President Bola Tinubu has removed Mele Kyari, Pius Akinyelure, and all board members of the Nigerian National Petroleum Company Limited (NNPCL) in a major shakeup. This move follows calls for reforms in the oil and gas sector after the Petroleum Industry Act (PIA) 2021 and NNPCL’s commercialisation in 2022.
Presidential spokesman Bayo Onanuga said the restructuring aims to improve efficiency, attract investors, boost local content, and enhance gas production.
New Leadership at NNPCL
Tinubu appointed a new 11-member board with Bashir Ojulari as Group CEO and Ahmadu Kida as Non-Executive Chairman. Other members include Adedapo Segun, Bello Rabiu, Yusuf Usman, Babs Omotowa, Austin Avuru, David Ige, Henry Obih, Lydia Jafiya, and Aminu Ahmed.
With the new leadership in place, there are urgent tasks ahead.
Resume Naira For Crude Sale to Local Refineries
Nigerians expect the new NNPCL team to restart crude sales to Dangote Refinery and other local refiners in line with Tinubu’s mandate. Experts believe this will ease pressure on the dollar and stabilise fuel prices.
The suspension of the naira-for-crude policy led to a petrol price increase from ₦860 per litre in March to about ₦1,000 in April. The Dangote Refinery halted petrol sales in naira, citing a mismatch between naira earnings and dollar-denominated crude purchases.
Increase Oil and Gas Production
The new board must boost oil output beyond the current 1.5 million barrels per day to meet Nigeria’s OPEC quota. The government aims to raise production to two million barrels daily by 2027 and three million by 2030.
Gas production is also a priority, with targets set at eight billion cubic feet per day by 2027 and 10 billion by 2030.
Improve Efficiency at Local Refineries
The Port Harcourt and Warri refineries resumed operations last December after long periods of inactivity. The new board must ensure these refineries operate efficiently to reduce Nigeria’s reliance on fuel imports. Steady output from state-run and private refineries like Dangote’s will help stabilise supply.
The oil and gas sector is a key driver of Nigeria’s economy, and the success of these reforms will shape the country’s energy future.
