NNPC debt clearance milestone boosts Nigeria’s oil sector as Seplat CEO hails new financial discipline and alignment with local producers at NOG 2025

The NNPC debt clearance milestone has sparked a significant change in Nigeria’s energy sector, with Seplat Energy Plc’s Chief Executive Officer, Roger Brown, describing the development as “a game changer” for the future of indigenous oil production.

Also read: Nigeria power tariff crisis threatens NNPC plants, FG moves to intervene

Speaking during a panel at the 2025 Nigerian Oil and Gas conference in Abuja, Brown said the Nigerian National Petroleum Company Limited (NNPCL) had eliminated its longstanding financial backlog and now shows a refreshing level of fiscal responsibility and alignment.

“Yesterday, you heard from the GCEO of NNPC talking about what NNPC is doing. One of the big things is cash flows and ensuring that,” he stated.

“When we listed in 2014, we raised \$500 million. And NNPC owed us \$550 million—more than we raised. That is a thing of the past.”

Brown noted that this change has significantly improved operational partnerships, especially for domestic oil producers.

According to him, NNPCL now pays on time and works closely with industry players, shifting from an era of debt to one of collaboration.

“Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership. And that’s what the indigenous players are bringing to the party here,” he added.

Previously, the NNPC was mired in billions of dollars in debt. The burden choked operational output, delayed payment schedules, and led to a collapse in confidence across local and global stakeholders.

In 2024 alone, suppliers withheld petroleum products due to a \$6 billion unpaid backlog, crippling supply chains.

Brown linked Seplat’s successful 2024 acquisition of ExxonMobil’s onshore assets to this new era of financial accountability.

“So when we completed the Mobil acquisition last year, we were ready for it. The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term,” he said.

He recalled a time when setbacks tested Seplat’s resilience. “When things go wrong, which they inevitably will, we don’t panic. In 2016, our pipeline was shut down.

In 2017, we didn’t run away. You can’t run from your own home. That’s the mindset we bring to these prolific assets,” Brown emphasised.

Seplat currently operates eight out of 11 blocks across Nigeria’s energy regions, with a heightened focus on expanding domestic gas capabilities and boosting exports.

“We are already supplying NLNG. But we’re also preparing for LNG projects under development, and we’re investing heavily in domestic gas to meet local demand,” he said.

Also speaking on the panel, Dr Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, echoed Brown’s sentiment and credited the NNPCL’s restructuring.

“This is the first time we have a national energy company focused on production targets, not distracted by unrelated mandates. It’s staffed by the right people in the right places,” Irune said.

Irune noted that NNPC’s commitment now includes tackling rising security costs and streamlining processes that were once burdensome.

“Charity begins at home, and NNPC has begun that charity. They are tackling security, OPEX, and even streamlining contracting processes. The rest of us must align.”

He stressed the rising importance of domestic operators in driving upstream growth. “Independents have moved from the base of the pyramid to leading Nigeria’s upstream strategy.

With a reliable partner like NNPCL, the future is very achievable,” he concluded.

Also read: Nigeria power tariff crisis threatens NNPC plants, FG moves to intervene

Meanwhile, Shell Nigeria’s Managing Director, Ronald Adams, announced that the Ubonga North oil project is expected to contribute 100,000 barrels of crude oil per day to Nigeria’s output by 2027, marking another sign of optimism for the sector.