NNPC clarifies it doesn’t oversee licensing rounds
NNPC Ltd. has clarified that the conduct of oil licensing rounds is the statutory responsibility of NUPRC, while also defending its crude oil production record under current management.
The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) says the recently concluded oil licensing round falls within the statutory mandate of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The company made the clarification in a statement issued in Abuja on Saturday by its Chief Corporate Communications Officer, Mr Andy Odeh.
The clarification followed recent media reports which were attributed to the Oil and Gas Professionals Forum (OGPF), questioning the performance of NNPC Ltd.’s management under its Group Chief Executive Officer, Mr Bayo Ojulari, particularly on the licensing round. Odeh said under the Petroleum Industry Act (PIA) 2021, the conduct of oil licensing rounds and allocation of oil blocks were the statutory responsibilities of NUPRC.
Odeh said NNPC Ltd., since its incorporation, had operated strictly as a commercial entity and did not possess regulatory or allocative powers, while its crude oil production had recorded sustained growth under the current leadership. He said as of April 2025, average crude oil production stood at 1.60 million barrels per day inclusive of condensate, rising to 1.67 mbpd by April 2026, representing six per cent growth. Gas production also increased from 7,354 million standard cubic feet per day in April 2025 to 7,729 mmscfd in April 2026, representing five per cent growth.
The clarification is a reminder of the separation of powers under the PIA. NNPC is no longer the regulator; it is a commercial entity. The confusion, however, persists. The public often conflates NNPC’s commercial role with the government’s regulatory role, leading to misplaced criticism. The company’s defence of its production record is a sign that it is sensitive to public perception.
This echoes the 2021 transition of NNPC to a limited liability company, which also saw confusion about its new role. The mechanism then was different, but the result was the same: a need for clarity about NNPC’s responsibilities.
The winners: NNPC Ltd., which has clarified its role and defended its performance; and the Nigerian public, who now have a clearer understanding of the company’s responsibilities. The losers: the Oil and Gas Professionals Forum, whose claims have been rebutted; and the Nigerian government, which must ensure that the regulatory framework is properly understood.
Bottom Line: NNPC says it doesn’t oversee licensing rounds. The company is defending its production record. The question is whether the public will accept the clarification.