WHY TINUBU SACKED KYARI, DISSOLVED NNPCL BOARD

WHY TINUBU SACKED KYARI, DISSOLVED NNPCL BOARD

There are strong indications that President Bola Ahmed Tinubu reluctantly approved the sack of Mele Kolo Kyari as Group Chief Executive Officer (CEO) of the Nigerian National Petroleum Company Limited (NNPCL), following mounting concerns about some aspects of the company’s operations.

The President announced Kyari’s removal alongside the dissolution of the NNPCL board in a statement issued early Wednesday.

Bayo Onanuga, the Special Adviser to the President on Information and Strategy, confirmed that Tinubu “approved a sweeping reconstitution of the NNPCL board, removing Chairman, Chief Pius Akinyelure and Group CEO, Mallam Mele Kolo Kyari.

“President Tinubu removed all other board members appointed with Akinyelure and Kyari in November 2023”, the statement said.

In their place, Tinubu appointed Engineer Bashir Bayo Ojulari as Group CEO and Ahmadu Musa Kida as non-executive Chairman.

“Adedapo Segun, who replaced Umaru Isa Ajiya as Chief Financial Officer last November, has been appointed to the new board by President Tinubu.

“Six non-executive directors represent Nigeria’s geopolitical zones: Bello Rabiu from the North West, Yusuf Usman from the North East, and Babs Omotowa, former MD of the Nigerian Liquefied Natural Gas (NLNG), representing North Central.

“President Tinubu appointed Austin Avuru from the South South, David Ige from the South West, and Henry Obih from the South East.

“Mrs Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, will represent the ministry, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.

“All the appointments are effective today (Wednesday), April 2,” the statement read in part.

Kyari was first appointed as Group Managing Director (GMD) of NNPC on July 7, 2019, by President Muhammadu Buhari. He completed his four-year term and was reappointed by President Tinubu on October 16, 2023, before his removal.

Sack muted months ago

Although the presidency did not specify the reason for the board’s reconstitution, sources revealed that Kyari’s sack had long been anticipated but delayed for reasons known only to the president. Some sources suggested that his involvement in some strategic projects of the president may have influenced the delay.

Kyari, who turned 60 on January 8, was reportedly slated for removal before the end of that month, but the president decided to hold off the announcement, despite already constituting the new board. Insiders noted that the delay, rather than the dismissal itself, was the more surprising development.

An online medium, EmpoweredNewswire, reported on February 6, 2025 that the president had finalised plans to reorganise the NNPCL board. The medium accurately predicted the appointments of Mr. Bayo Ojulari as new Group CEO and Mr. Ahmadu Musa Kida as board chairman.

‘Why he stayed in office so long’

One source, speaking anonymously due to the sensitive nature of the matter, asked, “The key question observers should ask is why Mele Kyari stayed in office for so long before his removal on Tuesday.”

The source pointed out that President Tinubu had replaced the heads of several prominent government agencies, including the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Federal Inland Revenue Service (FIRS), the Federal Airports Authority of Nigeria (FAAN), and the Nigeria Customs Service (NCS).

“Yet, Kyari remained the longest-serving CEO of the NNPCL. His tenure extension, despite changes in other agencies, was unusual”, the source added.

Under Kyari’s leadership, NNPCL facilitated the acquisition of OVH Energy Marketing, which operated Oando-branded retail stations. The deal, announced in October 2022, included over 380 filling stations, a reception jetty with a monthly capacity of 240,000 metric tonnes, eight liquefied petroleum gas plants, three lube blending plants, three aviation depots, and 12 warehouses.

The acquisition, valued at $325.09 million (about N140.55 billion), was seen as a significant expansion move for NNPCL. One source described the deal as beneficial for both NNPCL and its business strategy.

“Before the deal, NNPCL had limited presence in aviation fuel and lubricants. After acquiring Oando, the company’s profile improved significantly,” the source said. “This boosted Kyari’s reputation as an effective leader within the industry.”

Concerns over efficiency, accountability

Despite these strategic initiatives, Kyari’s removal has been linked to ongoing concerns about refinery operations and other industry challenges. Some sources suggested that inefficiencies at the Port Harcourt and Warri refineries, as well as NNPCL’s relationship with the Dangote Refinery, contributed to the decision.

“The president felt that these issues should have been better managed”, said one source familiar with the matter.

The reconstitution of the board is seen as part of efforts to enhance efficiency, transparency, and alignment with Nigeria’s economic priorities. Kyari’s tenure coincided with growing concerns over corporate governance at NNPCL. The transition of NNPC into a limited liability company under the Petroleum Industry Act (PIA) 2021 aimed to improve its commercial viability, but some stakeholders were said to have pointed out that key reforms were not being effectively implemented.

One major issue during Kyari’s tenure was the management of the fuel subsidy regime, which had been a source of national debate. The subsidy, managed by NNPCL, was widely regarded as financially unsustainable, leading the government to take steps toward its removal.

For instance, in 2019, the nation spent about N154 billion on fuel subsidy. But by the end of 2022, it was reported that fuel subsidy gulped N4 trillion in that year alone.

Sources said that Kyari’s leadership also struggled with production levels and revenue generation, with crude oil output averaging 1.5 million barrels per day, far below target.

This has happened despite the Kyari-led management’s investment in digital tracking equipment, which is said to be monitoring oil exploration activities online real-time.

Rehabilitation of refineries

Another key area of concern, some sources said, are the failure to bring the nation’s refineries back to life, despite dissuading the Buhari administration from its plan to sell them off, and committing $1.5 billion to the Port Harcourt Refinery alone.

NNPCL’s inability to go to the capital market

It was widely acknowledged that Kyari led the NNPC’s transition from the status of a public corporation to a limited liability company. However, there have been concerns that the company’s operations were still not efficient. Over time, state governments have complained about non remittances of revenue to the Federation Account. This is despite earlier impressions that the NNPCL had already been out of its loss making status. It declared a loss of about N803 billion for its 2018 operations and N1.7 trillion for 2019.

The Dangote Refinery debacle

The NNPCL’s relationship with Dangote Refinery also raised concerns, especially when the refinery became operational. The breakdown of the Naira-for-crude deal, ordered by the president last year, was seen as a contributing factor in Kyari’s departure.

Before this, there had been complaints about Kyari’s handling of the crisis with Dangote Refinery, as well as ongoing issues with the Port Harcourt Refinery.

In March, the National Bureau of Statistics released a report showing that Nigeria’s petrol imports continued to rise, despite increased domestic refining capacity. The report revealed that Nigeria imported N3.3 trillion worth of petrol in the last quarter of 2024, making petrol the country’s most traded import.

Energy analysts argue that Nigeria’s continued reliance on imported fuel is a drain on the country’s resources, exacerbating its economic challenges.

‘Board’s weakness hastened dissolution’

The dissolution of the NNPCL board is expected to bring fresh perspectives to the company, with a focus on improving long-term objectives. Sources noted concerns over the board’s weakness in countering some of Kyari’s excesses.

“The board’s perceived weakness in checking Kyari’s power was partly due to his deep knowledge of the company’s operations, having risen through the ranks,” said one analyst.

The new board members, who are mostly technocrats, are expected to implement reforms aimed at improving transparency, aligning operations with national economic goals, and strengthening corporate governance.

As Nigeria seeks to stabilise its fiscal base and accelerate gas commercialisation, industry experts believe that a more efficient and accountable NNPCL will play a central role in meeting these objectives.

However, analysts warn that the success of these changes will depend on the Tinubu administration’s faithfullness to enforcing corporate governance standards. This, the analysts say, is the most critical requirement to promoting operational efficiency within the NNPCL.

NNPCL board

Stakeholders set agenda for new NNPCL board, management
From Abdullateef Aliyu, Lagos

Meanwhile, stakeholders and industry players have set an agenda for the new management and board of the NNPCL, urging them to prioritise the sustainability of the industry.

Marketers and experts welcomed the appointments, describing the new board and management as composed of industry professionals. However, they called on the federal government to shield the board from political interference.

Speaking with our correspondent, Professor Emeritus of Petroleum Economics, Wumi Iledare, said the NNPCL now has one of the most competent boards in its history.

“The government should allow them to function without political interference. If they are given the space to operate, they will likely succeed in accomplishing the objectives of the Petroleum Industry Act (PIA).

“Of course, unforeseen challenges could arise, but when it comes to their preparedness to lead NNPCL in line with the PIA’s intentions, I believe success is more likely than not”, he said.

Resolve naira-for-crude deal logjam

Iledare advised the new board to prioritise resolving issues surrounding the naira-for-crude deal with local refineries.

He also recommended selling NNPCL shares to the public with a cap on individual ownership and restrictions on corporate buyers. In addition, he urged the company to divest some of its joint venture shares in assets previously held by international oil companies (IOCs).

“The board must rekindle, restructure, and reposition NNPC Limited in line with the PIA’s objectives. They should resist the temptation to prioritise executive branch interests over those of the federation and remain focused on the company’s commercial mandate,” he said.

Sell fuel to us directly – Independent marketers

President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, said marketers have high expectations for the new board.

He urged NNPCL’s management to ensure independent marketers can buy fuel directly from the company instead of through intermediaries.

“There are many things we want them to do for us. First, they should ensure all refineries are fully operational and that we receive direct product allocations instead of going through third parties.

“They must make the refineries work so we can start refining what we consume. We are praying for the new leadership to succeed,” he added.

‘Boost efficiency and transparency’

Another oil and gas expert, Dr Ayodele Oni, said the reconstitution of the board aligns with the government’s efforts to transform NNPCL into a commercially driven and transparent entity that adheres to global best practices.

“To achieve this, the new administration must prioritise improving NNPCL’s operational efficiency, enhancing transparency, safeguarding oil infrastructure, attracting private investment, boosting local refining capacity, and fostering host community development.

“Transforming NNPCL into a competitive, cost-effective business requires cutting operational expenses, optimising crude oil production, and modernising refineries to reduce fuel imports.

“Increasing transparency and corporate governance through regular audits, clear financial reporting, and full disclosure of oil revenues is essential for attracting investment and rebuilding public trust,” he said.

Profiles of appointees

Bashir Bayo Ojulari

Ojulari, the new NNPCL GCEO, hails from Kwara State. Until his new appointment, he was Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company, which recently led a consortium of indigenous energy firms in the landmark acquisition of the entire equity holding in the Shell Petroleum Development Company of Nigeria (SPDC), worth $2.4 billion.

Ojulari is also an alumnus of Ahmadu Bello University, Zaria, according to the statement. He graduated with a degree in Mechanical Engineering. He worked for Elf Aquitaine as the first Nigerian process engineer to begin a stellar career in the oil sector.

From Elf, he joined Shell Petroleum Development Company of Nigeria Ltd in 1991, as an associate production technologist. Apart from working in Nigeria, he worked in Europe and the Middle East in different capacities as a petroleum process and production engineer, strategic planner, field developer, and asset manager.

In 2015, he became the managing director of Shell Nigeria Exploration and Production Company (SNEPCO). During his career, he was chairman and member of the board of trustees of the Society of Petroleum Engineers (SPE Nigerian Council) and a fellow of the Nigerian Society of Engineers.

Ahmad Musa Kida – Chairman

The new board chairman, Ahmadu Musa Kida, hails from Borno State and is an alumnus of Ahmadu Bello University, Zaria, where he received a degree in civil engineering in 1984.

He also obtained a postgraduate diploma in petroleum engineering from the Institut Francaise du Petrol (IFP) in Paris.

He started his career in the oil industry at Elf Petroleum Nigeria and later joined Total Exploration and Production as a trainee engineer in 1985. Kida became Total Nigeria’s Deputy Managing Director of Deep Water Services in 2015.

He was an Independent Non-Executive Director at Pan Ocean-Newcross Group. Apart from his oil industry career, Kida is a former basketball player and the president of the Nigerian Basketball Federation (NBBF) board.

Adedapo Segun – CFO

The new Chief Financial Officer worked with Chevron as a Financial Services Manager for five years, 10 months before joining NNPC as a Group General Manager, Treasury. He was also Chief Finance and Investor Relations Officer and Executive Vice-President of Downstream.

Board members
Bello Rabiu, North West

Bello Rabiu was Chief Operating Officer/Group Executive Director, Upstream of NNPC, where he oversaw the activities of the Corporation’s Upstream businesses, including; National Petroleum Investment Management Services (NAPIMS), National Engineering and Technical Company (NETCO), Nigerian Petroleum Development Company (NPDC), Integrated Data Services Limited (IDSL) and NNPC Oil Field Services (NOFS).

He has a balanced knowledge of the Exploration & Production industry in Nigeria with capability which combines commercial/fiscal knowledge with operations.

Mr. Rabiu retired from the services of the Nigerian National Petroleum Corporation (NNPC) in July 2019 after 28 years of service.

Yusuf Usman, North East

He has over 30-year experience in the oil and gas industry. He started his career as Facilities/Project Engineer with Shell Petroleum Development Company (SPDC) Warri, from 1987 to 1993. In 1993, he joined the Services of Nigerian National Petroleum Corporation (NNPC) as Facilities Engineer. Between 1993 to October 2007, he rose to become the Technical Assistant to GGM NAPIMS.

During the period, Usman superintended over many projects, including the EKPE Gas Compression Station for EXXON Mobil JV in Houston, France & Nigeria, AMENAM/KPONO Oil and Gas Development for Total JV in Dubai, France & Nigeria, FEED of Brass and Olokola LNG Gas Supply Projects for CNL JV in Houston, USA, Gbaran/Ubie Central Gas Processing Facilities for SPDC/NNPC Joint Venture in UK and Nigeria, Dry Dock of MV Oloibiri for Texaco Overseas/NNPC JV in Greece, Usan FPSO Project for Total/NNPC Joint Venture in France, South Korea and Nigeria etc.

Babs Omotowa- North Central

Mr. Babs Omotowa is described as an international leader in the Energy industry across Europe, Africa, the United States of America, Asia, and the Middle East, in organisation leadership, commercial, strategy and operational roles spanning over 26 years.

Mr. Omotowa was the Managing Director/CEO of Nigeria LNG Limited (“NLNG”) for almost 5 years from December 2011 to September 2016.

Prior to joining Nigeria LNG, he served in different capacities including as a Vice-President, Shell Sub-Saharan Africa, Director at Shell Petroleum Development Company, a Non-Executive Director of West Africa Gas Pipeline Company, amongst others.

After his role as MD, NLNG, he served as a Vice President of Shell Global Upstream E&P and later as Special Adviser to the Shell Global Upstream Director.

Austin Avuru – Non-Executive Director, South-South

Austin Avuru is a Geologist by training who spent over 40 years in the Nigerian oil and gas sector and was Managing Director of Platform Petroleum Limited and in 2010, became the pioneer CEO of Seplat Ltd, a company he co-founded.

Under his leadership, Seplat was listed on the London Stock Exchange and Nigeria Stock Exchange. He retired as CEO of Seplat in 2020 and remains on the Board.

He is a fellow and past President of the Nigerian Association of Petroleum Explorationists (NAPE), a member of the American Association of Petroleum Geologists (AAPG), a member of the Society of Petroleum Engineers (SPE) and recipient of the Aret Adams Award. He is the author of “Politics, Economics & the Nigerian Petroleum Industry” and co-author of “Nigerian Petroleum Business, A Handbook”.

David Ige – Non-executive director (South West)

Dr. David Oluseyi Ige was former Group Executive Director of the NNPC. He has over 25 years work experience which cuts across Oil & Gas, management consulting and academics in world class organisations.

His experience spans Exploration, Development and Production of Oil and Natural Gas plus Midstream infrastructure and Downstream disposal of Hydrocarbons.

He is widely recognised for initiating and developing the Nigeria Gas Master Plan and policy, in response to a major threat to the nation’s energy agenda arising from lack of a viable gas infrastructure.

Henry Obih –Non-executive director (South East)

Engr. Henry Obih was former Group Executive Director/Chief Operating Officer, Downstream in NNPC until his retirement in 2019.

Prior to joining NNPC as GED/COO in 2016, Engr. Obih had a 22-year sojourn at Mobil Oil Nigeria (ExxonMobil Nigeria Downstream) and held several other high- profile positions across different areas across the organisation such as Operations, Customer Service and Logistics.

His recent leadership roles include board positions at Nigeria Gas Marketing Company Limited, Pipelines and Products Marketing Company Limited, NNPC Retail Limited, NIDAS Marine Limited (a subsidiary of NNPC in joint venture with Daewoo Industries South Korea), NIKORMA Limited (a subsidiary of NNPC in joint venture with Hyundai Heavy Industries South Korea) and Duke Oil Company Inc.