General
NNPC Cuts Costs, Saves $3.4bn via Contract Restructuring
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited has saved $3.4 billion through a comprehensive contract restructuring and optimisation programme, according to its chief executive, Mr Bayo Ojulari.
This marks one of the company’s most significant efficiency gains since its transition into a commercially driven entity under the Petroleum Industry Act, PIA.
The state oil company’s head disclosed this while presenting the company’s one-year performance scorecard at the opening of the 25th NOG Energy Week in Abuja, where he outlined improvements in production, revenue generation, operational efficiency and investor confidence.
According to Mr Ojulari, the contract review programme eliminated operational waste, strengthened commercial discipline and lowered costs without disrupting production, demonstrating that efficiency-driven reforms can deliver stronger financial returns while enhancing competitiveness.
He said the company’s operational performance improved significantly over the past year, with crude oil production rising by six per cent to 569.7 million barrels, while gas production increased 8.1 per cent to 2.576 trillion standard cubic feet.
He revealed that government revenue generated by the company also climbed 21.8 per cent to N19.5 trillion during the review period.
Mr Ojulari disclosed that Nigeria’s crude oil production has increased to about 1.71 million barrels per day, the highest level recorded in five years, while NNPC Exploration and Production Limited (NEPL) achieved a record output of 365,000 barrels per day.
He reaffirmed the company’s production targets of two million barrels per day by 2027 and three million barrels per day by 2030, alongside plans to increase gas production from the current 7.62 billion cubic feet per day to 10 billion cubic feet by 2027 and 12 billion cubic feet by 2030.
The NNPC helmsman attributed the stronger production performance to improved operational stability, enhanced security and the restoration of critical oil infrastructure across the Niger Delta.
He revealed that Nigeria’s major crude export terminals achieved an average 98 per cent operational recovery between April 2025 and May 2026, a sharp turnaround from the severe disruptions experienced in 2022.
He added that key evacuation pipelines, including the Trans Niger Pipeline, Trans Escravos Pipeline, Trans Ramos Pipeline, Trans Forcados Pipeline and the Oando-Brass Pipeline, are now operating at full availability, significantly improving crude evacuation and boosting confidence among producers and investors.
Mr Ojulari also announced that NNPC maintained 100 per cent compliance with all Joint Venture (JV) cash-call obligations throughout 2025 and into June 2026, describing the achievement as a critical factor in sustaining investor confidence and preventing project delays.
However, he noted that while NNPC fulfilled all its funding commitments, some JV partners remained in default, increasing the company’s financial burden in several operations.
Beyond production, NNPC recorded major commercial milestones, including the execution of long-term Gas Sale and Purchase Agreements (GSPAs) covering 1.29 billion standard cubic feet per day of LNG feed gas and an additional 750 million standard cubic feet per day for domestic industrial gas supply to DFL FZE and the Dangote Refinery.
The company said the agreements are expected to unlock more than $20 billion in associated investments, with seven additional commercial transactions currently under negotiation.
Mr Ojulari further highlighted governance reforms introduced over the past year, including the resumption of monthly remittances to the Federation Account from July 2025, the restoration of monthly business performance reporting and the company’s first earnings call in November 2025, measures aimed at strengthening transparency and investor confidence.
Addressing industry stakeholders, Ojulari urged African governments, financiers, regulators and energy companies to deepen strategic partnerships to unlock the continent’s vast energy resources.
He observed that despite holding about 17 per cent of global natural gas reserves, Africa continues to attract only a small share of global energy investment, stressing that stronger collaboration across the public and private sectors will be essential to drive industrialisation, improve energy security and maximise long-term value from the continent’s natural resources.
By Adedapo Adesanya
The Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has announced that Nigeria will launch a new alphanumeric postcode system on October 1, 2026, with every home expected to have a unique postcode.
Mr Tijani disclosed the development in a video post on X, describing the new system as a more precise and digitally oriented approach to addressing locations across the country.
He said the initiative would mark a significant shift in Nigeria’s postal addressing system by assigning unique postcodes to individual homes.
The initiative marks a major step in Nigeria’s digital transformation agenda. By replacing the outdated numeric-only system, the alphanumeric codes provide a more flexible and scalable framework that can accommodate the country’s rapid urban growth and diverse settlement patterns.
For emphasis, an alphanumeric postcode system is a postal indexing system that uses a combination of both letters (alpha) and numbers (numeric), along with spaces or punctuation, to identify specific geographic locations, streets, or individual buildings for mail delivery.
Unlike purely numeric postcode systems (such as the 5-digit US ZIP Code or 5-digit codes used in some European countries), alphanumeric codes offer a much higher number of unique combinations using fewer total characters. This flexibility allows postal authorities to pinpoint locations with incredible precision, often down to a single side of a street or a specific large building.
“On October 1st 2026 Nigeria’s new Alphanumeric Postcode System goes live,” Mr Tijani said.
“For the first time, every home will be assigned a unique postcode that’s simple, precise and built for a digital future,” he added.
The minister urged Nigerians to prepare to generate their individual postcodes ahead of the launch.
The new system is expected to strengthen Nigeria’s digital addressing infrastructure and improve the identification and location of homes and properties for postal and other location-based services.
The initiative is being implemented in collaboration with the Nigerian Postal Service (NIPOST) as part of broader efforts to modernise the country’s addressing and digital infrastructure.
By Modupe Gbadeyanka
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has been directed to give an account to Nigerians on how the current government has fared since its inception on May 29, 2023.
This directive was given by President Bola Tinubu in a message posted on his verified social media handles on Wednesday.
This coincides with the commencement of campaigns for the 2027 presidential election scheduled for January 16.
According to the timetable of the Independent National Electoral Commission (INEC), candidates seeking to become the country’s president are eligible to kick off their campaigns from today, Wednesday, August 19, 2026.
In his message today, Mr Tinubu said, “When we began this journey of reform in 2023, I promised that the difficult decisions we were making would serve the purpose of building an economy that works better for you and a country that is stronger for our children.
“Today, your government presents The Reforms Scorecard. It sets out what our reforms have achieved, what they have cost us, and the greater costs and harms we have prevented by acting when we did.
“I have therefore directed the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, to give an account to Nigerians, to explain the numbers, the choices we have made, the progress recorded, and the work that remains.
“You deserve to see the numbers. You deserve to know what has changed and what these reforms mean for you, your family, your business and our country.
“This is your government. This is your country. This is our account to you.”
Shortly after he took the oath of office over three years ago, President Tinubu declared that subsidies on petroleum products were gone. He later approved foreign exchange (FX) reforms, which devalued the Nigerian Naira, shooting from about N800 per Dollar to nearly N2,000 per Dollar. However, it is currently slightly above N1,340 per Dollar in the official market.
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited and the Nigerian Agip Exploration (NAE) Limited are advancing discussions on the development of deepwater assets estimated to hold 500 million barrels of oil reserves.
The development followed a meeting between the chief executive of the state oil company, Mr Bayo Ojulari, and Agip’s Vice Chairman and Managing Director, Mr Maurizio Pinna, in Abuja.
The talks focused on ongoing work on deepwater acreage jointly held by NNPC, NAE and Shell Nigeria Exploration and Production Company (SNEPCo) as well as plans to bring the associated resources into production.
According to NNPC, the acreage comprises the Zabazaba and Etan deepwater fields, with estimated reserves of about 500 million barrels.
The fields are located in Nigeria’s deepwater terrain and are considered significant to the country’s efforts to expand its upstream oil production base, particularly as operators seek to advance projects capable of delivering additional barrels over the medium to long term.
While details of the expected production timeline were not disclosed, the meeting underscores renewed industry focus on unlocking Nigeria’s deepwater resources and growing crude oil production.
The acreage comprises licences converted from OPL 245 and is operated by NAE in partnership with NNPC Limited and SNEPCo.
Mr Ojulari and Mr Pinna also reviewed the work currently underway on the assets and the expected production outlook, with the discussions centred on advancing deepwater development.
The engagement comes amid renewed efforts to attract investment into Nigeria’s offshore petroleum resources and increase national oil production.
