In an abrupt move on Wednesday, President Bola Tinubu ousted the chief executive and chairman of the state-owned Nigerian National Petroleum Company Limited.
The former NNPC chairman, Chief Pius Akinyelure and group chief executive Mallam Mele Kolo Kyari were removed from their roles.
By the same order, the entire NNPC board was also removed, with a new 11-people board appointed, led by Bashir Bayo Ojulari as group chief executive and Ahmadu Musa Kida as non-executive chairman.
Ojulari, from Kwara State, had until now held the role of chief operating officer at Renaissance Africa Energy Company, and was previously managing director of Shell Nigeria Exploration & Production Company from 2015 to 2021.
Kida, from Borno State, was non-executive director at Pan Ocean-Newcross Group, and in 2015 was appointed Total Nigeria’s deputy managing director of deep water services.
Adedapo Segun, who replaced Umaru Isa Ajiya as chief financial officer last November, has also been appointed to the new board.
President 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.
This strategic reconstitution comes at a pivotal moment for the energy sector, one marked by transformation, diversification, and an ongoing transition toward sustainability.
Additionally, the inclusion of six non-executive directors representing Nigeria’s geopolitical zones, as well as representation from the Ministries of Petroleum Resources and Finance, signals a broad-based approach to tackling the challenges facing the sector.
The six board members and non-executive directors representing the country’s geopolitical zones 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).
These appointments, made in accordance with Section 59, Subsection 2 of the Petroleum Industry Act, 2021, are expected to enhance operational efficiency, restore investor confidence, increase local content, boost economic growth, and advance the commercialization and diversification of gas resources.
In light of the current economic challenges, particularly the foreign exchange squeeze and inflationary pressures, the need for effective leadership and strategic vision in the energy sector has never been more urgent.
These reforms are crucial for attracting sustainable investments that will stimulate both oil and gas production and the development of local refining capacity.
President Tinubu’s decision to remove the old NNPC board is a necessary course correction. The move, long advocated by policy analysts and business leaders, signals a willingness to tackle inefficiencies in the country’s most vital revenue-generating sector.
The NNPC has, for years, been synonymous with opacity, mismanagement, and entrenched inefficiencies. Kyari’s tenure did little to address these longstanding challenges, as oil theft persisted, supply disruptions worsened, and accountability remained elusive.
“In light of the current economic challenges, particularly the foreign exchange squeeze and inflationary pressures, the need for effective leadership and strategic vision in the energy sector has never been more urgent.”
President Tinubu equally handed out an immediate action plan to the new board, asking them to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives.
While the NNPC reported $17bn in new investments within the sector last year, the Tinubu’s 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.
Nigeria, once Africa’s leading oil producer, has struggled for years to fulfill 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 NNPC has repeatedly fallen short – citing pipeline vandalism, underinvestment, and ageing infrastructure.
Nigeria’s petroleum sector requires a shift towards transparency, efficiency, and alignment with global best practices, qualities that have been largely absent in its governance.
A leader who prioritises infrastructural sustainability, operational efficiency, and fiscal accountability must take the helm of the NNPC and drive meaningful reforms.
Beyond oil, Nigeria is sitting on an underutilised goldmine: natural gas. With reserves of 20.9 trillion cubic feet, Nigeria has the potential to be an energy powerhouse. Yet, it lags far behind global leaders like Russia, which effectively leverages its 38 trillion cubic feet of reserves for economic dominance.
Instead of harnessing this wealth, Nigeria flares 40 per cent of its gas output, leading to an annual waste of nearly $1 billion: resources that could be channeled into energy security, industrialisation, and revenue generation. Investment in natural gas could revolutionise Nigeria’s economy. Yet, the country is still experiencing power supply instability, foreign currency shortages, and economic instability.
Sacking officials without addressing systemic dysfunction will achieve little. The Tinubu’s administration must be guided by performance metrics, not political expediency. Future appointments must also be based on competence, not patronage. Nigeria cannot afford a government that rewards loyalty over expertise, particularly at a time of economic crisis.
Investors and the public alike require confidence that these actions are not merely reactive but part of a coherent economic strategy. Transparency, measurable targets, and a firm commitment to accountability will be key to ensuring that these changes translate into meaningful economic progress.
While the removal of Mele Kyari demonstrates a willingness to act, it must be the catalyst for systemic change. To truly restore Nigeria’s economic credibility, President Tinubu should prioritise a comprehensive evaluation of his economic team, establish clear accountability frameworks for ministers, and implement bold, decisive policy reforms.
In line with the presidential directive, the new NNPC board has ramped up its new restructuring drive with the appointment of Roland Ewubare as its Group Chief Operating Officer and erstwhile top ExxonMobil’s official, Adesua Dozie, as its Company Secretary and Chief Legal Officer.
Also, the national oil company picked Mumuni Dagazau as the new Executive Vice President Downstream and Sophia Mbakwe as Executive Vice President Business Services.
This moment in Nigeria demands a strategic and sustained commitment to addressing the root causes of our economic challenges, moving beyond individual actions to build a foundation for long-term stability and growth.
