President Bola Tinubu has been advised to reduce the federal government’s stake in the oil and gas sector in order to raise raise $17 billion to drive economic growth in his first four-year term, a policy document showed.
The proposals, drawn up by the president’s policy advisory team, would represent a major shake-up of the sector that has been Nigeria’s economic lifeblood since the 1960s.
Under the plan, the state-controlled Nigerian National Petroleum Corporation Ltd (NNPCL) would sell part of its stakes in joint ventures it operates with oil majors.
The document finalized in May and seen by Reuters says NNPCL would “form global strategic partnerships with coventurers (and) sell down interests in JVs to a minority position and develop an operating model that eliminates cash calls”.
The advisory team also recommends stripping NNPC of any policy-making role for the energy sector, as well as consolidating Nigeria’s multiple energy-related regulators into a single body.
If Tinubu adopts the proposals, a substantial portion of the Petroleum Industry Act (PIA) would have to be amended by the new National Assembly, which will be inaugurated on Tuesday following elections in February.
