Nigeria’s oil sector is under renewed scrutiny as regulators move to end the practice of holding undeveloped petroleum assets, while a civil society group is pressing for an investigation into billions of naira allegedly spent on rebranding the state oil company.
The Socio-Economic Rights and Accountability Project (SERAP) said President Bola Tinubu should direct the attorney general and anti-corruption agencies to examine about N5.9 billion reportedly spent on transforming and rebranding the Nigerian National Petroleum Corporation (NNPC) into the Nigerian National Petroleum Company Limited (NNPCL). The call comes amid wider efforts to improve transparency and investor confidence in the petroleum industry following reforms under the Petroleum Industry Act (PIA), which overhauled regulatory institutions and commercialised the national oil company.
In an open letter dated March 14, 2026, SERAP raised concerns about whether due process was followed in awarding contracts for the rebranding exercise. The group urged the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to identify officials who authorised payments and contractors who received them, as well as to review the procurement process for compliance with public procurement laws and financial regulations.
According to reports cited by SERAP, N2.9 billion was charged as incorporation expenses from petroleum product proceeds, while another N2.9 billion was drawn against crude oil revenue via the National Petroleum Investment Management Services (NAPIMS). Combined, the reported expenditure totals roughly N5.9 billion.
“There ought to be full transparency and accountability regarding the reported N5.9 billion spent on rebranding NNPC to NNPCL,” SERAP deputy director Kolawole Oluwadare said. “Nigerians have the right to know who approved the expenditure, who received the money and whether due process was followed.”
The group said an investigation would determine whether the spending represented value for money and complied with transparency requirements governing public resources in the oil sector. It also noted that such a probe would demonstrate the government’s commitment to tackling corruption in a sector that generates the bulk of Nigeria’s export earnings and public revenue.
The PIA mandated the transformation of NNPC into a limited liability entity, fully owned by the federal government but run commercially. SERAP highlighted constitutional provisions and international anti-corruption conventions that require transparency and accountability in the management of public funds and warned that failure to act could prompt legal steps to compel an investigation.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the era of companies holding oil prospecting licences without developing them has ended. Speaking in Abuja on March 13, 2026, during a meeting with Sierra Leonean officials, the commission said the PIA now requires operators to commence exploration or relinquish blocks, a provision known as “drill or drop.”
Under past regimes, some companies held licences for decades without drilling, effectively locking up productive assets. The regulator said the new framework reduces uncertainty, expands available assets, and has already boosted interest in licensing rounds. The current 2025 licensing exercise offers 50 oil blocks, with prequalification results showing strong investor demand despite limits of two blocks per bidder or consortium.
To reinforce confidence, NUPRC engaged an independent audit firm to validate the bid evaluation system. The results will be published to ensure transparency. Officials from Sierra Leone said their visit aimed to learn from Nigeria’s regulatory experience and explore cooperation, including a potential memorandum of understanding on technical and regulatory collaboration.
These developments illustrate the dual pressures facing Nigeria’s oil industry: improving governance and transparency while attracting fresh investment to unlock dormant resources. For Africa’s largest oil producer, balancing these priorities is central to restoring investor confidence and boosting production.