Why Tinubu Axed Kyari and the NNPCL Board: Inside Sources Reveal

President Bola Tinubu has dismissed Mele Kyari and other board members of the Nigerian National Petroleum Corporation Limited due to growing concerns 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. This change was part of a larger restructuring effort announced by the Presidency with the aim of increasing Nigeria’s production of crude oil and natural gas.

"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 this restructuring was driven by performance evaluations. They suggested that previous leaders had been spinning their wheels and certain individuals had "grown into part of the issue instead of being part of the answer."

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 must be a fresh approach. You require new individuals to infuse renewed vitality into the system.

Observe them all. Each individual possesses the necessary skills. These are key players from within the industry, genuine specialists with deep knowledge of their field. They are not policymakers. For the very first time, our lineup consists entirely of technical experts.

Another official familiar with the development said the President believed that new blood was essential to jump-start production growth.

The official clarified, "Age isn’t the issue here with Kyari. The NNPCL operates under different regulations since it is a private entity rather than following standard civil service guidelines. Thus, his age doesn’t factor into this decision. It’s essential to bring in fresh minds capable of steering progress in innovative ways. The President outlined clear objectives for their performance, including targets related to oil production levels. Additionally, he requested an assessment of every block so they could identify those contributing effectively versus those falling short."

We need to enhance the productivity of those underperforming units. He has requested an assessment of all our resources over a specified timeframe with the aim of achieving better output. They must reach a production level of 3,000,000 barrels daily by 2030, maintaining stability at 2,000,000 barrels from now until 2027. Additionally, for natural gas, we should generate 10 billion cubic meters between now and 2030. These represent key performance indicators, which is precisely how these goals ought to be set.

“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.”

Adedapo Segun was also appointed to the new 11-member board. He took over from Umaru Isa Ajiya as 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).

According to Onanuga, Mrs Lydia Jafiya from the Ministry of Finance will serve as the representative for her department on the newly formed board, whereas Aminu Said Ahmed will represent the Ministry of Petroleum Resources.

“Everyone’s appointments are 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 the sector last year, Onanuga stated that the government aims to boost these investments to $30 billion by 2027 and $60 billion by 2030.

In addition, President Tinubu anticipates that the newly appointed board will boost NNPC’s contribution to Nigeria’s crude oil refining capacity to 200,000 barrels per day by 2027 and aims for an increase to 500,000 barrels per day 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 took on the role of Deputy Managing Director for Deep Water Services at Total Nigeria. The previous year, he was appointed as an Independent Non-Executive Director at Pan Ocean-Newcross Group.

Ojulari, who has been appointed as the new CEO of NNPC Limited Group, comes from Kwara State. Prior to this position, he served as the Executive Vice President and Chief Operating Officer at Renaissance Africa Energy Company. Recently, Ojulari’s company, Renaissance, spearheaded 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. This effort allowed these plants to restart the manufacturing of petroleum products following extended periods of downtime.

Nigeria, formerly the top oil producer in Africa, has faced challenges in meeting its production targets set by OPEC over several years. Despite OPEC numbers typically indicating a target 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 pipeline sabotage, 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 set targets.

Refineries revamp

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

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

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

During an interview, Chinedu Ukadike, who serves as the National Publicity Secretary for the Independent Petroleum Marketers Association of Nigeria, referred to the extensive restructuring as a positive move.

He mentioned that IPMAN greeted the information most warmly, noting that Tinubua is overhauling the oil and gas industry.

Ukadike urged the newly appointed NNPCL team to guarantee that the refineries return to full operation, providing ample and cost-effective fuel for 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 inevitable is change. Therefore, we, the Independent Marketers Association, 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 not only lead to job creation but also enhance the availability of petroleum products," he stated.

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

"We also hope that the new GCEO will utilize this opportunity to reassess the naira-for-crude agreement; investigate the matter thoroughly and bring closure to it, thereby improving the distribution process and bolstering our economy," Ukadike emphasized.

In like manner, the Nigerian Association of Petroleum Explorers applauded Tinubu for his recent appointments to the NNPCL board, stating that this move was a significant stride toward enhancing the efficiency, transparency, and profitability of Nigeria’s oil and gas sector.

As stated by NAPE President Johnbosco Uche, the organization noted that the newly appointed board is tasked with improving operational efficiency, reviving investor trust, and boosting commercial feasibility. They emphasized that these objectives are consistent with NAPE’s aims 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 states that NAPE is pleased to see that the recently named board consists of experienced experts, featuring Austin Avuru, a past president of NAPE with notable high-level roles in the oil and gas sector.

"We are excited about partnering with them to attain the targeted 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 boldly act toward guaranteeing that Nigeria attains self-reliance in local refining capabilities 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 clear: where Mele Kyari’s administration left off, the new board needs to carry forward with even greater progress. It is essential that they guarantee growth within the oil and gas industry, ensuring it delivers the economic benefits it should for Nigeria," stated Gillis-Harry.

We aim to initiate conversations about expanding our local refining capabilities. A potential starting point could be an enhancement of 700,000 barrels per day specifically allocated for internal refining purposes. Achieving this will necessitate collaborative efforts between communities, the NNPCL, and the government to ensure mutual benefits.

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 stated, "Bayo Oujulari, Austin Avuru, Yusuf Usman, Rabiu Bello, David Ige, and Babs Omotowa are individuals I am familiar with professionally. My hope is that Nigeria doesn’t end up with them. They would be akin to having six CEOs."

Regarding the dismissal of Kyari, the scholar suggested that "he was cast into the flames as he was appointed by former President Muhammadu Buhari without adhering to the PIA appointment procedures."

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 tasks and prospects facing this new leadership team are substantial, yet we have 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 swiftly will be achieved and surpassed.

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

Provided by SyndiGate Media Inc. Syndigate.info ).