Mass Purge Looms at NNPCL as Ojulari Takes Charge, Major Reorganization Underway

There are indications that more changes are imminent at the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries as Engineer Bayo Ojulari formally assumed office as the new Group Chief Executive Officer (GCEO) yesterday. The announcement of his appointment, along with the new Board of Directors, was made by President Bola Ahmed Tinubu.

Reports suggest that a comprehensive reorganisation will begin at the corporate headquarters and extend across NNPCL’s subsidiaries, including Upstream, Gas and Power, New Energy, Downstream, and Non-Energy businesses. This restructuring aims to align leadership with the company’s objectives to meet national goals and enhance the oil and gas sector. Among the subsidiaries expected to be impacted are NNPC E&P Limited, NNPC Upstream Investment Management Services, NNPC Energy Services Limited, NNPC Engineering and Technical Company, and many others.

Experts in the oil and gas sector have outlined an ambitious agenda for the new leadership. Professor Wumi Iledare, Executive Director of the Emmanuel Egbogah Foundation, emphasized the need to revisit the Naira-for-Crude agreement with local refineries and explore the public listing of NNPCL shares. He also advocated for the divestment of certain Joint Venture (JV) shares, the restructuring of NNPCL under the intent of the Petroleum Industry Act (PIA), and a stronger focus on commercial mandates. Furthermore, Iledare called for the promotion of economies of scale and enhanced recruitment and training within the industry.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted that the governance and management of the oil and gas sector has long been a barrier to Nigeria’s economic progress. He pointed out that countries like the UAE, Norway, and Saudi Arabia have better leveraged their oil and gas resources for economic growth. Yusuf expressed optimism about the new NNPCL leadership, noting that their professional experience in the private sector could be transformative. He advocated for improved corporate governance, better asset optimization, and a shift towards a Public-Private Partnership investment framework to drive efficiency and profitability. He also stressed the importance of ending the financial drain caused by underperforming refineries and ensuring that NNPCL’s governance standards align with global leaders like Saudi Aramco and PETRONAS.

The management and staff of NNPCL also welcomed the new leadership. In a statement, the Chief Corporate Communications Officer, Olufemi Soneye, expressed gratitude to the outgoing GCEO, Mele Kyari, and the former Board members for their dedicated service to the company and the nation. Soneye praised Kyari’s leadership, which left a lasting impact on the organization, and wished him and the departing Board members continued success in their future endeavors.