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By Adewale Sanyaolu
At a time the global community is pushing for increased sustainability efforts by oil and gas producing companies, the African Energy Council (AEC), has raised concerns over the 38.27MtCO2e emission baseline of the Nigerian National Petroleum Company (NNPC) Limited.
AEC is an independent think tank of experts that work across the African energy landscape with the purpose of creating a better energy future for the African continent and society by accelerating a just energy transition to net-zero.
The Council in an analysis of NNPC Limited financial performance for the full year ended 2024, where it recorded a record breaking N5.4 trillion Profit After Tax and N15.9 trillion revenue to the federal government, warned that celebrating financial metrics alone is insufficient.
The Council, while commending NNPC Limited for the 18 per cent production uplift, lamented the 38.27MtCO2e emission baseline, 90 per cent from upstream, which, it said, reveals a significant environmental liability.
“Rhetoric must shift to radical, immediate operational stability and verifiable emissions abatement beyond the planned CNG network. Focus must pivot from profit figures to aggressive verifiable emission reduction.”
AEC added that the environmental liability exposed in the report, driven heavily by core production activities, reveals a critical imbalance.
The Council, however, demanded that focus must immediately shift from profit fanfare to aggressive, radical action on operational stability and verifiable emissions abatement because Nigeria ‘s energy future depends on it.
However, NNPC Limited, in defense of its sustainability efforts as outlined on its website, said in a rapidly changing environment, it has committed itself to operating in a sustainable manner, as a responsible business entity, ensuring that our activities continue to be carried out in line with the principles of economic, social and environmental development.
“We will ensure the provision of affordable, clean and efficient energy options to our stakeholders comprising of over 200 million Nigerians, under a just and equitable transition. As such, our strategies for decarbonisation and net zero emissions will be driven by the increased role of gas in our portfolio.”
NNPC Limited added that its guiding principles are the United Nations Sustainable Development Goals, particularly SDG7 (to ensure access to affordable, reliable, sustainable and modern energy for all); and its commitments to implementation of Nigeria’s Nationally Determined Contribution under the UNFCCC Paris Accord (reduce emissions by 20 per cent unconditionally and 45 per cent conditionally by 2030, end gas flaring by 2030 and ensure 30 per cent energy efficiency by 2030).
“Other principles underpinning our sustainability include the PIA Act which provides for NNPC Ltd to engage in renewable energy business; and the Nigerian Climate Act for mainstreaming climate change actions to achieve low emissions, inclusive green growth and sustainable economic development.”
As part of broader plans to ensure access to cleaner energy, NNPC Limited is accelerating its clean energy transition with plans to deploy 500 Compressed Natural Gas (CNG)-powered trucks and 50 cascades for the nationwide distribution of PMS, ATK, LPG, and CNG by 2026.
This is in addition to an expanded roll-out strategy that will see the company establish 151 CNG stations across Nigeria by 2028, expanding significantly from the 12 stations already commissioned in Abuja and Lagos.
