In a sector as complex and consequential as Nigeria’s oil and gas industry, few professionals have navigated its turbulent tides with the clarity, conviction, and impact of Engr. Johnson O. Awoyomi. A Certified Cost Engineer, reform strategist, author, and former Senior Technical Assistant (STA) to both the Group Managing Director (GMD) of NNPC and the Honourable Minister of Petroleum Resources, Engr. Awoyomi’s legacy is written not just in policy papers or boardroom memos, but in measurable transformations that have reshaped the nation’s energy landscape.
From leading the Efficiency and Transparency segment of the “Seven Big Wins” to engineering landmark directives that slashed Nigeria’s oil production costs from $32 to $15 per barrel and collapsed contracting timelines from 36 months to just 6, Awoyomi has worked at the nucleus of institutional reform. His fingerprints are evident in some of the most pivotal reforms that laid the groundwork for the Petroleum Industry Act (PIA), and his voice remains one of the most respected in conversations around cost governance, energy transition, and policy execution.
But beyond the accolades lies a deeper mission: to embed a culture of cost discipline, performance monitoring, and local knowledge within Nigeria’s petroleum sector. Through his authored works and years of mentorship, he has sought to equip the next generation of engineers and policymakers with the intellectual tools and ethical clarity to lead in an increasingly globalised and decarbonising world.
Engr. Johnson O. Awoyomi served as the Managing Director of NETCO, a subsidiary of NNPC, where he transformed the company from a loss of N1.76 billion in 2020 to a profit of N4.2 billion in 2021 through aggressive cost optimisation and operational restructuring. Before that, he held the role of Group General Manager of NNPC’s Engineering and Technology Division, where he developed and operationalised NNPC’s first-ever Historical Cost Database.
As Senior Technical Assistant (STA) to the Honourable Minister of Petroleum Resources and the GMD of NNPC (2015–2019), Engr. Awoyomi led the industry-wide reform to cut crude oil production costs from $32 to $15 per barrel and reduce contracting timelines from 36 months to 6. He was instrumental in crafting the “Seven Big Wins” agenda and contributed to policy designs that laid the foundation for the Petroleum Industry Act.
Since retiring in 2022, he now leads Cost Engineering and Project Controls Services Ltd, offering high-level consultancy and training to NNPC, NLNG, NCDMB, and other key players—a published author of several seminal books on energy economics and cost engineering, Engr. Awoyomi is a Fellow of NSE, NSChE, and AACE International. His enduring passion lies in capacity development, mentoring young professionals, and institutionalising efficiency across Nigeria’s energy sector.
In this wide-ranging interview with Valuechain, Engr. Awoyomi reflects on the reforms he helped champion, the challenges that continue to beset the industry, and his enduring vision for Nigeria’s energy future. He speaks not only as a technocrat but as a bridge between past reforms and future possibilities, a man who understands that real change is not in documents but in disciplined execution, data-backed policy, and leaders willing to tell the truth.
Looking back on your extensive career in Nigeria’s oil and gas industry, especially your roles as STA to both the GMD of NNPC and the Minister of Petroleum, what would you consider your most defining professional achievement?
First and foremost, I want to thank God for the grace given to me to serve as an STA (Senior Technical Assistant) to both the GMD of NNPC and the Minister of Petroleum (2015 – 2019). And secondly, I must say a ‘big-thank you’ to my boss, then and forever – Prof Dr Emmanauel Ibe Kachukwu, for allowing me to be his STA when he was the GMD of NNPC and Honourable Minister of Petroleum Resources, HMSPR for Nigeria.
Reflecting on my journey in Nigeria’s oil and gas industry, I’ve had the privilege of serving at the heart of some of the sector’s most transformative moments. However, if I had to identify my most defining professional achievement, it would be my role in driving the reform and implementation roadmap that eventually laid the groundwork for the Petroleum Industry Act (PIA). During the period, there are 4 STAs – Dr Tim Okon for Fiscal Policy, Engr Rabiu Suleiman for Downstream and Refineries, Mr Gbite Adeniji for Upstream and Gas Policy and myself– Engr Johnson Awoyomi for Efficiency and Transparency (E&T) – responsible for the delivery of the key mandates of E&T segments of the ‘Seven Fixes’ – which gave birth to the industry directives on Reduction of Crude Oil prices per barrel and Crashing the Contracting Cyscle in the industry.
I contributed to key restructuring efforts aimed at enhancing NNPC’s transparency and operational efficiency—efforts that culminated in the unbundling of the corporation’s subsidiaries and the push toward commercial viability. Behind the scenes, I also helped shape inter-agency coordination and drove the cost optimisation agenda of the HMSPR.
Ultimately, seeing the reforms that I was part of conceptualising come to life in policy and institutional restructuring has been deeply fulfilling. It was never about personal accolades; it was about helping to reposition Nigeria’s oil and gas sector as a modern, competitive, and transparent driver of national prosperity.
Specifically, below are some of the key achievements as an STA to the GMD and HMSPR:
Reduction of crude oil price per barrel and crashing of the contracting cycle:
As STA, E & T to the HMSPR – Prof Ibe Emmanuel Kachukwu (2015-2019), I was responsible for driving the Efficiency and Transparent segment of the 7Fixes as subsets of the E & T segments are: the Reduction of the Crude oil Price per barrel and the crashing of the Long Contracting Cycle in the oil and gas industry. Several engagements were held with the industry stakeholders to ascertain the significant causes of high crude oil production in Nigeria and why our contracting cycle is as long as 36 months. The outcomes of all these engagements and analyses with the E&T team are these two powerful deliverables:
- Directives on Reduction of Crude Oil Price from $32 to $15 per barrel and
- Directives on Crashing the Contracting from 36 months to not more than 6 Months.
These directives were signed off by the HMSPR and were dispatched to all the stakeholders for immediate compliance. The stakeholders include NNPCL, NCDMB, the former DPR (now NUPRC & NMDPRA), the IOCs (Shell, Chevron, ExxonMobil, Total, Agip, etc.), and the IPPGs (Independent Petroleum Producers Group, including Seplat and First E & P, etc.). These directives remain relevant both then and now. I recommend that the respective agencies and organisations access these directives within their systems for use as applicable. Additionally, I am available to provide copies upon request.
Monitoring and Compliance Committee of Directives
A Committee comprising representatives comprising members from the stakeholders – the NNPCL, the then DPR (now NUPRC and NMDPRA), the IOCs (comprising Shell, ExxonMobil, Chevron, Total, Agip, etc), the Ministry of Petroleum Resources, the IPPGs – Independent Petroleum Producers Group (Seplat, First E & P, etc), the NCDMB, etc., was set up by the HMSPR. I was made the Team Lead of the initiative.
Mode of Operation: The committee met monthly to review the performance of each stakeholder in relation to the Ministerial Directives on Crude Oil Price Reduction and the Crashing of the Long Contracting Cycle in the oil and gas industry, which served as benchmarks. We provided a monthly summary report on the compliance of IOCs and IPPGs with the directives (cost and contracting cycle) to the HMSPR.
Performance Management- Institution and operationalisation of the HMSPR Dashboard
The Performance Management Dashboard for Agencies of the MPR was developed to measure their respective targets against actual performance on a monthly basis. At the monthly performance review meeting with the HPSPR, each agency’s head will present their targets versus actuals to the HMSPR. During the meeting, each agency was thoroughly examined in terms of why they are falling behind in meeting their targets and what they require from the HMSPR to achieve their respective targets. It is a powerful tool that enabled the period of Prof Kachukwu as HMSPR to be a great success.
Cost Engineering Capacity Building Training Programs
Several Cost Engineering seminars and conferences were organised and attended by the staff of the Ministry of Petroleum Resources, NNPC, PTDF, and other organisations, courtesy of NNPC and PTDF. Some of the offshore conferences and seminars I have attended include the AACE (Association for the Advancement of Cost Engineering) International Annual Meetings (2017 and 2018) and the Western Winter Workshop in California, USA (2017 and 2018). This afforded them the opportunities to upskill their capacities as well as excellent networking.
How did your training as a Certified Cost Engineer shape your contributions to petroleum project planning, execution, and national policy development?
My training as a Certified Cost Engineer fundamentally shaped my approach to petroleum project planning, execution, and broader national policy formulation. It equipped me with the analytical tools and cost governance frameworks needed to evaluate complex upstream and downstream projects—not only in terms of technical feasibility, but also in terms of cost efficiency, schedule integrity, and value for money.
While serving as the Senior Technical Assistant for Efficiency and Transparency to both the GMD of NNPC and the Honourable Minister of Petroleum Resources, I led initiatives under the ‘Seven Fixes’ framework, particularly those aimed at reducing Nigeria’s crude oil production cost per barrel and drastically shortening the contracting cycle across the industry. Through rigorous cost analysis and stakeholder engagement, we successfully implemented industry-wide directives to reduce the cost per barrel from $32 to $15 and shorten the contracting timeline from 36 months to 6 months, both of which were signed off and implemented under ministerial authority.
Moreover, I championed capacity-building efforts in cost engineering by organising technical seminars and facilitating the participation of MPR, NNPC, and PTDF staff in international conferences hosted by AACE International. This wasn’t just about individual development; it was about institutionalising cost consciousness and embedding structured project control principles into public sector operations.
Ultimately, the discipline of cost engineering empowered me to bridge the gap between engineering, finance, and policy, ensuring that technical decisions aligned with national economic priorities and global competitiveness.
Having worked at the heart of Nigeria’s oil and gas leadership, how would you assess the effectiveness of reforms, such as the Petroleum Industry Act (PIA), especially from a cost governance and implementation standpoint?
The Petroleum Industry Act (PIA) is a significant step toward restructuring Nigeria’s oil and gas sector for transparency, efficiency, and commercial viability. As someone who worked closely on pre-PIA reforms, particularly cost reduction and contracting efficiency, I see the Act as a formalisation of principles we began embedding during that period.
From a cost governance standpoint, the PIA’s mandate to commercialise NNPC and streamline regulatory oversight is commendable. However, the real challenge lies in disciplined implementation. Without strong project controls, timely execution, and a performance-driven culture across institutions such as NNPCL, NUPRC, and NMDPRA, the law risks falling short of its full potential.
In essence, the PIA provides the proper framework. Now, the focus must shift to measurable delivery, cost discipline, and institutional accountability.
In your experience, what has been the most persistent challenge in Nigeria’s petroleum sector, and why has it remained unresolved for so long?
One of the most persistent and consequential challenges facing Nigeria’s petroleum sector is the chronic absence of institutional accountability, particularly in the areas of cost governance, project delivery, and regulatory discipline.
Over the decades, Nigeria has launched multiple reform initiatives aimed at addressing inefficiencies in the oil and gas value chain. The Petroleum Industry Act (PIA) represents one of the most comprehensive efforts to restructure the sector. However, despite its ambitious scope, the impact of the PIA and other reforms has been undermined by a longstanding disconnect between policy formulation and execution.
During my tenure as Senior Technical Assistant (STA) for Efficiency and Transparency, I worked closely with both the GMD of NNPC and the Minister of Petroleum Resources to take bold steps in addressing this issue. We developed and signed off directives to reduce contracting timelines from an average of 36 months to just six months and instituted directives to lower the cost per barrel of crude oil production from $32 to $15. These gains were made possible by a focused, data-driven, and results-oriented approach to project governance.
Yet, the challenge remains systemic. Fragmented regulatory oversight, bureaucratic inertia, and the absence of performance-linked accountability mechanisms continue to impede consistent progress. Moreover, political transitions often result in policy discontinuity, eroding institutional memory and weakening the enforcement of hard-won reforms.
If Nigeria is to unlock the full value of its hydrocarbon resources, the conversation must go beyond legislation. We must institutionalise cost control and performance management as non-negotiable elements of sector governance, supported by real-time data dashboards, enforceable timelines, and leadership insulated from political volatility.
The future of Nigeria’s petroleum sector hinges not on the next policy document, but on whether the institutions tasked with implementation are empowered, monitored, and held accountable. Without this shift, the sector will remain trapped in a cycle of reform without results.
Your books have become foundational material in energy literature, including for our readers. What inspired you to write them, and what gaps were you aiming to fill in the industry’s body of knowledge?
The inspiration behind writing these books was twofold: a deep concern for the recurring inefficiencies in Nigeria’s petroleum sector, and a strong desire to document and share practical frameworks for improving value creation through disciplined cost governance, leveraging over 30 years of hands-on industry experience.
Over the years, I observed a critical knowledge gap in how cost engineering principles were applied—or rather, under-applied—within the oil and gas industry in Nigeria and across Africa. Much of the available literature has focused on the technical and engineering dimensions of petroleum operations that are oil-sea-focused, and has given insufficient attention to structured cost control, project performance monitoring, and value optimisation. I recognised the need to bridge that gap through context-specific, experience-based writing, leveraging local industry exposure.
Cost Engineering and Cost Controls was written to provide a clear, actionable foundation for professionals and decision-makers who manage high-value, high-risk oil and gas projects. It demystifies key cost engineering concepts and adapts global standards to the unique operational realities of emerging economies.
Maximising Value in Oil Industry Using Cost Engineering builds on that foundation by demonstrating how organisations can align engineering, finance, and policy to drive strategic outcomes—not just deliver projects. It explores case studies, tools, and performance benchmarks, and is particularly useful for those in leadership roles.
Finally, The Cost of Fuel Scarcity in Nigeria was written to address a socio-economic concern that affects every Nigerian. I participated in almost all the NNPC Wra Rooms, and I was aware of the vast resources being deployed to manage the fuel scarcity. While fuel scarcity is often discussed from a policy or supply chain standpoint, I wanted to provide a rigorous, cost-centred analysis of its actual economic impact—from lost productivity to inflationary pressure. That book serves as both a diagnostic and a call to action.
Together, these books aim to strengthen the intellectual backbone of the energy sector, promote a culture of cost discipline, and equip current and future leaders with the knowledge to manage resources responsibly.
Energy literacy remains low in the public domain. In your view, how can professionals and institutions better communicate technical energy concepts to the average Nigerian or policymaker?
Despite Nigeria’s vast energy resources and ongoing reforms, public understanding of the sector remains alarmingly low. This lack of energy literacy has real consequences: it fuels misinformation, weakens policy support, and disconnects citizens from decisions that affect their daily lives, from pump prices to electricity bills.
The truth is, we’ve made energy too technical for the average Nigerian to follow. Terms like “upstream regulation,” “contracting cycles,” or “price modulation” rarely translate meaningfully outside professional circles. But the impact of these concepts is deeply felt at the grassroots level.
It’s time for professionals and institutions to bridge this gap.
First, we must communicate energy issues in a language people understand. When fuel subsidy removal drives up food prices, or power outages disrupt businesses, we need to clearly explain why—not in industry jargon, but in practical terms.
Second, energy communication must go beyond policy memos and boardrooms. We need short videos, infographics, local-language radio shows, social media explainers, and town hall meetings. Energy literacy should be part of civic education, not just something discussed in oil conferences, including introducing the subject in primary schools.
Third, collaboration is essential. Engineers, economists, journalists, and educators must collaborate to break down complex issues into clear, digestible insights. We also need to open up access to relevant data, so the public and policymakers can engage with facts rather than speculation.
Energy powers development. But if people don’t understand how it works, they can’t hold institutions accountable or support meaningful reform. We don’t just need energy experts. We need energy storytellers. I think the management of Valuechain Magazine is doing a pretty good job in this regard.
As a trainer and consultant today, what areas do you believe young engineers and policy professionals must master to become relevant in the evolving global energy landscape?
To thrive in today’s rapidly changing global energy landscape, young engineers and policy professionals must go beyond traditional technical expertise and adopt a new, multidisciplinary toolkit.
First, cost engineering and project economics remain critical. With tighter margins and increasing investor scrutiny, professionals must understand how to optimise value across the project lifecycle, from design to decommissioning. Recall that the PIA has incorporated the Decommissioning and Abandonment Fund to be set aside for future D&A programs. The ability to manage costs, assess risks, and align technical decisions with financial realities is non-negotiable.
Second, energy transition literacy is now essential. Whether in hydrocarbons or renewables, tomorrow’s leaders must grasp the dynamics of decarbonization, ESG frameworks, carbon pricing, and the economics of clean energy technologies. Understanding the policy implications of the global energy shift is just as important as mastering the technologies driving it.
Third, digital fluency is no longer optional. From data analytics and automation to AI and remote monitoring systems, young professionals must be able to effectively integrate digital tools into their operational strategies. Energy systems are becoming smarter—so must those who manage them.
Fourth, we need stronger policy competence and a deeper understanding of regulations. Engineers who understand how laws are made, how incentives are structured, and how to navigate licensing, compliance, and institutional frameworks will always be more impactful.
Lastly, communication and collaboration skills are increasingly valuable. The most effective professionals are those who can translate complex ideas into clear and concise explanations—whether for boards, communities, or policymakers.
In summary, relevance in the energy sector today demands agility, interdisciplinarity, and a strong sense of purpose. Young professionals who invest in both hard and soft skills will not only stay relevant, but they’ll also lead the future.
How do you balance the need for technical knowledge with the soft skills required for leadership in such a politically sensitive industry?
In a sector as complex and politically sensitive as oil and gas, technical knowledge is your foundation, but soft skills are your operating system. You need both to lead effectively.
Technical expertise earns you credibility. It allows you to make informed decisions and command respect among peers and stakeholders. But without emotional intelligence, diplomacy, and strategic communication, even the best ideas can fail to gain traction.
During my time as STA to both the GMD of NNPC and the Minister of Petroleum, I often found myself navigating multiple layers—policy, politics, and performance. I learned that you must speak the language of engineers in one room and the language of policymakers in the next.
Leadership in this space is about balancing fact with context, and influence with integrity. That balance is not easy, but it’s essential for meaningful, lasting impact.”
With the energy transition gaining momentum globally, what strategic role should Nigeria and Africa play, especially in terms of gas development, which you’ve long advocated for?
Africa and Nigeria, in particular, must position natural gas as both a transitional and transformational fuel. While the global North accelerates toward renewables, we must ground our strategy in energy realism and development needs. Therefore, Nigeria must fully and maximally produce both crude oil and natural gas for development to reach the status of the Global North before ‘slowing’ down for renewables. Nigeria must avoid ’Green Colonialism.
Nigeria holds one of the world’s largest proven gas reserves. Yet, our domestic utilisation remains low. I’ve consistently advocated for gas to be treated not just as an export commodity, but as a foundation for industrialisation, power generation, and job creation. It’s the bridge that can connect energy access with economic growth.
Strategically, Nigeria should lead in three areas:
- Maximise the production of crude oil and gas for development
- Domestic infrastructure development—pipelines, processing plants, and power systems.
- Regional integration—through initiatives like the West African Gas Pipeline and African Continental Free Trade Agreement.
- Global advocacy—to ensure Africa’s energy transition narrative is not dictated by one-size-fits-all climate policies, but shaped by equity, differentiated responsibilities, and practical timelines.
Gas is not just our transitional fuel; it is our strategic lever for inclusive growth in this evolving energy future.
Suppose you had the opportunity to advise the current Minister of Petroleum and GCEO of NNPC Ltd today. What would be your top three recommendations for ensuring long-term energy security and economic impact?
If I were advising the current Minister and GCEO today, my top three recommendations would be:
Institutionalise Cost Governance and Performance Monitoring
Sustainable impact begins with discipline. Reinstate and strengthen tools like the Ministerial Dashboard to ensure every agency and operator is held accountable for cost, timelines, and deliverables. Cost overruns and long contracting cycles must not become normalised again.
Details for implementation:
• Reinstate and scale the Ministerial Dashboard for all regulatory and operating entities.
• Embed cost engineering benchmarks and contracting KPIs across upstream, midstream, and downstream projects.
• Re-jig the Cost Database for the industry as well as for NNPC (I developed and operationalised one for NNPC when I was the GGM ETD in 2019).
• Require quarterly public-facing performance briefs to ensure transparency and stakeholder trust.
Prioritise Gas Infrastructure as a National Asset
Treat natural gas not just as a revenue stream but as the backbone of domestic industrialisation. Accelerate investments in processing, pipelines, and power plants—notably to support manufacturing and energy access. Gas must drive economic diversification, not just exports.
Details for implementation:
- Accelerate development of gas processing and transportation infrastructure (pipelines, mini-LNG, and gas-to-power), the Ogidingbe GRIP, etc.
- Expand domestic gas utilisation targets linked to manufacturing zones and MSMEs.
- Establish a Presidential Gas Infrastructure Delivery Task Force for coordinated execution.
Strengthen Regulatory Certainty and Investor Confidence
The PIA offers a strong foundation, but clarity, consistency, and speed of execution are essential. Create a stable environment where both local and international investors can commit long-term capital without policy reversals or administrative bottlenecks.
Details for implementation:
- Issue a multi-year implementation roadmap for the PIA with milestones and accountability metrics.
- Host regular investor engagement forums to address bottlenecks and build confidence.
• Ensure coordination between NUPRC, NMDPRA, and NNPC Ltd to reduce administrative friction.
These three strategic levers — governance discipline, gas infrastructure, and regulatory confidence — are critical to transforming Nigeria’s energy potential into sustainable economic development. I remain available to support further strategy formulation and implementation if required.