The role of national oil companies in shaping energy policy and development: a comparative analysis of Nigeria and Brazil

Purpose This paper aims to examine the evolving role of national oil companies (NOCs) in shaping energy policy and national development by comparing the Nigerian National Petroleum Company Limited (NNPCL) and Petróleo Brasileiro S.A. (Petrobras). It explores how NNPCL’s and Petrobras’ institutional evolution, governance frameworks and operational strategies influence energy policy outcomes in Nigeria and Brazil, answering key questions about NOCs’ function as policy instruments and commercial actors and lessons drawn from their experiences in aligning national energy strategies with developmental goals. Design/methodology/approach This study uses comparative and trend analysis, informed by a review of existing literature, national policy frameworks, financial reports and data from international organizations connected to natural resource management, oil and gas data, economic development and policy, guided by insights from political economy, institutional theory and development policy, while integrating sectoral diagnostics, governance evaluation and transition readiness benchmarks to provide actionable, context-specific recommendations for Algeria’s energy future. Findings The comparative analysis reveals stark contrasts between NNPCL and Petrobras. Petrobras outperforms NNPCL owing to its governance model, which benefits from partial privatization, reducing political interference and enhancing operational efficiency. Petrobras’ diversified energy portfolio and global partnerships amplify its geopolitical influence, unlike NNPCL, which struggles with inefficiency, politicization and over-reliance on oil. Research limitations/implications This study highlights the complexity of NOC performance across diverse regulatory environments while acknowledging key limitations. Reliance on specific cases of NNPCL and Petrobras reduces generalizability, as findings may not fully capture the diversity of NOCs worldwide. Emphasis on domestic frameworks may also underestimate external influences, global market volatility and geopolitical dynamics. Limited access to comprehensive datasets constrains empirical depth, while differing definitions of governance and success complicate comparative assessments. Future research should broaden the scope and examine external shocks to enhance applicability, strengthen comparative insights and deepen the understanding of NOCs’ evolving developmental role. Practical implications The study proposes reforms to enhance NNPCL’s effectiveness, focusing on governance, diversification and alignment with global energy transitions, drawing on lessons from Brazil’s successes and global best practices from Equinor, Aramco and Petronas. Social implications Effective governance and strategic planning are essential for sustainable energy development, shaping policy decisions and strengthening the performance of NOCs in resource-rich countries. By aligning institutional capacity with developmental priorities, governance frameworks can enhance accountability, improve resource management and foster innovation. Strategic planning further supports resilience against market volatility, enabling NOCs to balance domestic needs with global competitiveness. Together, these elements contribute to economic diversification, inclusive growth and long-term energy security, positioning NOCs as pivotal actors in advancing sustainable development trajectories. Originality/value This study makes a timely and necessary contribution to understanding NOCs’ evolving role amid shifting global energy paradigms. It advances the literature on energy justice and developmental governance, providing a comparative perspective for policy transfer and institutional learning. By exploring NNPCL and Petrobras’ experiences, this study sheds light on how NOCs can drive broad-based development, strengthen institutional resilience, foster inclusive growth and break entrenched patterns of elite capture while informing future governance reforms and transition strategies.