June 13, 2023

Nigerian President Bola Tinubu has been advised to reduce the state’s stake in the oil and gas sector to raise up to $17 billion to boost economic growth during his four-year term, a policy document showed.

The proposals, drawn up by Tinubu’s policy advisory team and first reported by Nigerian media at the weekend, would represent a major shake-up of the sector that has been Nigeria’s economic lifeblood since the 1960s.

Under the plans, the state-controlled Nigerian National Petroleum Corporation Ltd (NNPC) would sell part of its stakes in joint ventures it operates with oil majors.

The document finalised in May and seen by Reuters says NNPC would “form global strategic partnerships with coventurers (and) sell down interests in JVs to a minority position and develop an operating model that eliminates cash calls”.

The advisory team also recommends stripping NNPC of any policy-making role for the energy sector, as well as consolidating Nigeria’s multiple energy-related regulators into a single body.

If Tinubu adopts the proposals, a substantial portion of the Petroleum Industry Act (PIA) would have to be amended by the new National Assembly, which will be inaugurated on Tuesday following elections in February.

REUTERS