The Nigerian National Petroleum Company Limited (NNPC Ltd.) has cleared its long-standing debts, a move that is being celebrated as a major breakthrough for indigenous oil producers in Nigeria.
Speaking at the 2025 Nigerian Oil and Gas (NOG) conference in Abuja, Seplat Energy’s CEO, Roger Brown, praised NNPC’s new financial approach. He recalled that when Seplat listed on the stock exchange in 2014, NNPC owed the company more than it had raised through its initial public offering. That debt is now fully paid, according to Brown, who described the current relationship with NNPC as more transparent and better aligned.
He emphasized that this financial clean-up has strengthened trust and cooperation between NNPC and independent oil producers. “Cash flows have been sorted out. There’s alignment now—it’s a real partnership,” he said.
For years, NNPC battled with billions of dollars in debt owed to local and foreign fuel suppliers, which stalled operations and discouraged investors. In 2024, fuel deliveries were halted by suppliers due to unpaid bills totaling about $6 billion.
Now, with these debts cleared and a new financial structure in place, companies like Seplat say they are in a better position to invest and expand. Brown also pointed to Seplat’s 2024 acquisition of ExxonMobil’s onshore assets as a sign that local players are ready to lead. He noted that indigenous firms are resilient, deeply rooted in local communities, and focused on long-term development.
Seplat currently manages 11 oil and gas blocks, eight of which it operates. The company is also increasing its investments in domestic gas supply and export projects, including liquefied natural gas (LNG) and compressed natural gas (CNG).
Oando Energy Resources’ Managing Director, Dr. Ainojie Irune, echoed Brown’s sentiments, saying NNPC has become more efficient and focused. He noted that independent oil firms are now playing a central role in Nigeria’s upstream oil production strategy.
Shell Nigeria’s Managing Director, Ronald Adams, also shared updates at the event, confirming that the Ubonga North project which received final approval in late 2024 is expected to add 100,000 barrels per day to Nigeria’s output by 2027.
Industry leaders say these positive developments signal a new era for Nigeria’s energy sector, led by indigenous companies and supported by a more reliable NNPC.
