Nigerian National Petroleum Corporation (NNPC)

NNPC shows no sign or capability of climate change oversight. It has not established an incentive scheme supporting climate-related targets and does not demonstrate a commitment to decouple management incentives from fossil fuel growth. Some projects within the Renewable Energy Division of NNPC are relevant to a low-carbon transition. For example, NNPC plans to develop solar, wind and waste energy, on-grid and off-grid solar energy photovoltaic technology as well as biofuels from selected agricultural crops. However, there is no evidence that a formal low-carbon transition plan has been implemented by the company to support these projects.

NNPC has not publicly disclosed any commitments to reduce emissions. The company should develop ambitious scope 1, 2 and 3 emissions intensity targets that drive its business strategy and demonstrate the company’s intent to align with its 1.5°C pathway.

NNPC’s oil and gas extraction volumes have increased by around 10% between 2014 and 2019, with a smaller proportion of less emissions-intensive oil extraction in the overall fuel mix (50% in 2019 as opposed to 56% in 2014) from Nigeria. This has resulted in an upward emissions intensity trend for NNPC’s oil and gas operations. If the company were to continue on this trend, it would diverge even further from its 1.5°C pathway, which requires an annual decrease of close to 10% until 2024.

The company’s share of gas within its sold product portfolio has increased by 10% between 2014 and 2019. As gas has a lower in-use combustion factor, this has resulted in a decreasing trend in NNPC’s scope 1, 2 and 3 emissions intensity. However, even if this trend is a step in the right direction, NNPC would still need to decrease the emissions intensity of its sold product portfolio by nearly 4% every year from 2019 onwards to realign with its 1.5°C pathway by 2024.

NNPC intends to develop solar, wind and waste energy, on-grid and off-grid solar energy photovoltaic technology as well as biofuels from selected agricultural crops. However, NNPC does not have any emissions reduction targets or other low-carbon commitments.

NNPC does not have a low-carbon transition plan.

There is no indication that NNPC is allocating capital expenditure (CapEx) or investing in research and development to deploy technologies to achieve emissions reductions and mitigate climate change.

Between 2014 and 2019, NNPC’s scope 1, 2 and 3 emissions intensity has decreased, mainly driven by an increasing share of gas in the company’s sold product portfolio. However, this decrease is not sufficient for the company to be aligned with its 1.5°C pathway.

The absence of near- and long-term emissions reduction targets and detailed plans for developing low-carbon business activities, as well as involvement in serious recent environmental controversies, suggest NNPC is neither ready nor committed to the low-carbon transition.