LAGOS — Energy activist Dan Oye has criticised the Federal Government for celebrating energy sector reforms while ignoring what he calls the elephant in the room: NNPC Limited’s N30 trillion debt burden. Vanguard reported the critique on Monday. Oye said the debt makes most reform narratives misleading and premature.
NNPC Limited was commercialised under the Petroleum Industry Act 2021 and removed from direct government funding. However, Oye said the corporation’s accumulated debts, owed to contractors, suppliers, and lenders, represent a structural problem that undermines the entire energy sector’s viability.
“You cannot celebrate an energy reform while the national oil company is carrying N30 trillion in debt. That debt affects its capacity to invest, to maintain infrastructure, and to operate as a genuine commercial entity,” Oye said in an interview.
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NNPC’s Financial Position
NNPC has acknowledged its debt burden in previous public statements but has projected confidence in its ability to service obligations through improved operational efficiency and oil revenue growth. However, critics like Oye say the size of the debt requires a more urgent and transparent restructuring plan.
The debt affects multiple categories, including unpaid dividends to the federal government, contractor arrears, and upstream joint venture funding obligations. Each category affects Nigeria’s energy investment climate differently, but all reduce the sector’s capacity to function optimally.
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The government said its energy reforms, including the fuel subsidy removal, refinery rehabilitation, and the Dangote Refinery’s commercial operations, represent genuine structural improvements. It argues that the NNPC debt challenge predates the current administration and is being addressed systematically.
