By Abbas Nazil
The Nigerian National Petroleum Corporation Limited (NNPCL) may have to realign its investment strategy by shifting focus from fossil fuels to renewable energy sources in order to meet long-term energy demands and remain competitive in the evolving global energy market.
Energy law expert Dr. Ayodele Oni, and Economist Dr. Ayo Teriba, suggested this shift to enhance its capacity to discharge its constitutional mandate I’m the Nigerian economy.
The call for shift comes amid increasing concerns over the volatility of oil prices and the global transition toward cleaner energy.
Economist Dr. Ayo Teriba stressed that the energy sector worldwide is undergoing a fundamental transformation, with many leading oil-producing nations already diversifying their portfolios to include renewable energy.
He noted that even Saudi Arabia’s state-owned oil giant, Aramco, has made significant investments in renewables, signaling a clear shift in global energy dynamics.
According to him, Nigeria cannot afford to be left behind if it wants to sustain economic growth and energy security.
Dr. Teriba argued that relying heavily on crude oil is no longer sustainable, especially in light of declining global oil prices and trade-related uncertainties that have plagued the commodity market.
With oil prices falling below $60 per barrel in recent years, he warned that the ambitious targets set for NNPCL may be difficult to achieve unless the corporation embraces energy diversification.
He emphasized that renewable energy is not only the future but also a more stable and environmentally friendly investment in the long term.
Supporting this perspective, energy law expert Dr. Ayodele Oni, acknowledged that while the government’s targets for the oil and gas sector are ambitious, they are attainable with the right policy and investment environment.
He recommended enhanced security in oil-producing regions to curb vandalism, which has consistently disrupted production and deterred potential investors.
Furthermore, he advocated for a stable regulatory framework that encourages private sector participation in both traditional and renewable energy sectors.
Dr. Oni also pointed out that good governance, transparency, and efficient allocation of resources are crucial for the development of the energy industry.
He emphasized the need to eliminate bureaucratic challenges, especially those affecting investors interested in domestic refining and renewable energy projects.
The recently reconstituted NNPCL board, headed by Group Chief Executive Officer Bashir Bayo Ojulari and non-executive chairman Ahmadu Musa Kida, has been tasked with conducting a strategic portfolio review to align with national value-maximization objectives.
In 2024, NNPCL secured $17 billion in new investments. The federal government aims to grow this to $30 billion by 2027 and $60 billion by 2030.
However, experts warn that these goals may be unattainable if the corporation does not pivot toward cleaner and more sustainable energy investments.