Presidency Reveals Why Tinubu Sacked Kyari, NNPCL Board

In a decisive move aimed at revitalizing Nigeria's oil sector, President Bola Tinubu has dismissed Mele Kyari from his role as Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), along with the entire board. This significant leadership change, effective April 2, 2025, underscores the administration's commitment to enhancing the performance and efficiency of the nation's pivotal oil corporation.

Rationale Behind the Leadership Overhaul

The presidency has articulated that this restructuring stems from a pressing need to address longstanding operational inefficiencies and to meet critical production targets within the NNPCL. An anonymous government official highlighted that the previous leadership's inability to drive substantial progress necessitated this change. The official stated, "The president made this decision purely on performance grounds. We need a different approach because the previous leadership was not delivering the results expected. The NNPC has remained stuck in the same cycle for years, failing to maximize oil production and optimize our assets. It was clear that we needed a fresh direction."

This sentiment reflects a broader concern regarding the NNPCL's stagnation in crude oil production and asset optimization. The administration has set ambitious targets to elevate crude oil production to two million barrels per day by 2027 and three million barrels daily by 2030, with gas production goals of 10 billion cubic meters by 2030. Achieving these objectives is deemed essential for bolstering Nigeria's economy, given that oil exports constitute approximately 90% of the nation's exports and contribute significantly to government revenue.

Appointment of New Leadership

To spearhead this transformative agenda, President Tinubu has appointed Bashir Ojulari, a seasoned former Shell executive, as the new GCEO of NNPCL. Ojulari's extensive experience in deepwater exploration and production positions him well to navigate the complexities of the oil and gas industry. His appointment is complemented by the selection of Ahmadu Musa Kida, another accomplished executive from Total, as the new board chairman. This leadership duo is expected to conduct a comprehensive strategic review of NNPCL's assets to ensure alignment with value maximization objectives.

Strategic Objectives and Challenges Ahead

The newly appointed leadership faces the formidable task of restructuring NNPCL to enhance operational efficiency and transparency. This may involve streamlining the company's workforce, currently numbering around 5,700 employees, and divesting non-core assets such as petrol stations and underperforming refineries. Addressing these challenges is critical, as NNPCL has historically grappled with issues of corruption, political interference, and a lack of transparency. Notably, the company only began publishing its financial results in 2021 and recently disclosed a $6 billion debt to fuel suppliers, highlighting the urgent need for financial prudence and accountability.

Furthermore, the new leadership must navigate the intricate landscape of ethnic politics within NNPCL and potential resistance from influential stakeholders. Analysts emphasize that fostering transparency and implementing structural reforms are imperative to position NNPCL for a planned initial public offering (IPO) within the next 12 to 15 months. Such a move could attract fresh capital and support Nigeria’s broader economic recovery efforts.

Industry and Public Reactions

The overhaul of NNPCL's leadership has elicited varied reactions from industry stakeholders and the public. Some view the appointment of private sector executives as a positive step towards aligning NNPCL's operations with global best practices and enhancing its commercial viability. The emphasis on appointing technocrats rather than political figures is seen as a deliberate strategy to infuse the corporation with expertise and a performance-driven culture.

Conversely, there are concerns regarding the potential challenges that the new leadership may encounter, particularly in implementing reforms that could disrupt entrenched interests. The success of these reforms will largely depend on the administration's ability to provide unwavering support to the new leadership and to foster an environment conducive to change.

Broader Implications for Nigeria's Oil Sector

This leadership change occurs against the backdrop of Nigeria's ongoing efforts to revitalize its oil sector, which has been plagued by declining production levels, large-scale theft, and infrastructural challenges. In 2022, the country's oil production fell below one million barrels per day for the first time in over three decades, underscoring the urgency of implementing effective reforms. The Tinubu administration's proactive approach in restructuring NNPCL's leadership signals a commitment to addressing these issues head-on and to positioning the corporation as a catalyst for national economic growth.

Moreover, the focus on enhancing transparency and corporate governance within NNPCL aligns with broader objectives of attracting foreign investment and fostering a more favorable business environment in Nigeria's oil and gas sector. By addressing systemic issues and demonstrating a commitment to reform, the administration aims to restore investor confidence and to stimulate economic development.

Conclusion

President Bola Tinubu's decision to overhaul the leadership of NNPCL reflects a strategic initiative to confront the longstanding challenges within Nigeria's oil sector. The appointment of industry veterans like Bashir Ojulari and Ahmadu Musa Kida is indicative of a deliberate effort to infuse the corporation with expertise and to drive a performance-oriented culture. As the new leadership embarks on this transformative journey, their success will be measured by their ability to implement reforms that enhance efficiency, transparency, and production capacity within NNPCL. The outcomes of these efforts hold significant implications not only for the corporation but also for the broader economic trajectory of Nigeria.