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. ..CONTINUE READING
“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 told Daily Trust 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.
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.
