Epstein Files Drag Nigeria’s Oil Sector Into Global Spotlight as NNPC Risks Scuttle Deals
- Jeffrey Epstein backed out of trading Nigerian crude due to fears of fraud linked to NNPCL
- Allegations of opaque practices and unmet revenue obligations continue to plague Nigeria's oil sector
- Dangote Refinery is reshaping Nigeria's energy landscape, emphasising transparency and local refining capabilities
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Newly released court documents linked to the late American financier Jeffrey Epstein have unexpectedly pulled Nigeria’s oil industry into a global conversation about risk, trust and reputation.
The files show that Epstein once explored trading Nigerian crude oil but ultimately backed out, citing fears of fraud tied to Nigeria’s state oil company, the Nigerian National Petroleum Company Limited (NNPCL).
Source: Twitter
While the revelation is not an indictment, it underscores how deep-seated concerns about governance in Nigeria’s oil sector have long shaped foreign perceptions, even among controversial global financiers.
Emails reveal interest, then a sudden retreat
According to the documents, Epstein exchanged emails in 2010 with a contact identified as David Stern, discussing the mechanics of lifting Nigerian crude and engaging with NNPCL. At first, the opportunity appeared commercially attractive.
Nigeria’s crude blends are among the most sought-after globally, and trading margins can be lucrative.
However, Epstein abruptly reconsidered. In the correspondence, he reportedly expressed fears of being cheated and chose to walk away from the potential deal. The irony is striking.
Epstein, later exposed for elaborate schemes of deception, still viewed Nigeria’s oil sector as too risky to trust.
NNPCL’s long shadow of controversy
Epstein’s hesitation mirrors decades of allegations surrounding NNPCL. The company has repeatedly been accused of opaque accounting practices and failing to remit oil revenues to the federation account. Multiple audits have flagged massive discrepancies over the years.
A 2016 audit pointed to about $16 billion in unpaid revenues. Other reports highlighted at least $1.48 billion in unaccounted funds.
More recent investigations in 2025 cited over ₦210 trillion, roughly $153 billion, in unexplained revenue flows, figures that have continued to erode investor confidence.
Nigeria’s state-owned refineries have also remained largely non-functional despite billions of dollars spent on turnaround maintenance. Critics point to inflated contracts, weak oversight, and rampant oil theft.
Production hubs such as Bonny have suffered repeated shutdowns due to vandalism, while past officials have faced bribery and money laundering allegations abroad.
The 2022 restructuring of NNPC into a limited liability company under the Petroleum Industry Act was meant to usher in a commercial, transparent era. Yet, for many observers, systemic problems remain unresolved.
Dangote Refinery signals a different future
In sharp contrast, the Dangote Petroleum Refinery is redefining Nigeria’s place in the global energy market.
The $20 billion facility, with a capacity of 650,000 barrels per day, has begun exporting diesel and aviation fuel to Europe and gasoline to the United States, all meeting Euro V standards.
Local refining has slashed Nigeria’s petrol imports to their lowest levels since 2017, easing pressure on foreign exchange and disrupting a long-standing crude-for-gasoline trade that once benefited European refiners to the tune of about $17 billion annually.
Dangote is also expanding its ambitions. Its petroleum, fertiliser, and cement subsidiaries recently signed expanded gas supply agreements with NNPCL, securing feedstock to increase output.
These deals align with Nigeria’s target to raise gas production to 10 billion cubic feet per day by 2027 and attract over $60 billion in gas investments by 2030.
A tale of two oil narratives
The Epstein files and Dangote’s rise tell a revealing story.
While NNPCL continues to battle a decades-long credibility deficit, private-sector-led projects like Dangote’s are showing how transparency, scale and efficiency can reposition Nigeria on the global energy map.
Source: UGC
For investors watching closely, the contrast could not be clearer.
NNPC shatters 36-year barrier with record 355,000bpd output
Legit.ng earlier reported that Nigeria’s upstream sector received a major boost on December 1, 2025, when NNPC E&P Limited (NEPL), the upstream arm of NNPC Limited, reached a record-breaking 355,000 barrels of oil per day.
It marks the company’s highest daily output since 1989 and signals a powerful turnaround for the country’s energy industry.
The achievement stands as a landmark moment for NEPL, reflecting years of internal reforms focused on discipline, efficiency and smarter operational delivery.
Source: Legit.ng
