The newly reconstituted board of Nigerian National Petroleum Company Limited (NNPCL) yesterday got off to a mix of applause and targets set by the government and the public.
In a decisive move aimed at bolstering Nigeria’s oil and gas sector, President Bola Ahmed Tinubu yesterday reconstituted the board of NNPCL.
The overhaul saw the exit of board chairman, Chief Pius Akinyelure and Group Chief Executive Officer (GCEO), Mallam Mele Kolo Kyari, along with all the members appointed in November 2023.
President Tinubu appointed Ahmadu Musa Kida as the non-executive chairman and Engineer Bashir Ojulari as the GCEO.
The newly constituted 11-member board also includes Adedapo Segun, who retains his position as Chief Financial Officer.
Also, six non-executive directors were appointed to represent the country’s geopolitical zones, including Bello Rabiu, Northwest; Yusuf Usman, Northeast; Babs Omotowa, Northcentral; Austin Avuru, Southcouth; David Ige, Southwest and Henry Obih, who represents the Southeast zone.
Additionally, Mrs. Lydia Shehu Jafiya from the Federal Ministry of Finance and Aminu Ahmed from the Ministry of Petroleum Resources will serve as representatives of their respective ministries.
Setting the tone for the new board, President Tinubu handed out an immediate three-point action plan to the new board: to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives, to increase production and investments and to boost domestic refining.
The President, who invoked Section 59, subsection 2 of the Petroleum Industry Act, 2021 for the new appointments, emphasised the necessity of further restructuring of NNPCL to enhance operational efficiency, restore investor confidence, boost local content, and accelerate economic growth.
Since 2023, the Tinubu Administration has implemented oil sector reforms to attract investment. Last year, NNPC reported $17 billion in new investments within the sector.
The government now envisions increasing the investment to $30 billion by 2027 and $60 billion by 2030.
It also targets raising oil production to two million barrels daily by 2027 and three million daily by 2030. Concurrently, the government wants gas production jacked to 8 billion cubic feet daily by 2027 and 10 billion cubic feet by 2030.
The new board is also expected to increase NNPC’s share of crude oil refining output to 200,000 barrels by 2027 and reach 500,000 by 2030.
The Petroleum Products and Retail Outlet Owners Association of Nigeria (PETROAN) yesterday called on the newly appointed board to produce 1.5 million barrels per day of crude oil for domestic consumption.
PETROAN stated that the additional volume should be outside the quota from the Organisation of Petroleum Exporting Countries (OPEC).
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said the new board should as a matter of urgency ensure that all the country’s refineries are functional at full capacity as well as fight corruption in the industry.
The Centre for the Promotion of Private Enterprise (CPPE) called for drastic improvement in the quality of the governance and management of the country’s oil and gas sector, noting that the country has not been able to leverage the huge oil and gas resources to advance economic development frontiers as many other oil-producing countries have done.
The Nigeria Extractive Industries Transparency Initiative (NEITI) urged the new leadership to prioritise full production data disclosure as well as timely publication of financial statements, operational costs and revenue remittances.
Chairman, Tantita Security Services Nigeria Limited (TSSNL), High Chief Government Ekpemupolo, popularly known as Tompolo, described the new GCEO Ojuolari as a “fit” for the job, noting that with the “seasoned” hands on board, Nigeria’s crude oil production would rise to two million barrels per day in no time.
The NNPCL welcomed the new board while extending deep appreciation to Kyari and the former board members for their selfless and dedicated service to the company and to the nation.
In a statement, NNPCL noted that Kyari’s leadership and tireless efforts have left an indelible mark on NNPCL, expressing appreciation to Kyari “for his outstanding contributions”.
“We wish him and all departing board members continued success and fulfilment in their future endeavours,” NNPCL stated.
President Tinubu had earlier commended the dedication of the outgoing GCEO and board members, particularly noting their efforts in rehabilitating the old Port Harcourt and Warri refineries, which enabled them to resume petroleum product production after prolonged shutdowns.
Kida, the board chairman, hails from Borno State while the GCEO, Ojulari is from Kwara State.
Both are alumni of Ahmadu Bello University (ABU), Zaria.
Kida received a degree in Civil Engineering in 1984 while Ojulari graduated with a degree in Mechanical Engineering. Both also have a career history of starting with Elf.
Kida, who also obtained a Postgraduate Diploma in Petroleum Engineering from the Institut Francaise du Petrol (IFP) in Paris and a PhD in Credit Management from the International University of Panama, 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. Last year, he became an Independent Non-Executive Director at Pan Ocean-Newcross Group.
Apart from his oil industry career, Kida is a former basketballer and the President of the Nigerian Basketball Federation (NBBF) board.
Ojulari, until his appointment, was Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company.
His Renaissance 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.
He started his career with Elf Aquitaine as the first Nigerian process engineer and later joined Shell 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 (NSE).
Expectations
Experts and stakeholders said they expected the new board not only to reposition NNPCL and actualise the full extent of the Petroleum Industry Act (PIA), the national oil company should play a prominent role in global oil dynamics.
Tompolo, in a congratulatory statement yesterday, thanked President Tinubu for the appointment of the new management and board of the NNPCL.
Tompolo, the Ibe-Ebidouwei of the Ijaw nation, while assuring the team of continued support, said the appointment was a pivotal moment in the journey of the NNPCL and the Nigerian oil and gas industry.
Said he: “We express our profound gratitude to His Excellency, President Bola Ahmed Tinubu, GCFR, for his visionary leadership and commitment to excellence, as demonstrated by the careful selection of seasoned professionals to steer the affairs of the NNPCL at this critical time.
“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 challenges and opportunities before this new management and board are immense, but we are confident in their ability to drive the ongoing restructuring of the NNPCL to greater heights.
“Under their stewardship, we believe that the President’s mandate to ramp up local refining capacity and increase Nigeria’s crude oil production to 2mbpd in record time will be realised and surpassed.”
He assured that his company, TSSNL, would remain steadfast in its commitment to partnering with the NNPCL to secure and enhance Nigeria’s oil production capabilities.
According to him, TSSNL’s expertise in oil asset protection and deep-rooted presence in the Niger Delta position it as a reliable ally in ensuring that the nation’s resources are safeguarded and utilised efficiently for the collective benefit of all stakeholders.
Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, expressed his support for the reconstitution of the NNPCL board.
Speaking in an interview on TV, he emphasised the importance of the leadership change, noting that it sends a significant signal regarding the future of Nigeria’s oil and gas sector.
“The reconstitution of the NNPC board is not just about Nigeria’s oil sector. As you know, oil remains a major pillar of the Nigerian economy.
“This move was long anticipated, and while some may have wished for it earlier, it’s better late than never,” Dr. Teriba said.
He also praised the calibre of individuals selected for the board, stating: “I’m particularly pleased with the calibre of people the President has assembled. If there’s a phrase like ‘the best of the best,’ I think he has managed to put together an inspiring team.”
Addressing concerns about the suddenness of the leadership change, Dr. Teriba expressed confidence in the President’s decision, particularly regarding the inclusion of non-executive directors from across Nigeria’s six geopolitical zones.
“These are reputable players in Nigeria’s oil and gas sector with decades of experience. If this team cannot get it right, then one wonders which team would,” he remarked.
On the issue of the Naira-to-crude deal and the increase in fuel prices following the expiration of the first phase, Dr. Teriba acknowledged the challenges but urged patience with the new leadership.
“The previous board’s tenure ended on March 31st, and the new board was appointed on April 2nd. They should be given time to address these issues rather than being rushed into working under the shadow of the previous board,” he advised.
Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the country has not been able to leverage the huge oil and gas resources to advance its economic development frontiers as many other oil-producing countries have done.
“Our peers as oil-producing countries have done much better – UAE, Norway, Saudi Arabia etc. We have largely succeeded in building a huge rent economy around our oil and gas sector,” Yusuf said, noting that the national oil company is a very strategic institution.
Said he: “If we must change the narrative, we must get it right with the governance and management of the NNPC”.
He said the changes on the board of NNPCL signalled the commitment of the present administration to chart a new course.
Yusuf said: “The new management team is populated by professionals with proven records of performance.
“They are therefore expected to change the face of the sector.
“We would like to see an NNPC that is comparable to its peers like Saudi Aramco, China National Petroleum Corporation, PETRONAS etc.
“We expect to see a dramatic improvement in corporate governance, better optimisation of oil and gas assets, and PPP investment framework that would drive efficiency, productivity and profitability.
“We would also like to see an end to refineries that have become a huge burden rather than assets on the economy.
“Above all is the imperative of fostering the highest standards of corporate governance.
“The listing of the NNPC Limited on both national and international stock exchanges would reinforce the desired corporate governance standards.
“However, all of these would be difficult to achieve if the political environment does not complement the realisation of this vision.
It is therefore very critical that the independence of the new NNPC is guaranteed with zero tolerance for interference from the Political leadership, the national assembly and the bureaucracy. These are critical success factors.”
Chief Executive Officer, Cabtree, Mr Olabode Sowunmi, an oil and gas expert, described the board change as a calculated effort to put some life and energy into the oil and gas industry.
Said he: “It is a calculated effort to put some life and energy into the industry. It is expected that this will mean new thinking, new focus and more results”.
Yushau Aliyu, an economic expert said the changes were timely, especially when the initial public offering (IPO) was underway.
“However, the IPO must be professionally determined by relating to the development in the oil market as well as the willingness of the general public.
“Investment potential with the economic growth targets of Nigeria 2030 should also be considered,” Aliyu said.
He said that the President was empowered by the Petroleum Industry Act (PIA 2021) to dissolve both the NNPC Ltd board and the CEO.
Another expert, Dr Sand Mba-Kalu, said that Nigeria’s oil and gas sector needed stability and predictability, along with strict adherence to legal standards, to attract sustainable investment and encourage transformation.
According to him, the board change represented a bold initiative within the larger framework of aiming to meet national production and refining targets in the energy sector by 2027 and 2030.
NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, said transparency in the management of oil and gas revenues remains critical to national development and ongoing poverty reduction efforts.
According to him, the EITI process provides a tested framework for ensuring that revenues from natural resources are prudently managed, fully accounted for, and efficiently deployed to address Nigeria’s development needs.
Said he: “We look forward to working closely with Mr. Ojulari and his team in deepening the NEITI-EITI process in Nigeria and ensuring that NNPCL continues to align with international best practices in corporate governance and financial transparency.”
He noted that as a member of the NEITI National Stakeholders’ Working Group (NSWG) and a key institution in Nigeria’s extractive industry, NNPCL has a responsibility to ensure that the reforms initiated under the PIA are strengthened.
“As a Supporting Company of the global Extractive Industries Transparency Initiative (EITI), NNPCL must demonstrate unwavering commitment to openness, systematic disclosure of critical industry data, responsible resource management, and corporate governance best practices,” Orji said.
Other experts commended the changes and called for improvements in all facets of operations.
President, Petroleum Products and Retail Outlet Owners Association of Nigeria (PETROAN), Dr. Billy Harry, charged NNPCL to provide an adequate information roadmap to the stakeholders.
He sought the professional appraisal of the industry and the application of economic growth values to make an impact on the entire value chain.
Describing the new GCEO Ojulari as a “ tested professional”, he urged the board to aim at producing 1.5mb/d of crude oil for domestic consumption outside of the OPEC quota.
“We know him as a goal-getter with simplicity,” Harry said.
President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, said the NNPCL should focus on critical areas in the industry begging for urgent attention.
As part of its agenda setting for the new board, IPMAN canvassed for the continuation of the naira-for-crude arrangement, citing its immense benefit to the country and particularly, to the consumers.
Maigandi also made a case for his association, admonishing Ojulari to carry it along in the direct purchase of petrol from the firm, noting that this will rub off positively on the consuming public.
“IPMAN should be considered for the direct purchase of petrol from the NNPCL. This is because we have the largest network of retail distribution channels in the country.
“IPMAN controls over 80 per cent of the petroleum retail outlet. So if we have direct purchase from the NNPC it will positively impact the market and economy,” Maigandi said.
