Oil prices topped $100 per barrel during much of the previous government’s tenure, which made these inefficiencies and leakages more affordable. This is no longer the case. For Nigeria to benefit more fully from its oil, President Muhammadu Buhari will have to change how NNPC works. In the short term, some basic steps would stem losses. The government could rein in NNPC’s discretionary spending (which has topped $7 billion in recent years), examine the utility of NNPC’s subsidiaries which tend to operate as financial black-boxes, and stop NNPC from doing business with unqualified and often politically-connected middlemen. Steps like these could be taken in the near term, while the government figures out a plan for restructuring NNPC into a more commercial entity.
Related Articles
How Resilient is the Energy Market in Midst of Middle East Crisis?
EXCLUSIVE EXPERT PERSPECTIVE -- One would have thought that the outbreak of a major war between Iran and Israel with daily missile salvos, would have [...] More
The New Age of Energy Crisis and Diplomacy
The energy pressures created by Russia’s invasion of Ukraine are continuing to shape a new global energy future. An EU embargo on Russian coal [...] More
Expert Brief: Iran, the Middle East and Strategies around Oil
The Middle East has demanded Washington’s attention on an almost weekly basis since President Biden took office in January. Since then, the White [...] More
President Biden's Middle East: A Briefing with Norman Roule
President Joe Biden’s administration is aiming its Middle East agenda on adhering to campaign promises, examining current policies and undoing some [...] More
An Energy Market Check In
ENERGY — 2020 has taken a toll on the world’s energy market, but just how bad is it? Experts say COVID-19, economic shutdowns and a disastrous oil [...] More
Where are Ripples from the Oil War Heading?
Global markets responded on Monday to fears of a second-wave of coronavirus infections and one of the industries feeling the pressure is the gas and [...] More
