By Kunle Akinlami
He is perhaps the most vilified Chief Executive that ever headed the nation’s oil corporation, the Nigerian National Petroleum Corporation Limited, NNPCL, Mallam Mele Kyari is indeed a cat with nine lives. He has miraculously survived high-powered machnations from entrenched powerful interests that are milking the nation dry through many fraudulent schemes in the oil sector. Unmitigated media smear campaigns were unleashed on him with the purpose of frustrating him out of the system so that business as usual will continue, at the collective detriment of the Nigerian people. He remained unperturbed, focusing on the herculean task of repositioning the nation’s oil corporation for greater efficiency and profitability and also ensuring energy security for the nation.
Despite facing significant criticism, he keeps his eye on the ball, and continues to deliver on the RenewedHope mandate of President Bola Ahmed Tinubu administration with regard to oil sector reforms and energy availability and security. Under the leadership of Mele Kyari, NNPCL, has made impressive strides in revitalising Nigeria’s oil sector.
Since his assumption into office as the Group Chief Executive Officer (GCEO) of NNPCL in 2019, Kyari has led a transformation that has improved crude oil production, enhanced transparency, and addressed long-standing inefficiencies within the corporation.
One of Kyari’s most notable achievements is the substantial increase in Nigeria’s daily crude oil production. For instance, in the last quarter of 2022, Nigeria’s oil output had plummeted to as low as 900,000 barrels per day (bpd), a sharp decline from its OPEC quota. However, by July 2024, under Kyari’s leadership, the country boosted its production to 1.53 million bpd, including condensates. This achievement represents a significant recovery for Nigeria’s oil sector and further underscores the efforts by Kyari to ensure the country meets its production goals, thereby increasing the foreign earnings for NIgeria.
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It is imperative to also recall that when Kyari took over the reins at NNPCL, the corporation faced serious challenges. Nigeria’s oil production was suffering due to rampant oil theft, pipeline vandalism, and declining investments in oil infrastructure. The country was not only struggling to meet its OPEC quota but also losing revenue that could be used for national development.
Kyari quickly took action to reverse the situation. By implementing security measures to curb pipeline vandalism and tackling oil theft head-on, the NNPCL made significant progress in addressing these challenges. One of the key successes during this period was the discovery of a four-kilometer illegal pipeline connected to the Forcados Terminal, which had been siphoning oil into the sea for nearly nine years. This illegal operation, once uncovered, was shut down, contributing to the overall increase in oil production.
Through these targeted actions, Kyari’s leadership has succeeded in stabilizing and gradually increasing Nigeria’s daily production. By mid-2024, the country had regained its position as Africa’s leading oil producer, surpassing Angola and Algeria.
Beyond increasing production, Kyari’s leadership has had a profound impact on indigenous oil operators in Nigeria. A clear example of this is the support provided to First E&P, a Nigerian oil company that was on the brink of collapse. First E&P had acquired the Anyala and Madu oil fields, located offshore in the Niger Delta, from Chevron but faced a significant financial shortfall when its multinational partner withdrew from the project.
At this critical juncture, NNPCL stepped in to save the project. Kyari’s team reviewed the company’s development plan and committed to funding 100% of the required $725 million for the fields’ development. This bold move not only saved First E&P but also helped bring an additional 60,000 barrels of oil per day into Nigeria’s overall production.
This intervention highlights NNPCL’s new role under Kyari as not just a national oil company but as a critical partner for indigenous oil operators. By providing both financial backing and operational flexibility, NNPCL has enabled Nigerian companies to thrive and contribute to the country’s oil production.
One of Kyari’s most transformative initiatives at NNPCL has been the introduction of the Transparency, Accountability, and Performance Excellence (TAPE) agenda. Launched shortly after he assumed office, the TAPE agenda represents a bold commitment to opening up NNPCL’s operations to public scrutiny and improving its overall performance.
Under the TAPE agenda, NNPCL made history by publishing its audited financial statements for the first time in 44 years. This unprecedented move has increased public trust in the corporation, as stakeholders and Nigerians alike can now access detailed financial and operational reports. Furthermore, NNPCL began releasing monthly financial and operations reports, further enhancing transparency and allowing for real-time assessment of the corporation’s performance.
Kyari’s dedication to transparency has not only improved NNPCL’s public image but has also led to significant financial gains. In 2020, NNPCL reported its first profit in over four decades, recording a profit of N287 billion. This success continued in 2021, with the company announcing an even higher profit of N674.1 billion. By 2023, the company’s financial performance had skyrocketed, with a reported profit of N2.5 trillion for the 16-month period ending in December 2022.
These achievements reflect Kyari’s vision of transforming NNPCL into a profitable and efficient national oil company that delivers value to the Nigerian people. His leadership has demonstrated that transparency and accountability can drive both financial success and operational efficiency.
Despite challenges facing the sector, which could be traced to years of neglect of global best practices in the oil sector, inadequate critical infrastructure, security threats to oil pipelines and significant disruption being experienced by the global oil industry, which is reflected in the oil prices fluctuations, to the lingering effects of the COVID-19 pandemic, Mele Kyari’s tenure as GCEO of NNPCL has been marked by remarkable achievements in increasing oil production, supporting indigenous oil companies, and improving transparency and accountability. His leadership has brought stability to a sector that was previously mired in inefficiency, oil theft, and opaqueness.
Under his guidance, NNPCL has transformed into a more transparent, profitable, and performance-driven organization. The TAPE agenda has set new standards for corporate governance within the company, while Kyari’s commitment to supporting indigenous oil operators has boosted Nigeria’s overall production capacity.
Kyari’s leadership has laid the foundation for a more resilient and successful oil sector in Nigeria. His efforts are not just about increasing production; they represent a broader vision of ensuring that Nigeria’s oil resources are managed in a way that benefits all Nigerians and contributes to the country’s long-term economic stability.
In appreciation of his giant strides at reforming the sector, a group, focused on tackling rising cases of oil theft and pipeline vandalism in the oil rich Niger Delta region, the Niger Delta Anti-Pipeline Vandalization and Oil Theft Task Force Group (NAVOTTFG) commended the NNPCL and its subsidiaries for stabilising the sector, through enablement of thriving operational environment.