From 1977 to NNPC Limited: How the Company Transformed Over 5 Decades

The journey of the Nigerian Petroleum corporation began in 1977 to 1980. 

NNPC has faced some challenges in its early years and struggled to merge the functions of regulations and commercial operations which is said to be caused by the conflict of interest.

One of the main downfalls was when the Nigerian Petroleum Corporation depended heavily on foreign oil companies for operations.



Despite the ups and downs, allegations of mismanagement and lack of transparency the corporation has still managed to succeed.

Let's learn more about the journey and How the Company Transformed Over 5 Decades.

Also read; https://www.nnpcnews.com.ng/2025/08/the-untold-story-of-nnpc-why-nigeria.html

The first big makeover (1988)

The federal government attempted to restructure the corporation in 1988.All these were done in an effort to make it more efficient and commercially oriented.

  • The first major restructing was under Babangida’s economic reforms (SAP) in 1988.
  • It was broken into 12 subsidiaries (SBUs) so each one could focus on specific areas like;

  1. refineries
  2. pipelines
  3. data services.

NAPIMS also set up to manage the government's investments with international oil companies.

NNPC was expected to operate like a profit-driven business rather than a civil service agency.

This makeover gave NNPC a modern corporate structure, but challenges such as inefficiency and corruption still persisted.

Read also;Nigerian Upstream Petroleum Regulatory Commission

Transparency Tug-of-War (1990s–2010s)

  • NNPC was accused of poor records which led to rising calls for openness to make sure there are no hidden deals and unclear revenue in 1990.
  • Early 2000s: Civil groups and global watchdogs pressed for full disclosure of oil sales and earnings.
  • 2003: NNPC came in to spotlight after Nigeria joined the Extractive Industries Transparency Initiative (EITI).
  • 2000s–2010s: Reports exposed gaps in missing funds and unremitted oil revenues.
  • Reforms were promised by government audits ordered, but secrecy often returned.
  • Billions lost to fake claims shook trust in NNPC’s books in 2012 fuel subsidy scandal.

The Law That Changed Everything (2021)

The Petroleum Industry Act (PIA) was signed into law in August 2021.

 It ended more than 20 years of failed oil-sector reforms.

 It transformed NNPC from a government corporation into NNPC Limited, a company under the Companies and Allied Matters Act (CAMA).

Also read; https://petroleumresources.gov.ng/our-history/

The law changed everything:

  • Ownership moved to the Ministry of Finance Incorporated (MOFI) and the Ministry of Petroleum Incorporated (MOPI) on behalf of the Federation.
  • NNPC Limited became free from Treasury Single Account rules.

  • It was exempted from public procurement restrictions.

  • It gained power to raise capital, enter joint ventures, and invest like a commercial company.
  • Regulation of the oil sector shifted to new independent bodies, separating business from oversight.

The PIA marked the biggest reform in Nigeria’s oil industry since 1977.

Incorporation (Late 2021–July 2022)

NNPC Limited was incorporated under CAMA after the PIA.

it was officially unveiled On July 19, 2022.

  •  Assets and liabilities of the old NNPC were transferred to the new company.
  •  This marked the legal birth of a commercial oil company owned by the Federation.

What “Limited” Really Changed

The new structure changed how NNPC worked.

  • Shares were held by MOFI and MOPI.
  • The company was freed from Treasury Single Account rules.

  • It no longer followed government procurement laws.
  • It could raise capital like any private company.

  • It retained its role as concessionaire in oil production contracts.

Early Signals Post-PIA (2022–2024)

  • NNPC Limited started showing signs of change.
  • It published audited accounts, something never done before 2020.
  • It reduced cash-call debts in joint ventures.
  • It pushed for incorporated joint ventures to attract investment.

  • It promised transparency but struggled with consistency. The period showed progress, but also revealed how difficult full reform would be.

New Leadership & Reform Drive (2025)

In April 2025, the President appointed a new board.

Bayo Ojulari, a former Shell executive, became CEO.

The move signaled fresh energy for reform.

  • Plans were made to cut non-core assets.

  • Focus shifted to transparency and governance.

  • Talk of future capital raising became louder.
  • This leadership change renewed hope for commercial discipline.

How It Succeeded

Over five decades, NNPC moved from a government-controlled corporation to a commercial company.

 The PIA provided the law.

 The 2022 unveiling gave it a new identity.

 The early years tested its promises.

 The 2025 leadership pushed it further.

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