Energy industry experts and stakeholders have expressed divergent views over reported plans by the Nigerian National Petroleum Company Limited to divest its stakes in multinational oil firms operating across the country.

Earlier, Reuters reported that NNPC Limited is planning to sell stakes in some of its oil and gas assets and has already invited bids, citing an invitation document it sighted on Monday.

According to the report, NNPC Limited owns some oil and gas assets outright, while others are held in partnership with international oil companies such as Shell, Chevron, Eni and TotalEnergies.

Reuters noted that the invitation document did not disclose the size of the stakes being offered for sale or how much the company intends to raise from the divestment exercise.

The report added that NNPC Limited did not respond to requests for comment on the reported plans.

Some analysts aligned with the reported position, citing relevant provisions of the Petroleum Industry Act, which stipulate that the former state-owned corporation now operates as a limited liability company and therefore reserves the right to take independent business decisions.

Reacting to the development, civil rights activist and Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Musa Rafsanjani, expressed strong opposition to the proposed sale of the assets.

Rafsanjani argued that a lack of transparency has historically characterised government divestment and sale of public assets, a process he said has often been clouded by political corruption.

He stated that assets sold under such circumstances have, in several cases, been traced to political associates, rather than subjected to open and competitive processes.

According to him, past experiences show that public assets are frequently undervalued and transferred to politically connected individuals, without generating meaningful value for the wider economy.

“We always reject such plans that are lacking in transparency and usually carried out in questionable circumstances. These are public assets and should be protected and treated fairly to ensure sustainable economic value to the public and not sold under any circumstances that are unacceptable,” he articulated.

Offering a different perspective, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said NNPC Limited, under existing laws, has the right to take calculated business decisions, including selling part of its assets or equity holdings.

Yusuf noted that such decisions could help the company generate liquidity for operations and investments rather than resorting to borrowing.

Meanwhile, development and energy economist at Adeleke University, Professor Tayo Bello, described the proposed divestment as a welcome development if properly executed.

Speaking to LEADERSHIP, Bello said the proposal aligns with global best practices in the oil and gas industry, particularly from the standpoint of portfolio optimisation.

He explained that “NNPC should focus on assets where it has comparative advantage and free up capital tied down in underperforming fields. However, the credibility of the process is critical. Investors will only come in if pricing, governance and regulatory approvals are transparent.”

Bello further stressed that proceeds from any asset sale should be clearly ring-fenced for strategic reinvestment.

“If the funds are used to reduce debt, invest in gas infrastructure or boost production, the macroeconomic impact could be positive. Otherwise, it risks becoming a short-term fiscal fix,” he said.

Also commenting on the issue, energy economist and industry analyst, Dr Kayode Adeniran, described the reported move as a reflection of the structural pressures confronting Nigeria’s oil sector.

He said Nigeria is grappling with declining production, rising operational costs and diminishing interest from international oil companies, adding that divestment could attract technically capable operators.

“Nigeria is struggling with production, rising costs and reduced international oil company interest. Selling stakes could attract technically capable operators, especially for marginal fields that NNPC or IOCs are no longer prioritising,” Adeniran said.

He, however, cautioned that asset sales alone would not resolve the deeper challenges facing the sector.

“Without addressing security challenges, regulatory bottlenecks and contract sanctity, new investors may still hesitate. The divestment must be part of a broader reform agenda, not a standalone transaction,” he added.

As a limited liability company, NNPC Limited is empowered to diversify its business portfolio, expand its operations and raise funds through asset sales to support growth and operational efficiency.

The company had previously outlined plans to sell at least 25 per cent of the equity it holds in selected oil and gas fields, either through outright divestments or stake reductions, as part of a broader portfolio optimisation strategy.

That draft divestment plan, however, was opposed by oil sector unions at the time.

According to the invitation document referenced in the Reuters report, which was circulated late last week, interested bidders are required to register online by January 10.

The document stated that pre-screening would follow the registration process, after which qualified bidders would be granted access to a secure virtual data room.

It added that prequalification would be based on technical and financial capacity, followed by document evaluation, negotiations and regulatory approvals.

LEADERSHIP further reported that the Petroleum Industry Act of 2021 mandated the transformation of the Nigerian National Petroleum Corporation into the Nigerian National Petroleum Company Limited.

Under the Act, NNPC Limited now operates as a commercially driven limited liability company governed by the Companies and Allied Matters Act.