By Cross Udo, with agency report
The sudden exit of Mele Kyari as the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has sent shockwaves through the industry, marking an unceremonious end to his tenure at the helm of the state-run oil giant.
The President reconstituted the NNPC Ltd. board yesterday, removing the Chairman, Chief Pius Akinyelure, and the Group Chief Executive Officer (GCEO), Malam Mele Kyari.
Tinubu removed all the board members appointed with Akinyelure and Kyari in November 2023.
The new 11-man board has Mr Bayo Ojulari as the Group Chief Executive Officer (GCEO) and Ahmadu Kida as Non-Executive Chairman.
*Tenure granted, January, but ended abruptly yesterday
Meanwhile, Kyari’s removal, which came just months after a tenure extension, underscores the political and operational dynamics in the oil sector.
Kyari, who was due to retire in 2023 after reaching the mandatory age of 60, had successfully lobbied for an extension of his tenure.
This request was granted in January 2024, allowing him to remain in office.
However, in a dramatic twist, his extended leadership was abruptly halted yesterday, raising questions about the internal and external pressures that led to his removal.
*Eulogised for PIA, slow return of dead govt refineries
One of Kyari’s most notable achievements was his role in advocating for and implementing the Petroleum Industry Act (PIA).
This landmark legislation, which had been in legislative limbo for over a decade, sought to reform the NNPCL and make its operations more transparent and commercially driven.
Under his leadership, the transition of NNPCL from a government agency to a fully commercialised entity was accelerated, offering a semblance of accountability in an organisation long perceived as opaque.
*Accused of unbridled northernisation policy
Despite these achievements, Kyari’s tenure was not without controversy.
His leadership was tainted by nepotism allegations, with critics accusing him of aggressively pursuing a policy of northernisation within the company.
Detractors argued that under his watch, key positions within NNPCL were disproportionately filled by individuals from a particular region, thereby fostering discontent and concerns about a lack of inclusivity in the corporation’s recruitment and promotion processes.
*Mixed reactions trail reconstitution of NNPCL management, board
Mixed reactions yesterday trailed changes in the management of the NNPC Ltd and its board by President Tinubu.
A former president of the Trade Union Congress (TUC), Peter Esele, expressed optimism that the new board would take positive steps to improve NNPC Ltd’s fortunes.
In an interview with ThisNigeria, Esele said, “I believe this new board will do well because they were drawn from the private sector. They will do a lot of repositioning in the NNPC Ltd because of their proven track records.”
Some other experts also reacted to the development in an interview with the News Agency of Nigeria (NAN) yesterday in Abuja.
Mr Olabode Sowunmi, an Oil and Gas Expert, described the development as a calculated effort to put some life and energy into the oil and gas industry.
Sowunmi, CEO of Crabtree, described it as a welcome development.
He said the NNPC Ltd. was a limited liability company with the Federal Government as its major shareholder.
“It is a calculated effort to put some life and energy into the industry. It is expected that this will mean new thinking, focus and more results,” he said.
According to Sowunmi, even the proposed Initial Public Offer (IPO), which would have listed NNPC in the stock market, would not have prevented Kyari’s removal, as he is a government appointee.
“The government can remove any government appointee at any time,” he said.
Yushau Aliyu, an economic expert, said the changes were timely, especially when the 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,” he said.
He said the Petroleum Industry Act (PIA 2021) empowered the President to dissolve the NNPC Ltd. board and the CEO.
Another expert, Dr Sand Mba-Kalu, said Nigeria’s oil and gas sector needed stability, predictability, and strict adherence to legal standards to attract sustainable investment and encourage transformation.
According to him, the move represents a bold initiative within the larger framework to meet our national production and refining targets in the energy sector by 2027 and 2030.
Mr Lawrence Nze, an economist, said that most of the policies introduced under Kyari have never solved the challenges in the oil sector.
Nze said that the Naira for crude policy was not working since it had not resulted in any severe price reduction.
According to him, the Dangote Refinery gradually achieved that with a slight reduction in ex-depot price, which usually affects pump price, but suddenly, authorities in the oil sector cancelled it.
“To me, it looks like a sabotage against the people. Why can we not stop importation? It means there is a deal from which someone or a group benefits.
“It is not rocket science to get the energy sector working. Nigerians want cheaper petroleum products; is that too much to ask for?
“Only President Tinubu knows why he sacked Kyari, and whatever the reason was, Nigerians should have access to cheaper petroleum products, especially fuel.
“I will advise the president to ensure that the Naira for crude policy works in the country to enable local refineries to operate on a cheaper scale,” he said.
