NRGI urges NNPC to reassess oil investment strategy

The Nigerian National Petroleum Company Limited (NNPC) has been urged by the Natural Resource Governance Institute (NRGI) to reevaluate its oil investment strategy due to the potential risks posed by the global energy transition. At a policy forum in Abuja, NRGI highlighted that national oil companies (NOCs) control a significant portion of global oil and gas reserves, making their investment decisions crucial to the pace and direction of the energy transition.

Nigeria, which aims to achieve net-zero emissions by 2060, is using natural gas as a transition fuel while expanding other sectors, including power and clean cooking. However, only 7% of NNPC's public positioning aligned with Nigeria's definition of the energy transition, with 45% of its publications classified as misaligned or contradictory.

NRGI stressed that business as usual is not a viable option, as inaction would leave Nigeria and Nigerians exposed to fiscal, economic, and social risks. NNPC needs to develop a clearly defined and publicly available strategy that assesses fiscal and social risks, identifies new business opportunities, and determines how its role should evolve over time.