removed Kyari, who had been at the helm of the national oil company since 2019, as part of a broader overhaul, which the Presidency said was aimed at boosting Nigeria’s crude and gas output.
“President Tinubu removed all other board members appointed with Pius Akinyelure and Kyari in November 2023,” Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, said in a statement in the early hours of Wednesday.
Consequently, he appointed Bashir Ojulari as the new Group CEO, effective from April 2, 2025. So This Happened [EP 255] reviews Davido and Chioma, Sharon Ooja star-studded weddings, others
“The new 11-man board has Bayo Ojulari as the Group CEO and Musa Ahmadu-Kida as non-executive chairman,” the statement read.
Multiple Presidency officials familiar with the developments said the shake-up was a performance-based reshuffle, arguing that those previously in charge “were going in circles” and some of them had “become part of the problem, rather than the solution.”
One official, who spoke on condition of anonymity because he was not authorised to speak on the matter officially, told our correspondent, “The President did this because of their performance because we needed to do things differently. The former people were taking us in circles, and then some of them became part of the problem.
“There needs to be a new direction. You need new people to bring new energy into the system.
“Look at them. Every one of them is capable. They are core industry professionals, real industry experts who know the industry inside and out. They are not politicians. This is the first time we have an entire cast of technocrats.”
Another official familiar with the development said the President believed that new blood was essential to jump-start production growth.
The official explained, “It is not about (Kyari’s) age. The NNPCL is a limited liability company and is not governed by civil service rules. So, it’s not about his age. There is always a need to get new brains that can deliver in new directions. The President has his mandate, which is clearly stated in the statement. He gave them his performance metrics, such as the amount of crude we produce. He asked them to review all blocks because we want to know which ones are producing and which are not.
“We have to optimise those that are not producing. He wants them to review all our assets within a certain period and give us good production. By 2030, they must be producing 3,000,000 barrels per day, and between now and 2027, we must stabilise at 2,000,000 per day. Then, gas, we must produce 10 billion cubic meters between now and 2030. These are performance metrics, and that is how it should be done.
“But the former system was not giving us that. They have been around the same spot for years. Our OPEC quota has not improved much since 1973. We have not been able to meet them. That is why reforms are important.”
Also appointed to the new 11-man board is Adedapo Segun, who replaced Umaru Isa Ajiya as the chief financial officer last November.
Six board members and non-executive directors represent the country’s geopolitical zones. They are: Bello Rabiu (North West); Yusuf Usman (North East); a former managing director of the NLNG, Babs Omotowa (North Central); Austin Avuru (South-South); David Ige (South West), and Henry Obih (South East).
Onanuga said Mrs Lydia Jafiya, Permanent Secretary, Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed represents the Ministry of Petroleum Resources.
“All the appointments are effective today, April 2,” he announced.
Tinubu handed out an immediate action plan to the new board, asking them to conduct a strategic portfolio review of NNPCL-operated and Joint Venture Assets to ensure alignment with value maximisation objectives.
While the NNPCL reported $17bn in new investments within the sector last year, Onanuga said the administration now envisions increasing the investment to $30bn by 2027 and $60bn by 2030.
“Furthermore, President Tinubu expects the new board to elevate NNPC’s share of crude oil refining output to 200,000 barrels by 2027 and reach 500,000 by 2030.
The new board chairman, Musa Ahmadu-Kida, is from Borno State. He started his career in the oil industry at Elf Petroleum Nigeria and later joined Total Exploration and Production as a trainee engineer in 1985.
Musa became Total Nigeria’s Deputy Managing Director of Deep Water Services in 2015. Last year, he became an Independent Non-Executive Director at Pan Ocean-Newcross Group.
Ojulari, the new NNPC Limited Group CEO, hails from Kwara State. Until his new appointment, he was Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company. His Renaissance recently led a consortium of indigenous energy firms in the landmark acquisition of the entire equity holding in the Shell Petroleum Development Company of Nigeria, worth $2.4bn.
Tinubu thanked the old board members for their dedicated service to NNPC Limited, particularly their efforts in rehabilitating the old Port Harcourt and Warri refineries, which enabled them to resume petroleum product production after prolonged shutdowns.
Nigeria, once Africa’s leading oil producer, has struggled for years to fulfil its production quota stipulated by the Organisation of the Petroleum Exporting Countries. While OPEC figures have often placed the country’s desired output above two million barrels per day, the NNPCL has repeatedly fallen short – citing pipeline vandalism, underinvestment, and ageing infrastructure.
Pundits say that under Kyari, some reforms were introduced, but overall production remained below target.
Refineries revamp
Operators and experts in the oil and gas sector have set an agenda for the new Group Chief Executive of the Nigerian National Petroleum Company Limited, Ojulari who replaces the the company’s former GCEO, Kyari
While congratulating Ojulari and the other board members newly appointed by Tinubu, stakeholders enjoined them to ensure all the refineries under the watch of the NNPCL are revamped.
The new NNPC leaders were charged to rebrand the NNPC, renew the naira-for-crude deal, divest some of the company’s assets, restore investors’ confidence, and be apolitical.
In an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, described the sweeping reconstitution as a welcome development.
He said IPMAN received the news with warmest regards, saying Tinubu is reforming the oil and gas sector.
Ukadike told the new NNPCL team to ensure that the refineries resume operations at full capacity to give enough and affordable fuel to Nigerians.
He urged Ojulari and his team to ensure the Port Harcourt, Warri, and Kaduna refineries are maximised to create more jobs for the masses.
“We received the news with the warmest regards. Mr President is renewing and reforming the oil and gas industry. And whatever that will drive both the implementation of policies and the Petroleum Industry Act is in order.
“What is imminent is change. So, we the independent marketers association welcome this.
“We congratulate the new man and charge him to ensure that all these government-owned refineries in Port Harcourt, Warri, and Kaduna are producing enough fuel for the economy. This will also create jobs for the people amd and make petroleum products available,” he said.
Ukadike appealed to Ojulari and the board to settle the rift between the NNPCL and the Dangote refinery as far as the naira-for-crude deal is concerned.
He urged them to renew the deal and put an end to the crisis so as to enable smooth fuel distribution across the nation.
We also want the new GCEO to use this good office to revisit the naira-for-crude deal; look into the saga and put an end to it so that it will better the distribution process and strengthen our economy,” Ukadike stated.
Similarly, the Nigerian Association of Petroleum Explorationists lauded Tinubu for the new NNPCL board appointments noting that it was a bold step towards repositioning the oil and gas industry for greater efficiency, transparency, and profitability.
In a statement signed by NAPE President, Johnbosco Uche, the association said the new board has a mandate to enhance operational efficiency, restore investor confidence, and increase commercial viability, saying this aligns with NAPE’s goals and aspirations for the industry.
The explorationists expressed confidence that the new team would bring the necessary expertise and experience to drive the oil and gas sector forward.
According to Uche, NAPE is delighted to observe that the newly appointed board comprises seasoned professionals, including Austin Avuru, a former President of NAPE who has held esteemed top management positions within the oil and gas industry.
“We look forward to collaborating with them to achieve the desired growth and development in the oil and gas sector,” the statement added.
The Crude Oil Refinery-owners Association of Nigeria requested that the newly appointed board take bold steps towards ensuring Nigeria achieved self-sufficiency in domestic refining and energy security.
CORAN’s Publicity Secretary, Eche Idoko, said, “CORAN congratulates the new board of the NNPCL and the new GCEO on their appointment. They are coming in at a time when the market globally is repositioning, and the Nigerian market, particularly in the midstream and downstream sectors, is receiving increasing attention.”
“We hope that the new NNPCL board will be bullish in the quest to make Nigeria self-sufficient in domestic refining and energy security. We want to see a more visible NNPCL that coordinates and works closely with local investors, especially in the emerging midstream segment. We look forward to them building on the legacy of the last administration and ensuring that Nigeria becomes a refining hub.”
Similarly, the National President of the Petroleum Retailers Outlets Owners Association of Nigeria, Billy Gillis-Harry, asked the board to ensure a daily production of 700,000 barrels per day in refining strictly for domestic use to achieve energy independence.
Our message is simple: wherever Mele Kyari’s administration stopped, the new board should take it to the next level. They must ensure that the oil and gas sector grows, driving the economic value that it should in Nigeria,” Gillis-Harry said.
“We want to see discussions around how we can increase local refining capacity. This could start with a boost of 700,000 barrels per day dedicated strictly to domestic refining. This would require new work on how communities can cooperate with the NNPCL and the government for a win-win situation.”
Hope rising
Meanwhile, an expert in the oil and gas industry, Professor Emeritus Wumi Iledare, has expressed high hopes that the new NNPC leadership will not fail as their failure is a bad signal for the country.
In an interview with our correspondent, Iledare said this was the first time the NNPC had a board that was apolitical, expressing optimism in the capacity of the people he called “core professionals.”
“Finally, NNPCL has a board that is majorly apolitical by nature with the appointments of timber and caliber professionals. It is the dawn of a new era for NNPCL to rekindle, restructure, and rebound itself along the intent of PIA 2021,” he said
Iledare listed what he expects the new board to focus on immediately: “First is (settling) the dilemma naira-for-crude deal with local refineries; second is selling NNPCL shares to the public with a limit to what individual can buy and restrict corporate buyers; third, divest some joint venture shares in divested international oil companies’ shares; fourth, rekindle, restructure, and rebound NNPC Limited along the intent of the PIA.”
He urged Ojulari to “promote the economy of scale mentality and correct the apparent diseconomies of scale bounding the potential of NNPCL.
He added, “Bayo Oujulari, Austin Avuru, Yusuf Usman, Rabiu Bello, David Ige, Babs Omotowa are professionals I know personally. I pray that Nigeria does not get them. It is like having six GCEOs.”
Speaking on the sack of Kyari, the don posited that “he was thrown into the fire the way he was appointed by former President Muhammadu Buhari without following the process of the PIA.”
He spoke further that it is difficult for a leopard to change its skin without a surgical operation.
“Going from GMD to GCEO was difficult for him and working with an incompetent board imposed on him was difficult. So, I admired his attitude to risk. He was a risk seeker but politically constrained and very too transactionally minded. He should have resigned the way his CFO retired. Best wishes to him.
“His exit, notwithstanding, the change is the dawn of a new era for NNPCL. For the first time ever, the NNPCL has an apolitical Board with a good understanding of what it takes to have a commercial mentality,” Iledare maintained.
Farewell for Kyari
Following the new appointments, the management and staff of NNPC on Wednesday welcomed Ojulari and the Board of Directors.
A statement by the company’s spokesman, Olufemi Soneye, said, “We extend our profound appreciation to the outgoing CCEO, Mr Mele Kyari, and the former Board Members for their selfless and dedicated service to the Company and to the nation.
“Mr Kyari’s leadership and tireless efforts have left an indelible mark on NNPC Ltd., and we are sincerely grateful for his outstanding contributions.
“We wish him and all departing Board Members continued success and fulfilment in their future endeavours.”
The PUNCH reports that Kyari’s removal came at a time when the NNPC refused to sell crude to the Dangote refinery in naira as ordered by the President last year.
The seeming collapse of the deal led to the suspension of fuel naira sales to local marketers in naira.
This has since led to a hike in petrol prices from N860 per litre to N930 or more, depending on the location.
Tompolo lauds Tinubu
Chairman, Tantita Security Services Nigeria Limited, Government Ekpemupolo, aka Tompolo, has lauded President Tinubu for his “careful selection of seasoned professionals” as the new Management Board of the NNPCL.
He also congratulated the newly appointed 11-member board and management of the NNPCL.
In a personally signed statement made available to journalists in Warri on Wednesday, Tompolo, the Ibe-Ebidouwei of Ijaw Nation, noted that Tantita Security Services Nigeria Limited recognised the new appointments “as a pivotal moment in the journey of the NNPCL and the Nigerian oil and gas industry.”
The statement read, “Indeed, this decision by Mr. President underscores his administration’s dedication to ensuring that only competent hands are entrusted with optimising the vast benefits of our nation’s oil and gas sector.
“The challenges and opportunities before this new management and board are immense, but we are confident in their ability to drive the ongoing restructuring of the NNPCL to greater heights.
“Under their stewardship, we believe that the President’s mandate to ramp up local refining capacity and increase Nigeria’s crude oil production to 2mbpd in record time will be realised and surpassed.
“As our company has always done, TSSNL remains steadfast in its commitment to partnering with the NNPCL to secure and enhance Nigeria’s oil production capabilities. Our expertise in oil asset protection and our deep-rooted presence in the Niger Delta position us as a reliable ally in ensuring that the nation’s resources are safeguarded and utilised efficiently for the collective benefit of all stakeholders.”
Credit: Punch