President Bola Tinubu’s decision to remove Mele Kyari and other board members of the Nigerian National Petroleum Corporation Limited (NNPCL) comes in response to growing concerns over performance issues and unmet production targets, according to sources close to the presidency.
On Wednesday, Tinubu unexpectedly dismissed Kyari, who had been at the helm of the national oil company since 2019.
This move is part of a broader restructuring strategy designed to enhance Nigeria’s oil and gas production.
In a statement released early in the morning, Bayo Onanuga, Special Adviser to the President on Information and Strategy, confirmed that all other board members appointed alongside Kyari in November 2023, including Pius Akinyelure, had also been removed.
Onanuga announced that Bashir Ojulari would take over as the new Group CEO, with the change effective from April 2, 2025.
The new 11-member board includes Ojulari as CEO, while Musa Ahmadu-Kida will serve as the non-executive chairman.
Sources familiar with the decision noted that the reshuffle was driven by performance-related concerns, citing the former team’s inability to meet key objectives.
An official, speaking on condition of anonymity, said, “The President chose to make this change due to performance. The previous leadership was not moving the industry forward. We needed fresh ideas, and the new appointments offer a renewed energy.”
The new team is composed entirely of seasoned professionals rather than politicians, marking a shift towards greater technical expertise.
“This is the first time the board is made up entirely of industry experts, each with years of experience,” the official added.
One source emphasized that the reshuffle wasn’t related to Kyari’s age but was instead focused on fostering a new approach to achieve the President’s ambitious production targets.
“The President is looking for fresh perspectives to hit our production goals,” the source explained.
These include ramping up crude production to 3 million barrels per day by 2030 and stabilizing at 2 million barrels per day by 2027.
Additionally, the President aims to achieve a production target of 10 billion cubic meters of gas by 2030.
President Tinubu is also focused on evaluating Nigeria’s oil blocks to improve production efficiency, identifying those with low output.
The new board includes Adedapo Segun, who replaced Umaru Isa Ajiya as CFO in November, as well as representatives from various Nigerian geopolitical regions: Bello Rabiu (North West), Yusuf Usman (North East), Babs Omotowa (North Central), Austin Avuru (South-South), David Ige (South West), and Henry Obih (South East).
Lydia Jafiya, Permanent Secretary at the Ministry of Finance, will represent the Ministry of Finance, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.
Onanuga confirmed that the changes are effective immediately, with the new leadership tasked with conducting a thorough review of NNPCL’s assets and joint ventures.
The government has set a goal to increase investments in the oil and gas sector from $17 billion to $30 billion by 2027 and eventually to $60 billion by 2030.
The new leadership will also focus on increasing NNPCL’s refining capacity, with a target of refining 200,000 barrels per day by 2027 and growing this to 500,000 barrels per day by 2030.
Musa Ahmadu-Kida, the new board chairman, brings extensive experience, having held senior positions at Total Exploration and Production.
Ojulari, the new Group CEO, comes from Renaissance Africa Energy, where he was integral to a $2.4 billion acquisition of Shell Petroleum’s Nigerian assets.
Despite the leadership changes, President Tinubu expressed gratitude to the former board, acknowledging their efforts in rehabilitating the Port Harcourt and Warri refineries, which are now operational after lengthy shutdowns.
Nigeria has faced persistent challenges in meeting its OPEC production quotas, hindered by pipeline vandalism, underinvestment, and aging infrastructure.
While some reforms were introduced during Kyari’s tenure, production still fell short of targets.
The new leadership faces a crucial challenge in revitalizing the country’s refineries.
Industry experts have urged the team to ensure the refineries in Port Harcourt, Warri, and Kaduna operate at full capacity, which would boost jobs and help make fuel more affordable for Nigerians.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), welcomed the leadership shakeup, praising the reforms in the sector.
He urged the new board to tackle the longstanding issues surrounding the Naira-for-Crude deal and improve fuel distribution.
The Nigerian Association of Petroleum Explorationists (NAPE) also endorsed the new appointments, calling for greater efficiency, transparency, and profitability within the oil and gas sector.
The association expressed confidence that the new leadership would bring about the necessary reforms.
The Crude Oil Refinery-owners Association of Nigeria (CORAN) called on the new board to prioritize domestic refining and work closely with local investors to increase refining capacity.
Similarly, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria, urged the new leadership to focus on local refining and set a target of 700,000 barrels per day for domestic consumption.
Oil and gas expert Professor Wumi Iledare expressed optimism about the new team, noting that it signals a shift towards a more professional, less politically-driven approach to managing NNPCL.
He outlined key areas of focus, including resolving the Naira-for-Crude issue, listing NNPCL shares, and driving local refining efforts.
While acknowledging the challenges Kyari faced during his tenure, Iledare expressed hope that the new leadership would successfully implement the reforms necessary to propel Nigeria’s oil and gas sector forward.
