NNPC Defends Ojulari, Says Crude Output Rose 6% Amid Licensing Round Criticism

The Nigerian National Petroleum Company Limited (NNPC Ltd) has defended the performance of its management under Group Chief Executive Officer (GCEO), Bayo Ojulari, saying crude oil production increased by 6 per cent and gas output by 5 per cent between April 2025 and April 2026.

The company’s response follows criticism attributed to the Oil and Gas Professionals Forum (OGPF) over the recently concluded 2025 oil and gas licensing round conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

In a statement issued on Saturday by Andy Odeh, NNPC’s Chief Corporate Communications Officer, the national oil company rejected any suggestion that its leadership should be held responsible for the outcome of the licensing exercise.

NNPC said the allocation of oil blocks and the conduct of licensing rounds are regulatory functions vested in NUPRC under the Petroleum Industry Act (PIA) 2021, while the company operates as a commercial entity without regulatory or allocative powers.

The clarification comes less than three weeks after NUPRC announced the emergence of 31 companies as winners of 37 oil and gas blocks under the 2025 licensing round.

The regulator said 143 companies submitted 200 bids for 37 of the 50 blocks offered. The remaining 13 blocks attracted no bids.

The blocks span the Niger Delta onshore and shallow-water areas as well as frontier basins, including the Benin, Anambra, Chad and Benue basins. NUPRC described the level of interest in the frontier areas as unprecedented in Nigeria’s energy history.

Licensing Round Was NUPRC’s Responsibility

NNPC said criticism of its leadership based on the licensing round appeared to overlook the institutional separation established by the PIA.

“Under the Petroleum Industry Act (PIA) 2021, the conduct of oil licensing rounds and the allocation of oil blocks fall squarely within the statutory mandate of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC),” the company said.

NNPC added that since its incorporation as a commercial entity, it had operated without regulatory or allocative authority.

The distinction is significant because the 2025 licensing round was designed and administered by NUPRC, with the commission overseeing the bidding process, evaluation and subsequent award procedures.

NUPRC’s licensing-round portal had earlier outlined a process covering announcement and registration, prequalification, technical and commercial bid submission and evaluation, the commercial bid conference and ministerial approval and contracting.

The commercial bid conference was held in Abuja on July 21, after which NUPRC announced 31 successful companies for 37 blocks.

However, the awards are subject to further requirements, including payment of applicable signature bonuses and ministerial approval. The regulator also warned successful bidders that failure to meet stipulated development conditions could result in the loss of the assets under its “drill or drop” approach.

Crude Oil Production Rises 6%

While distancing itself from responsibility for the licensing round, NNPC shifted attention to its operating performance, citing higher crude oil production under the current leadership.

According to the company, average crude oil production stood at 1.60 million barrels per day (mbpd), including condensate, in April 2025.

By April 2026, production had risen to 1.67 mbpd, representing an increase of about 80,000 barrels per day, or roughly 6 per cent.

NNPC said the figures were contained in its publicly available monthly performance reports.

The improvement comes as Nigeria continues efforts to restore crude production after years of underinvestment, oil theft, pipeline vandalism and operational disruptions that have constrained output.

The recovery in production has become particularly important to government finances because crude oil remains a major source of foreign exchange and fiscal revenue for the country.

Recent production gains have also been supported by renewed investment and efforts to bring additional volumes into the market.

The company said its production trajectory showed “clear and sustained improvement” under the current leadership.

Gas Output Also Records Growth

Average gas production increased from 7,354 million standard cubic feet per day (mmscfd) in April 2025 to 7,729 mmscfd in April 2026.

That represents an increase of 375 mmscfd, equivalent to about 5 per cent, according to the company.

The increase is significant for Nigeria’s broader energy strategy as the government seeks to expand domestic gas supply while maintaining the country’s position as a major gas exporter.

Gas availability remains critical to electricity generation, industrial activity and the development of gas-based industries, while projects such as the Nigeria-Morocco Gas Pipeline and the expansion of regional gas infrastructure are expected to deepen the market over the longer term.

NNPC has previously identified gas development as a major component of its strategy to reposition itself as a commercial energy company and support Nigeria’s wider industrialisation objectives.

In February, NUPRC and NNPC also pledged to deepen cooperation to improve operational efficiency and attract fresh investment into the upstream sector. 

Ojulari said at the time that NNPC’s success was closely linked to the regulator’s stewardship of the industry.

Production Recovery Still Faces Structural Constraints

Despite the improvement cited by NNPC, the increase in output should be viewed against the scale of Nigeria’s production ambitions.

The country has repeatedly targeted a return towards 2 mbpd, but achieving that level consistently requires more than short-term increases from individual fields.

Production depends on sustained investment in existing assets, development of new fields, improved security around oil infrastructure, reliable evacuation systems and a regulatory environment capable of supporting long-term capital commitments.

The latest licensing round is consequently important beyond the immediate question of who won particular blocks.

Of the 50 blocks offered, 13 received no bids, meaning a significant portion of the acreage did not attract sufficient investor interest during the exercise.

At the same time, the 37 blocks that attracted bids could provide an additional pipeline of exploration and development activity if successful bidders meet their financial and technical obligations.

That means the eventual impact of the licensing round on Nigeria’s production profile will depend less on the announcement of winners and more on how quickly the assets move from award to exploration, appraisal, development and production.

Investment Will Determine Whether Gains Are Sustained

For NNPC, the immediate argument is that the company should be assessed on areas within its commercial mandate rather than on functions assigned to the upstream regulator.

The production figures cited by the company provide evidence of improvement, but sustaining that trajectory will require continued capital investment across the upstream value chain.

Nigeria’s oil industry has faced years of declining investment as operators contend with ageing infrastructure, security challenges, regulatory uncertainty and the rising cost of developing increasingly complex assets.

The recent increase in crude production therefore represents a recovery from a low base rather than an indication that the structural constraints facing the sector have disappeared.

NNPC itself acknowledged the need for a stronger operating environment during its engagement with NUPRC earlier this year, with Ojulari calling for lower operating costs to attract new investments and strengthen energy security.

The company’s latest statement also highlights the increasingly commercial nature of NNPC following its incorporation under the PIA.

Rather than exercising the regulatory powers historically associated with the national oil company, NNPC Ltd is expected to operate as a commercial participant in the petroleum industry, while NUPRC handles upstream regulation and licensing.

NNPC said it remained open to scrutiny but warned that criticism of its operations should be based on verifiable information.

The company said it would continue to engage with analysts, industry groups and other stakeholders while reserving the right to protect its reputation and that of its leadership from what it described as false or unsubstantiated claims.

It urged industry commentators and professional associations to verify information through appropriate regulatory and corporate channels before publication.

The licensing round has created a new pool of assets for prospective investors, while NNPC’s latest production figures suggest that output from existing operations is recovering.

The bigger test, however, will be whether these developments can be converted into sustained production growth, increased investment and stronger government revenues over the coming years.