President Bola Tinubu has been advised to reduce the state’s stake in the oil and gas sector to raise up to $17 billion to boost economic growth during his four-year term, a policy document showed.
The proposals, drawn up by Tinubu’s policy advisory team and first reported by Nigerian media at the weekend, would represent a major shake-up of the sector that has been Nigeria’s economic lifeblood since the 1960s.
Under the plans, the state-controlled Nigerian National Petroleum Corporation Ltd. (NNPC) would sell part of its stakes in joint ventures it operates with oil majors.
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The document finalized in May and seen by Reuters says NNPC 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 the 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.
