Business
Ojulari: How NNPC’s energy security role is anchoring economic stability under Tinubu
By Solomon Nnamdi
In an economy where oil and gas revenues still play an outsized role in fiscal planning and foreign exchange earnings, the concept of energy security extends far beyond pipelines and production platforms. For Nigeria, energy security is inseparable from economic stability. Eight months into his tenure as Group Chief Executive Officer of NNPC Limited, Bayo Ojulari has increasingly framed the company’s mission in these broader terms—positioning NNPC not only as an energy producer, but as a custodian of national revenue flows.
This framing has influenced how NNPC approaches diversification, profitability and operational discipline. Under Ojulari, energy security has become both a strategic objective and a risk-management tool, designed to protect earnings while Nigeria navigates a volatile global environment.
From barrels to balance sheets
Historically, discussions about energy security in Nigeria focused on production volumes—how many barrels were pumped or exported. Under Ojulari’s leadership, the conversation has evolved to include reliability, predictability and revenue integrity.
This shift reflects the lessons of recent years, when high global oil prices failed to translate into fiscal relief due to theft, operational disruptions and inefficiencies. By the time Ojulari assumed office, measures to address these gaps were already underway. His role has been to consolidate them and embed revenue protection into
NNPC’s commercial strategy
The result has been a more direct link between operational outcomes and financial performance, reinforcing NNPC’s accountability as a commercial entity.
Securing the value chain
Revenue protection under Ojulari extends across the entire value chain—from production and evacuation to sales and remittance. The restoration of near-100 per cent availability on major crude pipelines has been central to this effort, ensuring that produced barrels are reliably delivered to export terminals.
But Ojulari’s approach goes further. By strengthening internal controls, improving reporting discipline and aligning subsidiaries around clear performance metrics, NNPC has reduced leakage not only in physical terms, but also in financial processes.
Monthly financial disclosures, sustained under Ojulari’s leadership, play a critical role in this framework. They provide early warning signals for underperformance and enable timely corrective action—an essential capability in a revenue-dependent economy.
Energy security as investor assurance
For investors, energy security is synonymous with certainty. Projects require confidence that production will not be disrupted, contracts will be honoured and revenues will be realised.
Under Ojulari, NNPC has worked to reinforce this confidence through a combination of operational stability and transparent communication. By maintaining consistent engagement with Joint Venture and Production Sharing Contract partners, the company has signalled that Nigeria is serious about protecting investments.
This assurance has tangible benefits. Improved security conditions and clearer governance have encouraged renewed capital inflows into upstream and midstream projects, supporting production growth and diversification.
Diversification as risk mitigation
Ojulari’s emphasis on diversification is closely tied to revenue protection. By expanding NNPC’s portfolio into gas infrastructure, downstream services and regional energy projects, the company reduces its exposure to any single revenue stream.
Gas, in particular, offers longer-term contracts and domestic utilisation opportunities that can stabilise earnings. Downstream infrastructure services provide fee-based income less sensitive to commodity price swings. Regional projects create new markets and geopolitical leverage.
Together, these elements form a diversified revenue base that strengthens energy security in financial terms.
Supporting national fiscal planning
NNPC’s improved revenue performance has had direct implications for national fiscal planning. With stronger remittances and clearer reporting, government authorities can plan budgets with greater confidence.
Between January and April 2025 alone, NNPC remitted trillions of naira to the federation, reflecting both improved production reliability and enhanced revenue capture. For an economy facing multiple pressures, this predictability is invaluable.
Ojulari has consistently emphasised collaboration with fiscal authorities, recognising that NNPC’s performance is intertwined with broader economic management.
Foreign exchange stability
Energy security also underpins Nigeria’s foreign exchange position. Reliable crude exports and gas revenues support forex inflows, helping to stabilise the currency and finance imports.
By consolidating gains against theft and operational disruptions, Ojulari’s leadership has contributed indirectly to forex stability. While global factors continue to influence currency dynamics, the physical delivery of energy exports remains a critical variable.
In this context, revenue protection is not an abstract corporate goal, but a macroeconomic necessity.
Balancing commercial and national roles
As a commercial entity wholly owned by the Federal Government, NNPC occupies a unique space. It must balance profit maximisation with national responsibilities—a tension Ojulari has navigated through clarity of roles.
By framing energy security as aligned with commercial success, he has reduced this tension. Protecting revenue flows benefits both NNPC’s balance sheet and the national treasury, creating a shared incentive structure.
This alignment has helped streamline decision-making and reduce conflict between corporate and public objectives.
Learning from the past
Nigeria’s history offers sobering lessons about the cost of neglecting energy security. Periods of high production and prices have often been undermined by inefficiencies, leakages and governance gaps.
Ojulari’s leadership reflects an awareness of these lessons. By focusing on consolidation rather than reinvention, he has sought to ensure that recent gains are not squandered.
A platform for long-term resilience
Energy security is not a destination, but a continuous process. Threats evolve, markets shift and infrastructure ages.
Eight months into his tenure, Bayo Ojulari has laid the groundwork for resilience by embedding revenue protection into NNPC’s operations and diversification strategy. His approach recognises that in a complex energy landscape, stability itself is a strategic asset.
As Nigeria looks ahead to 2026 and beyond, NNPC’s ability to safeguard revenues will remain central to economic stability. Under Ojulari, that responsibility is being approached with discipline, continuity and a clear sense of national purpose.
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