Nigeria’s oil and gas industry is welcoming what executives describe as a major shift in the Nigerian National Petroleum Company Limited’s (NNPC’s) financial discipline and partnership model. Seplat Energy Plc CEO, Roger Brown, called the clearing of NNPC’s longstanding debts “a game changer” for independent oil producers, enabling smoother collaboration and renewed investor confidence.
Speaking on Wednesday at the 2025 Nigerian Oil and Gas Conference in Abuja, Brown highlighted how NNPC’s improved cash flow management has transformed the operating environment.
“Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership. And that’s what the indigenous players are bringing to the party here,” he said during a high-level panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation.”
Legacy Debts Once Constrained Industry Growth
Brown recounted Seplat’s own early struggles with unpaid receivables, explaining that when the company listed in 2014 and raised $500 million in its IPO, NNPC owed it $550 million—more than the funds it had just raised.
“That is a thing of the past,” he told the conference audience.
For years, NNPC’s multi-billion-dollar debts to local and international suppliers strained the entire sector. The backlog hindered payments to joint venture partners, delayed projects, and undermined trust in Nigeria’s upstream investment climate. As recently as 2024, suppliers halted deliveries of petroleum products over debts estimated at $6 billion.
Brown praised the national oil company’s new focus on clearing these liabilities and adopting disciplined financial management, saying it has created the foundation for stable, long-term partnerships with indigenous producers.
Indigenous Producers Seen as Backbone of Upstream Strategy
Reflecting on Seplat’s acquisition of ExxonMobil’s onshore assets in 2024, Brown argued that Nigeria’s independent oil companies are now better positioned to manage and optimise these divested assets.
“So when we completed the Mobil acquisition last year, we were ready for it,” he said. “The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term.”
He underscored the resilience of local operators in the face of challenges. “When things go wrong, which they inevitably will, we don’t panic. In 2016, our pipeline was shut down. In 2017, we didn’t run away. You can’t run from your own home.”
Brown noted that Seplat now holds 11 oil and gas blocks—eight of which it operates—and is expanding its domestic gas business. The company supplies Nigeria LNG (NLNG) and is preparing for additional LNG projects while investing in compressed natural gas (CNG) and local market supply.
Industry Peers Echo Support for NNPC’s Strategy
Other industry leaders at the conference also praised NNPC’s transformation. Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, said this is the first time Nigeria’s national energy company is truly focused on production goals without being distracted by unrelated mandates.
“It’s staffed by the right people in the right places,” Irune said. “Charity begins at home, and NNPC has begun that charity. They are tackling security, OPEX, and even streamlining contracting processes. The rest of us must align.”
He described indigenous producers—once seen as marginal players—as now central to Nigeria’s upstream growth strategy. “Independents have moved from the base of the pyramid to leading Nigeria’s upstream strategy. With a reliable partner like NNPCL, the future is very achievable,” Irune added.
New Projects to Boost Production Capacity
Meanwhile, the Managing Director of Shell Nigeria, Ronald Adams, offered an update on the Ubonga North oil project, which reached Final Investment Decision in December 2024. The project is expected to add up to 100,000 barrels of crude oil per day to Nigeria’s production capacity by mid-2027, contributing further to the country’s ambitions to strengthen its oil output and revenues.
Outlook: Stronger Partnerships and Resilient Growth
The tone at the conference reflected cautious optimism. With legacy debts cleared, streamlined contracting, and closer alignment between the NNPC and private operators, Nigeria’s oil sector appears better positioned to attract new investment, enhance production, and deliver long-term energy security.
Industry leaders signaled that while challenges remain—including security risks and community engagement—the foundations for a more resilient, collaborative oil and gas industry are being laid.