Nigeria Oil Sector Overhaul: Tinubu Retires Kyari, Installs New NNPC Leadership

President Bola Tinubu has initiated a pivotal transformation in Nigeria’s energy sector by accepting the retirement of Mele Kyari from his role as Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL). This transition marks the conclusion of Kyari’s tenure, which began in 2019, and has been characterized by significant challenges and achievements within the industry.

Tinubu’s Strategic Restructuring

In conjunction with Kyari’s retirement, President Tinubu dissolved the entire NNPCL governing board. This decisive action, made under the powers of Section 59(2) of the 2021 Petroleum Industry Act, reflects a strategic shift aimed at enhancing the management of Nigeria’s oil resources.

New Leadership Appointments

To spearhead a revival in Nigeria’s oil production, President Tinubu appointed engineer Bashir Bayo Ojulari as the new CEO. Ahmadu Musa Kida, formerly a deputy managing director at Total Nigeria, assumes the role of board chairman. These appointments aim to tackle the current production shortfall, with output currently lagging at 1.3 million barrels per day.

Ojulari’s Expertise

Ojulari brings a wealth of experience to the table. He led Renaissance Africa Energy’s acquisition of Shell’s Nigerian onshore assets. His technical skills are crucial for addressing production challenges and unlocking offshore potential.

Energy analyst Ifeoma Okeke observed, “This leadership change is about steering the NNPCL towards meeting ambitious production targets. Ojulari’s appointment signals a shift towards operational excellence and technical innovation.”

Board Composition

The reconstituted 11-member board includes representatives from across Nigeria’s geopolitical zones, ensuring diverse regional input in the company’s strategic direction. Permanent secretaries from the Finance and Petroleum ministries also serve on the board.

Kyari’s Legacy and Market Reaction

Despite challenges, Kyari achieved partial successes, such as reviving key refineries and reducing pipeline vandalism. His retirement comes amid ongoing investigations into alleged crude swap underpayments.

The market reacted positively to the leadership changes. Nigeria’s Eurobonds and the naira remained stable. Energy stocks on the Nigerian Exchange saw gains, indicating investor confidence in the new leadership’s potential to drive sector reforms.

Future Challenges

Tensions over crude supply agreements for the new Lagos mega-refinery were not explicitly addressed in the presidential statement, but likely influenced the timing of Kyari’s retirement. The administration now focuses on curbing oil theft and increasing production efficiency.

Historical Context: NNPC Leadership Through the Years

• R. A. Marinho (1977-1980) – Founding GMD
• Mohammed Barkindo (2009-2010) – Later became OPEC Secretary
• Ibe Kachikwu (2015-2016) – Initiated refinery rehabilitation program
• Mele Kyari (2019-2025) – Longest serving GMD since 1999

Immediate Priorities for Ojulari

With Kyari’s retirement now in effect, incoming CEO Ojulari faces immediate challenges. These include finalizing the long-delayed NNPC stock market listing and addressing the impacts of fuel subsidy removal. His first public statement is expected following emergency board meetings scheduled later this week.

Energy experts caution that while new leadership is promising, systemic reforms are needed to ensure sustainable growth in Nigeria’s oil sector. The international community will closely watch Ojulari’s first 100 days as CEO to gauge the efficacy of these strategic changes.