By Kelechi Onwujuba
For more than two decades, the Nigerian National Petroleum Company Limited (NNPC) has remained at the heart of Nigeria's economy. As the custodian of the country's oil and gas resources, the company plays a major role in generating government revenue and foreign exchange earnings. Yet, since Nigeria returned to democratic rule in 1999, NNPC has been trapped in a cycle of corruption allegations, failed projects, political interference and management controversies.
Almost every administration has promised to reform the company and new leaders have repeatedly pledged transparency, efficiency and accountability. Committees have been set up, audits carried out and restructuring exercises launched. However, despite these efforts, many of the problems that have plagued the company remain unresolved.
Over the years, billions of dollars have been spent on Turnaround Maintenance (TAM), a programme designed to restore and improve refinery operations, yet, despite the huge spending, the Port Harcourt, Warri and Kaduna refineries have continued to struggle. For years, Nigeria remained heavily dependent on imported petroleum products even though it owns some of Africa's largest refineries on paper.
NNPC Group Chief Executive Officer, Bashir Ojulari
Recent disclosures showed that trillions of Naira were spent on refinery rehabilitation and maintenance between 2023 and 2024 alone. Despite the spending, many of the facilities remained unable to operate efficiently or generate sustainable profits. The situation has raised serious questions about how public funds were managed and whether Nigerians received value for money.
However, successive governments have announced rehabilitation projects, organised commissioning ceremonies and promised that the facilities would soon operate at full capacity. However, many of those promises have failed to translate into lasting results.
The controversy took another turn with investigations involving former NNPC Group Chief Executive Officer, Mele Kyari, and some former top officials of the company. In 2025, the Economic and Financial Crimes Commission (EFCC) questioned Kyari over allegations linked to funds spent on refinery rehabilitation and maintenance projects. Reports also indicated that the investigations covered billions of dollars allocated to refinery upgrades.
Yet many Nigerians remain doubtful that the investigations will lead to meaningful consequences because the country has witnessed several high-profile corruption probes in the past that generated public attention but ended without clear outcomes. As a result, public confidence in the accountability process remains low.
The divisions became even more obvious this week during deliberations at the Senate when members of the Senate Public Accounts Committee were divided over how to handle the ongoing probe involving Kyari.
While some senators argued that Kyari should be compelled to appear before the committee and answer questions about alleged discrepancies in NNPC's financial records, others called for caution. They cited reports that the former NNPC chief was receiving medical treatment abroad and should be given more time.
Rather than speaking with one voice, lawmakers appeared split on how to pursue one of the country's most significant investigations. Although the committee eventually issued an arrest warrant, the debate left many Nigerians wondering whether political interests were once again getting in the way of accountability.
While some political leaders demand a thorough investigation into NNPC's activities, others warn against rushing to conclusions. This has created mixed signals and weakened public trust in oversight institutions.
Questions have repeatedly been raised about under-remittances, outstanding liabilities and disputed financial obligations. Even after the company was transformed into a limited liability company under the Petroleum Industry Act, concerns about transparency did not disappear.
Investors are usually attracted to environments where policies are stable, regulations are predictable and institutions are trusted. Unfortunately, the controversies surrounding NNPC have often created the opposite impression. Corruption allegations, management changes, unresolved investigations and policy inconsistencies have made investment decisions more difficult.
Sadly, despite years of spending on rehabilitation projects, NNPC is still searching for investors and technical partners to help revive some of the facilities. However, attracting serious investors is becoming increasingly difficult. Potential partners naturally want assurances that projects will be managed efficiently and transparently before committing billions of dollars.
The challenge facing NNPC today is about its credibility, as the company remains too important to fail. It controls strategic assets, supports government finances and plays a critical role in Nigeria's energy security. If properly managed, NNPC could become a driver of industrial growth, job creation and economic development. However, if the current challenges persist, it could continue to drain public resources and discourage investment.
The story of NNPC since the return of democracy is therefore more than a story about oil. It is a story about weak institutions, poor accountability and missed opportunities. It is a story of reforms announced but not fully implemented, investigations launched but rarely concluded, and billions of dollars spent with little to show for it.
The company's future may depend less on appointing new leaders and more on building strong institutions that can enforce transparency and accountability regardless of who is in charge.
Until that happens, NNPC may continue fighting the same battles that have defined much of its history — corruption allegations, failed projects, political interference, investor scepticism and public distrust.
For many Nigerians, the question is no longer whether NNPC can be reformed. The real question is whether the country has the political will to finally break a cycle that has lasted for more than 25 years.
