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The Digest:

Amid concerns over Nigeria's low oil output, the Presidency is signalling a major shake-up of the NNPC's asset ownership model. According to official statements, the government questions the state oil firm's capacity to fund and execute the drilling campaigns needed to boost production, advocating for "performance-based stewardship, not sentiment."

Key Points:
  • Presidential Adviser Olu Verheijen revealed plans to restructure NNPC asset ownership.
  • She expressed doubt about NNPC's ability to fund necessary drilling campaigns.
  • NNPC E&P Ltd currently produces only 220,000 barrels per day.
  • The government may invite new operators with technical and financial capacity.
  • Verheijen outlined a framework focusing on reserves, revenues, reliability, and responsibility.
  • The administration aims to move beyond sentiment to revitalise the sector.
  • NNPC's Chairman stated a vision to become Africa's "incontestable energy company" within five years.
This potential overhaul marks a critical pivot, challenging the state-owned giant's role and prioritising capable partners to secure Nigeria's energy future and economic stability.

Sources: The PUNCH