Nigeria: Production Stays Below 1.7 Million Barrels as Oil Professionals Demand Probe

Nigeria's crude oil production has stayed below about 1.7 million barrels per day more than one year after a change in leadership at the Nigerian National Petroleum Company Limited, prompting oil and gas professionals to ask the Federal Government to begin an independent investigation into the NNPC and the Nigerian Upstream Petroleum Regulatory Commission.

The group said the probe should examine production performance, licensing activities and contract awards following allegations surrounding the two institutions.

The demand follows continued discussion on crude oil output, oil block licensing and the management of petroleum assets.

The professionals said confidence in the industry depends on transparent processes and institutions that earn public trust.

They also noted that similar requests for reviews of licensing exercises and bid rounds have emerged from other quarters.

Production performance under renewed scrutiny

On Saturday, in a statement signed by its convener, Ayodele Momoh, the forum said Nigeria's oil industry is again facing questions over policy performance, contract decisions and transactions involving senior officials in the sector.

The group recalled that former NNPC Group Chief Executive Officer Mele Kyari left office after allegations of poor performance, corruption, self dealing and failure to increase crude oil production above the commonly cited level of about 1.7 million barrels per day.

It said the production picture has not improved about one and a half years after his successor, Bayo Ojulari, assumed office.

The forum stated that crude oil output is still below the same level and said allegations over transactions and performance have returned.

The professionals said national oil assets should be managed through transparent procedures, with documented requirements and equal opportunities for every qualified participant.

They maintained that leadership accountability should cover present outcomes, including crude oil production, licensing integrity and contract awards.

Licensing process draws fresh questions

The forum also asked investigators to examine the marginal fields licensing process. It referred to reports alleging insider influence, uneven application of rules and overlaps in oil block allocations.

It alleged that allies and associates of Ojulari received favourable blocks through insider knowledge connected to people within his personal network, including one of his wives, who it identified as a senior official at the NUPRC.

The statement also referred to reports that some licensed blocks overlapped with interests already linked to people described as close to the President.

It specifically mentioned OML 64 and OML 98, saying their early allocations were connected to companies associated with friends and allies of Ojulari.

The professionals therefore requested the removal of Bayo Ojulari from his leadership position at the NNPC and Meyiwa Eyesan from her office at the NUPRC.

The group said Ojulari has reportedly maintained that his decisions on licensing and related activities were made with the knowledge of the President.

It, however, stated that public accountability requires more than claims of political awareness where outcomes appear to favour particular networks.

The forum asked the Presidency and relevant oversight agencies to examine the allegations objectively and ensure transparent reviews of procurement, licensing and regulatory oversight.

It stated that whether the allegations are confirmed through official investigations or remain disputed claims, they have already increased pressure on the industry's institutions.

The professionals said Nigeria's oil and gas sector needs institutions that operate with professionalism, accountability and independence to sustain investor confidence.

They also asked relevant authorities to handle the issues quickly and transparently, saying the industry requires credible leadership, accountable governance and measurable production results.