bureau of Public Enterprises (BPE). I have not changed my mind. The government should get out of whatever is left of electricity. Leave it to the private sector. Maintain the environment. The money will come.”
What you should know
The Nigerian National Petroleum Company (NNPC) Limited has plans to increase energy access in Nigeria by investing in natural gas and expanding the country’s oil production capacity by exploring frontier basins in the country. The company has already started exploration work in Gombe, Bauchi, and Nasarawa states.
It is also important to note that NNPC Retail Limited is already the biggest downstream company in Africa through its acquisition of OVH Energy Marketing in October 2022. OVH Energy Marketing was the owner and operator of the Oando-branded retail service stations.
