Tinubu Shakes Up NNPC Leadership, Sacks Kyari, Akinyelure-Led Board

President Bola Ahmed Tinubu has announced a complete overhaul of the board of Nigerian National Petroleum Company (NNPC) Limited, signalling a renewed push for efficiency and increased investment in the country’s oil and gas sector.

Chief Pius Akinyelure, the former chairman, and Mallam Mele Kolo Kyari, the former Group CEO, have been relieved of their duties, as have all board members appointed in November 2023.

The sweeping changes, announced in a Statehouse press release by Special Adviser to the President (Information & Strategy) Bayo Onanuga, include the formation of an 11-member board led by Ahmadu Musa Kida as non-executive chairman and Engineer Bashir Bayo Ojulari as the new Group CEO.

Invoking the powers granted by Section 59, subsection 2 of the Petroleum Industry Act of 2021, President Tinubu justified the restructuring as critical to meeting the NNPC’s and the energy sector’s ambitious targets.

These include improved operational efficiency, restored investor confidence, increased local content, sustained economic growth, and progress towards gas commercialisation and diversification.

“This is a watershed moment for the NNPC,” said a source within the presidency who spoke on condition of anonymity.

“The President is determined to realise the full potential of the oil and gas sector, and this new leadership team is tasked with carrying out a very ambitious agenda.”

Adedapo Segun, who took over as Chief Financial Officer from Umaru Isa Ajiya in November, is also on the new board. To fill out the non-executive director positions, President Tinubu appointed representatives from each of the country’s geopolitical zones:

Bello Rabiu (Northwest)
Yusuf Usman (Northeast)
Babs Omotowa (North Central) is the former Managing Director of Nigerian Liquified Natural Gas (NLNG).
Austin Avuru (South-South)
David Ige (SouthWest)
Henry Obih (Southeast)

Mrs. Lydia Shehu Jafiya, permanent secretary of the Federal Ministry of Finance, will represent the ministry on the board, and Aminu Said Ahmed will represent the Ministry of Petroleum Resources.

The reconstitution includes clear and challenging objectives for the new leadership. Building on the NNPC’s reported $17 billion in new investments in 2024,

President Tinubu intends to increase this to $30 billion by 2027 and a staggering $60 billion by 2030. In terms of production, the administration plans to increase oil production by two million barrels per day by 2027 and three million by 2030, as well as gas production by 8 billion cubic feet per day by 2027 and 10 billion by 2030.

He also anticipates an increase in refining capacity, which is projected to reach 200,000 by 2027 and 500,000 by 2030.

To get started on this ambitious vision, President Tinubu has given the new board an immediate action plan: a strategic portfolio review of NNPC-operated and joint venture assets to ensure alignment with value maximisation objectives.

Ahmadu Musa Kida, the new non-executive chairman, brings extensive experience in the oil industry. Kida, who attended Ahmadu Bello University (ABU) in Zaria and the Institut Francaise du Petrol (IFP) in Paris, has had a long career.

He began his career at Elf Petroleum Nigeria and worked his way up to Total Exploration and Production, eventually becoming Deputy Managing Director of Deep Water Services in 2015. He most recently served as an Independent Non-Executive Director at Pan Ocean-Newcross Group. Notably, Kida is currently the President of the Nigerian Basketball Federation (NBBF).

Engineer Bashir Bayo Ojulari, the new Group CEO and an ABU Zaria graduate brings extensive experience in engineering and oil sector management. He previously held the positions of Executive Vice President and Chief Operating Officer at Renaissance Africa Energy Company.

Renaissance recently led a consortium of indigenous energy firms in the historic acquisition of the entire equity holding in Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion, demonstrating his expertise in complex transactions and strategic partnerships. Ojulari has worked for Elf Aquitaine and Shell Petroleum Development Company and has held various positions in Nigeria, Europe, and the Middle East, including production engineer, strategic planner, field developer, and asset manager.

He has served as the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCO) since 2015.

The abrupt change in leadership has been met with mixed reactions. While some industry analysts welcome the new perspective and the emphasis on meeting ambitious goals, others are concerned about the potential disruption to ongoing projects and the learning curve faced by the new team.

“There is no doubt that the President’s vision is ambitious, but execution will be critical,” said Dr Chika Mba, an energy analyst at the Lagos-based consultancy firm Energy Insights.

“The new board must quickly assess the current landscape, identify bottlenecks, and implement strategies to attract the necessary investment and drive production growth.”

The coming weeks will be critical as the new board settles in and starts implementing its mandate. The success of this ambitious reform agenda will have a significant impact on Nigeria’s economic future, not just the NNPC.

President Tinubu thanked the outgoing board members for their service, highlighting their efforts to rehabilitate the Port Harcourt and Warri refineries.

According to Onanuga, this made it easier for them to resume petroleum product production after long periods of shutdown. He wished them success in their future endeavours.

The Tinubu administration made a bold move by reconstituting the NNPC Limited board. It remains to be seen whether this will result in tangible improvements in the oil and gas sector, but the stakes for Nigeria’s economic prosperity are unquestionably high.