President Bola Tinubu has dismissed Mele Kyari and other board members of the Nigerian National Petroleum Corporation Limited due to increasing worries about their performance and inability to achieve crucial production goals, according to statements made by officials from the Presidency.

On Wednesday, Tinubu unexpectedly dismissed Kyari from his position leading the national oil company—a role he had held since 2019—as part of a larger restructuring effort intended to increase Nigeria’s production of crude oil and natural gas, according to statements made by the Presidency.

“President Tinubu dismissed all the board members who were appointed alongside Pius Akinyelure and Kyari in November 2023,” stated Bayo Onanuga, the Special Adviser on Information and Strategy for President Tinubu, in an early morning press release on Wednesday.

As a result, he named Bashir Ojulari as the new Group CEO, with the appointment taking effect on April 2, 2025.

“The newly appointed 11-member board includes Bayo Ojulari as the Group CEO and Musa Ahmadu-Kida as the non-executive chairman,” according to the statement.

Several presidential aides who were privy to the situation indicated that the restructuring was due to performance evaluations, suggesting that previous leaders “weren’t making progress” and certain individuals had “turned into part of the issue instead of being part of the answer.”

An official, speaking anonymously due to lack of authorization for comment, informed our correspondent: “The President took this action owing to poor performance as we required changes. The previous individuals were leading us nowhere, with some even contributing to the issues.”

There must be a fresh approach. It requires new individuals to inject new vitality into the system.

Observe them all. Each individual possesses the necessary skills. These are seasoned veterans from key sectors, genuine specialists with deep insights into their fields. They are not policymakers. For the very first time, our lineup consists entirely of technical experts.

A different official close to the project mentioned that the President felt introducing fresh talent was crucial for boosting production momentum.

The official clarified, “Age isn’t the issue here. The NNPCL operates under different regulations since it’s a limited liability company and doesn’t follow civil service guidelines. Thus, Kyari’s age is irrelevant. We consistently require fresh talent capable of driving progress in innovative ways. The President outlined specific expectations for their performance, like the volume of crude oil production. Additionally, he instructed them to reassess every block so we can identify those contributing to output versus those that aren’t.”

We need to optimize those units that aren’t currently productive. We want them to assess all of our resources over a specific timeframe and ensure high output levels. They must reach an output of 3,000,000 barrels daily by 2030, with stabilization at 2,000,000 barrels from today until 2027. Additionally, for natural gas, we aim to generate 10 billion cubic meters between now and 2030. These represent key performance indicators, which is precisely what needs to happen.

However, the previous system did not provide us with what we needed. These systems had remained stagnant for many years. Since 1973, our OPEC quotas have seen little improvement. We’ve struggled to achieve these targets. This is precisely why reforms are crucial.

Adedapo Segun was also named to the newly formed 11-person board. He took over from Umaru Isa Ajiya as Chief Financial Officer last November.

The six board members and non-executive directors representing the nation’s geopolitical regions include: Bello Rabiu from North West; Yusuf Usman from North East; Babs Omotowa, who previously served as the managing director of NLNG, from North Central; Austin Avuru from South-South; David Ige from South West; and Henry Obih from South East.

Onanuga mentioned that Mrs Lydia Jafiya, who serves as the Permanent Secretary at the Ministry of Finance, will represent her department on the newly formed board. Meanwhile, Aminu Said Ahmed will speak for the Ministry of Petroleum Resources.

“Every appointment becomes effective starting from today, which is April 2nd,” he declared.

Tinubu presented an urgent action plan to the newly appointed board, requesting they undertake a comprehensive strategic assessment of assets managed by NNPCL as well as joint venture properties to guarantee consistency with goals aimed at enhancing value.

Although the NNPCL announced $17 billion in fresh investments for this sector last year, Onanuga stated that the government currently aims to boost these investments to $30 billion by 2027 and to $60 billion by 2030.

Moreover, President Tinubu anticipates that the newly appointed board will boost NNPC’s contribution to Nigeria’s crude oil refining capacity to 200,000 barrels by 2027 and aims for an increase to 500,000 barrels by 2030.

Musa Ahmadu-Kida, who hails from Borno State, has been appointed as the new chair of the board. His professional journey began in the oil sector with Elf Petroleum Nigeria before he moved on to join Total Exploration and Production as an engineering trainee in 1985.

In 2015, Musa was appointed as the Deputy Managing Director for Deep Water Services at Total Nigeria. The previous year, he took up the position of Independent Non-Executive Director at Pan Ocean-Newcross Group.

Ojulari, who has been appointed as the new CEO of NNPC Limited Group, originates from Kwara State. Prior to this position, he served as the Executive Vice President and Chief Operating Officer at Renaissance Africa Energy Company. Recently, his company led a group of local energy companies in acquiring all shares of the Shell Petroleum Development Company of Nigeria for $2.4 billion.

Tinubu expressed his gratitude to the former board members of NNPC Limited for their committed service, highlighting their work in reviving the outdated facilities at the Port Harcourt and Warri refineries. Their initiatives allowed these plants to restart producing petroleum products following extended periods of downtime.

Once the top oil producer in Africa, Nigeria has faced challenges in meeting its production targets set by OPEC. Despite the organization typically aiming for an output exceeding two million barrels daily, the Nigerian National Petroleum Corporation Limited (NNPCL) has consistently failed to reach these levels due to issues such as sabotage of pipelines, insufficient investment, and outdated facilities.

Experts claim that during Kyari’s tenure, several changes were implemented; however, the overall output still fell short of the desired targets.

Refineries revamp

The operators and specialists within the oil and gas industry have outlined priorities for the newly appointed Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited, Ojulari, who has taken over from the previous GCEO, Kyari.

As they celebrated Ojulari and the other board members recently appointed by Tinubu, the stakeholders urged them to make sure that all refineries overseen by the NNPCL are revitalized.

The newly appointed NNPC leaders were tasked with rebranding the organization, refreshing the naira-for-crude agreement, selling off certain company assets, rebuilding investor trust, and maintaining political neutrality.

During an interview, Chinedu Ukadike, who serves as the National Publicity Secretary for the Independent Petroleum Marketers Association of Nigeria, expressed his approval regarding the extensive restructuring.

He mentioned that IPMAN welcomed the information warmly, noting that Tinubla is overhauling the oil and gas industry.

Ukadike instructed the newly formed NNPCL team to guarantee that the refineries return to full operational capacity, providing ample and cost-effective fuel for Nigerians.

He encouraged Ojulari and his team to make sure that the refineries in Port Harcourt, Warri, and Kaduna are utilized effectively to generate additional employment opportunities for the general population.

We welcomed the news enthusiastically. Mr. President is revamping and reshaping the oil and gas sector. All measures being taken aim to ensure the effective enforcement of policies along with the execution of the Petroleum Industry Act.

What is inevitable is change. Therefore, as members of the Independent Marketers Association, we embrace this.

“We extend our congratulations to the newly appointed individual and urge them to guarantee that all government-operated refineries in Port Harcourt, Warri, and Kaduna are generating sufficient fuel for economic needs. Achieving this will lead to job creation and increased availability of petroleum products,” he stated.

Ukadike urged Ojulari and the board to resolve the dispute between the NNPCL and the Dangote refinery regarding the naira-for-crude agreement.

He encouraged them to extend the agreement and resolve the crisis in order to facilitate seamless fuel distribution throughout the country.

“We would like the new GCEO to utilize this opportunity to reassess the naira-for-crude agreement; investigate the situation thoroughly and bring it to a close. This should improve the distribution process and bolster our economy,” Ukadike emphasized.

In like manner, the Nigerian Association of Petroleum Explorers expressed their support for Tinubu due to his recent appointments at NNPCL, stating that this move would significantly contribute to enhancing the efficiency, transparency, and profitability within Nigeria’s oil and gas sector as part of efforts to revamp the industry.

As stated by NAPE President Johnbosco Uche, the organization declared that the newly appointed board is tasked with improving operational efficiency, reviving investor trust, and boosting commercial feasibility. This initiative aligns perfectly with NAPE’s objectives and ambitions for the sector.

The explorers were confident that the newly formed team would contribute essential skills and knowledge to propel the oil and gas industry ahead.

Uche says that NAPE is pleased to see that the recently named board consists of experienced experts, featuring Austin Avuru, a past president of NAPE, who has occupied prestigious senior leadership roles in the oil and gas sector.

“We are excited about partnering with them to attain the anticipated expansion and advancement within the oil and gas industry,” the statement concluded.

The Nigerian Crude Oil Refineries Owners Association has asked the recently appointed board to take decisive actions to ensure that Nigeria attains self-reliance in local refining capabilities and achieves energy security.

The Publicity Secretary for CORAN, Eche Idoko, stated, “CORAN extends congratulations to the newly appointed board members of the NNPCL and the new General CEO. Their appointments coincide with a period during which global markets are undergoing realignment, specifically highlighting increased focus on Nigeria’s market, notably within the midstream and downstream segments.”

We are optimistic that the newly appointed NNPCL board will take strong steps towards making Nigeria self-reliant in domestic refining and enhancing energy security. It’s essential for us to witness an even more proactive NNPCL that collaborates effectively with local investors, particularly within the growing midstream sector. We anticipate they will build upon the achievements of the previous government and work diligently to transform Nigeria into a major refining center.

In a similar vein, Billy Gillis-Harry, who serves as the National President of the Petroleum Retailers Outlets Owners Association of Nigeria, requested the board to guarantee a daily output of 700,000 barrels exclusively for local refinement with the aim of attaining energy self-sufficiency.

“Our message is straightforward: where Mele Kyari’s administration left off, the new board needs to carry it forward to greater heights. It is essential that they guarantee growth within the oil and gas industry, contributing significantly to Nigeria’s economy,” stated Gillis-Harry.

We aim to initiate conversations about expanding our local refining capabilities. We propose starting with an additional 700,000 barrels per day exclusively for internal refinement. Achieving this will necessitate collaborative efforts between communities and entities like the NNPCL along with governmental bodies to ensure mutual benefits.

Hope rising

In the meantime, Professor Emeritus Wumi Iledare, a seasoned professional from the oil and gas sector, has voiced his strong belief that the newly appointed leaders of NNPC should not disappoint, as their failure would send a negative message to the nation.

During an interview with our correspondent, Iledare stated that this marked the first instance where the NNPC had a board devoid of political influence, showing confidence in the capabilities of what he referred to as “seasoned experts.”

“Ultimately, NNPCL now boasts a board predominantly composed of non-partisan individuals who possess significant expertise and professionalism. This marks the beginning of a fresh chapter for NNPCL as they aim to revitalize, reorganize, and recover themselves in alignment with the objectives outlined in PIA 2021,” he stated.

Iledare outlined his expectations for the immediate priorities of the new board: “The first priority is resolving the issue of the naira-for-crude arrangement with local refineries; second is offering NNPCL shares to the general public but capping how much an individual can purchase and limiting corporate buyers; third involves offloading stakes in joint ventures held by departing international oil companies; fourth, revitalizing, restructuring, and rejuvenating NNPC Limited according to the objectives set out in the PIA.”

He encouraged Ojulari to “foster an economies of scale mindset and address the evident inefficiencies preventing the full potential of NNPCL.”

He stated, “I personally know Bayo Oujulari, Austin Avuru, Yusuf Usman, Rabiu Bello, David Ige, and Babs Omotowa as professionals. My hope is that Nigeria doesn’t end up with all of them. It would be akin to having six CEOs.”

Regarding the dismissal of Kyari, the scholar suggested that “he was thrust into difficult circumstances due to his appointment by former President Muhammadu Buhari, which bypassed the procedures set forth by the PIA.”

He went on to say that it is challenging for a leopard to alter its spots without undergoing surgery.

Transitioning from GMD to GCEO proved challenging for him, compounded by having to work with an inexperienced board forced upon him. His approach towards risk was commendable; he had a penchant for taking risks despite political limitations and focusing heavily on transactions. It would have been wise for him to resign just as his CFO did. My best wishes go out to him.

“Despite his departure, this marks the beginning of a new epoch for NNPCL. This is the first instance where the organization boasts an apolitical board that thoroughly grasps the principles required to adopt a business-oriented mindset,” Iledare stated.

Farewell for Kyari

After the recent appointments, the management and employees of NNPC greeted Ojulari and the Board of Directors on Wednesday.

The company’s spokesman, Olufemi Soneye, stated, “We express deep gratitude to the departing CCEO, Mr Mele Kyari, along with the previous board members, for their unselfish and committed service to both the company and the country.”

Mr. Kyari’s guidance and unwavering dedication have made an enduring impact on NNPC Ltd., and we genuinely appreciate his exceptional contributions.

We hope for his and all outgoing Board Members’ ongoing success and fulfillment in their future pursuits.

PUNCH has reported that the dismissal of Kyari occurred when the NNPC declined to sell crude oil to the Dangote refinery in Naira, as instructed by the President the previous year.

The apparent breakdown of the agreement resulted in halting the sale of fuel naira to domestic distributors in Nigerian currency.

This subsequently resulted in an increase in fuel costs to N930 per litre or higher, varying by area.

Tompolo lauds Tinubu

The Chairman of Tantita Security Services Nigeria Limited, Government Ekpemupolo, also known as Tompolo, has praised President Tinubu for his “meticulous choice of experienced experts” for the newly appointed Management Board of the NNPCL.

He similarly offered his congratulations to the recently named 11-person board and leadership of the NNPCL.

In a statement personally signed and provided to reporters in Warri on Wednesday, Tompolo, who holds the title of Ibe-Ebidouwei of the Ijaw Nation, highlighted that Tantita Security Services Nigeria Limited acknowledged the recent appointments as “a crucial turning point for both the NNPCL and the broader Nigerian oil and gas sector.”

The statement said, “This choice made by Mr. President highlights his administration’s commitment to making sure that only capable individuals are responsible for maximizing the immense advantages of our country’s petroleum and natural gas industry.”

The tasks and prospects facing this newly appointed leadership team are substantial, yet we have full confidence in their capability to steer the continuous reshaping of the NNPCL towards even greater achievements.

During their leadership, we are confident that the President’s objective of enhancing local refining capabilities and boosting Nigeria’s crude oil production to exceed 2 million barrels per day within a short period will be achieved and surpassed.

Just like we have consistently done, TSSNL continues to strongly commit to collaborating with the NNPCL to protect and boost Nigeria’s oil production abilities. With our specialized knowledge in securing oil assets and our long-standing presence in the Niger Delta region, we stand ready as a dependable partner to ensure that the country’s resources are protected and utilized effectively for the shared advantage of all parties involved.

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