President Bola Tinubu has authorised amendments to Nigeria’s Petroleum Industry Act (PIA), raising concerns that the changes could render the NNPCL Board redundant. The PIA, hailed as Nigeria’s most comprehensive petroleum legislation, had vested sweeping powers in the board as the corporation’s highest decision-making organ.
The amendment—initiated by the Ministry of Finance to plug revenue leakages—transfers ownership of all NNPCL shares solely to the Ministry of Finance Incorporated (MOFI), displacing the Ministry of Petroleum Incorporated. It also designates the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as concessionaire in all Production Sharing, Profit Sharing, and Risk Service contracts, replacing NNPCL. Analysts warn this shift could expose the corporation to excessive fiscal and political control.
The reforms overhaul governance by reducing NNPCL’s autonomy and strategic influence, potentially leaving its board sidelined. Industry experts, including Petroleum Economist Wumi Iledare, argue the changes should have awaited fuller implementation of the PIA while tackling corruption directly. Concerns persist that weakening the board’s role undermines corporate governance principles, risks political interference, and disrupts the delicate balance between regulators and operators. Unless carefully managed, the amendment could destabilise Nigeria’s oil sector at a critical time of fiscal strain and production challenges.
