NNPC clears legacy debts, boots local oil companies

All local oil companies have been cleared of their legacy debts by the management of the Nigeria National Petroleum Company Limited, NNPCL, thus boosting their financial base.

This was disclosed by the Chief Executive Officer of Seplat Energy Plc, Roger Brown, stating that local companies now operates with improved financial alignment and discipline.

In what he described as “a game changer” for indigenous oil producers, Brown said, this was made possible as the NNPCL has transformed its payment and cash flow organ thereby encouraging partnership with independent oil firms.

He stated this at a high-powered panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 2025 Nigerian Oil and Gas conference on Wednesday in Abuja, Brown praised NNPCL for its renewed focus on operational efficiency and partnership.

“Yesterday (Tuesday), you heard from the GCEO (of NNPC) talking about what NNPC is doing. One of the big things is cash flows and ensuring that, and I will tell you a story. When we listed in 2014, we raised $500m, that is half a billion dollars. And NNPC owed us $550m. More than we raised in our IPO. And that is a thing of the past.”

“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.

CAPITAL POST recalled that the immediate past management of the NNPCL, under the leadership of Engr. Mele Kyari had struggled with multi-billion dollar debts that almost frustrated local oil producers.

In 2024, domestic and foreign suppliers of petroleum products stopped supplying the commodity due to about $6bn debt.
Reflecting on Seplat’s acquisition of ExxonMobil’s onshore assets in 2024, Brown said indigenous companies were now better prepared to operate and optimise divested assets.

“So when we completed the Mobil acquisition last year, we were ready for it. The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term,” he said.

He added, “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. That’s the mindset we bring to these prolific assets in the onshore and shallow water offshore space.”

Brown noted that Seplat currently holds 11 blocks, eight of which it operates, across oil and gas terrains, with a growing focus on domestic gas monetisation and exports through LNG and CNG.

“We are already supplying NLNG. But we’re also preparing for LNG projects under development, and we’re investing heavily in domestic gas to meet local demand,” he added.

Also speaking on the panel, the Managing Director, Oando Energy Resources Nigeria Limited, Dr Ainojie Irune, lauded the NNPC’s strategic focus and improved collaboration with independent operators.

“This is the first time we have a national energy company focused on production targets, not 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.”

According to him, indigenous companies, once considered fringe players, are now the backbone of Nigeria’s energy future.