The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has come under fire from Dele Oye, Chairman of the Alliance for Economic Research and Ethics LTD/GTE, who slammed the Federal Government's celebration of recent energy sector reforms. Oye argued that the figures touted by the government are illusory, while average Nigerians continue to grapple with expensive fuel, unreliable electricity, and rising production costs.
NECA Highlights Unmet Benefits
Similarly, the Nigeria Employers' Consultative Association (NECA) stated that businesses across the country have yet to fully experience the expected benefits of the economic reforms. Oye was responding to a 13-page report from the office of the Special Adviser to the President on Energy, titled 'Nigeria's Energy Sector Reforms: A Three-Year Review (2023–2026),' which highlighted progress under President Bola Tinubu. Oye argued that the report's claims fail to reflect the economic realities faced by households and the productive sector.
NNPCL Debt Surge
Oye pointed to a sharp deterioration in the financial position of the Nigerian National Petroleum Company Limited (NNPC), noting that its internal debt rose by about 70 percent to approximately N30.3 trillion. He stated that this level of indebtedness raises serious concerns about efficiency, governance, and the sustainability of ongoing reforms in the energy value chain.
Audited financial statements for NNPCL's 2024 fiscal year, released in early 2026, revealed that intra-company debts among NNPCL's subsidiaries surged by 70.4 percent in a single year, from N17.78 trillion in 2023 to N30.3 trillion as of December 31, 2024. The biggest debtors are the state's own refineries: the Port Harcourt Refining Company (PHRC) owed N4.22 trillion; the Kaduna Refining and Petrochemical Company (KRPC) owed N2.39 trillion; and the Warri Refining and Petrochemical Company (WRPC) owed N2.06 trillion. These facilities have absorbed billions of dollars in rehabilitation spending and remain largely non-functional.
NNPCL's trading arm, NNPC Trading SA, owed the parent company N19.15 trillion, more than double the N8.57 trillion recorded the previous year. As Wumi Iledare, Professor Emeritus of Petroleum Economics, observed: 'A 70 percent jump in one year is a clear warning sign. It means inefficiencies are growing faster than reforms.'
Power Sector Failures
Oye also drew attention to the continued dependence of businesses on self-generated power, stating that Nigerian companies spent an estimated N1.83 trillion on diesel within just two months. He said this reflects the persistent failure of the power sector to provide reliable electricity for industrial and commercial use.
NECA's Assessment
Director-General of NECA, Adewale-Smatt Oyerinde, while assessing the administration's economic performance in Abuja, acknowledged that the removal of fuel subsidy and the liberalization of the foreign exchange market reflected the government's commitment to market-driven economic policies and improved transparency across sectors. He said the reforms enhanced fuel availability, reduced recurring supply disruptions, and signaled policy consistency to both local and foreign investors.
However, Oyerinde noted that while there are indications of improved investor confidence, many domestic businesses, particularly Micro, Small and Medium Enterprises (MSMEs), continue to face operational challenges. The depreciation of the naira increased production costs, affected competitiveness, and heightened operational risks for many businesses.
'Many private sector operators have yet to experience the anticipated gains of the reforms as they continue to grapple with inflation, energy costs and exchange rate volatility,' he said. Oyerinde added that declining consumer purchasing power and rising production costs put pressure on businesses, with some firms adjusting investment plans and operations in response to prevailing economic conditions.
He advocated support for local production through patronage of made-in-Nigeria goods, infrastructure development, and improved security in key business and investment corridors.
