Why Tinubu Fired Kyari and NNPCL Board: The Untold Story Behind the Shake-Up

President Bola Tinubu’s decision to remove Mele Kyari as Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), along with the entire board, was not just a routine leadership change. It was a strategic move aimed at addressing stagnation in Nigeria’s oil sector. Insiders at the Presidency and within the industry revealed that the shake-up was triggered by frustration over missed production targets, inefficiencies, and the inability of the NNPCL to align with Tinubu’s economic agenda. Despite various reform efforts, Nigeria continued to struggle with meeting its OPEC crude oil production quota, which has remained largely unchanged for decades. While other oil-producing nations increased output, Nigeria remained stuck due to pipeline vandalism, underinvestment, and ageing infrastructure.

A high-ranking government official, who spoke anonymously, explained that Tinubu had grown increasingly dissatisfied with the former leadership, which he believed was “going in circles” rather than driving progress. According to the official, the President felt the need for fresh energy in the system and decided to bring in an entirely new team of core industry professionals, rather than political appointees. The new leadership is expected to focus on efficiency and results, with clear targets set for oil and gas production. Tinubu has tasked them with stabilizing crude oil output at two million barrels per day by 2027, increasing it to three million by 2030, and expanding gas production to 10 billion cubic meters within the same period. In addition to boosting production, the administration is also aiming to attract $30 billion in investments by 2027 and $60 billion by 2030.

One of the key factors that contributed to Kyari’s removal was the failure of the naira-for-crude deal between NNPCL and the Dangote Refinery. The agreement, which was initially backed by Tinubu, was designed to allow local refineries to purchase crude in naira instead of dollars, ensuring a stable supply of petroleum products for the domestic market. However, tensions between NNPCL and Dangote led to the collapse of negotiations, resulting in a surge in fuel prices from N860 per litre to over N930. This price hike further strained the economy, increasing pressure on the administration to intervene. The inability to resolve the crisis was seen as a major setback, and Tinubu’s decision to overhaul the NNPCL leadership was partly influenced by the need for a new team that could bring solutions.

The restructuring has been met with mixed reactions within the oil and gas sector. While some stakeholders acknowledge Kyari’s contributions, particularly in rehabilitating Nigeria’s refineries, many believe that change was necessary. The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the new leadership, urging them to prioritize the full operation of the Port Harcourt, Warri, and Kaduna refineries to ensure sufficient fuel supply. The Nigerian Association of Petroleum Explorationists (NAPE) described the move as a step towards greater efficiency, transparency, and profitability. Similarly, the Crude Oil Refinery-Owners Association of Nigeria (CORAN) called for an urgent focus on local refining, emphasizing the importance of energy self-sufficiency.

The new NNPCL board is composed of industry experts with extensive experience. Bashir Ojulari, the newly appointed GCEO, was previously the Executive Vice President of Renaissance Africa Energy Company and played a key role in the $2.4 billion acquisition of Shell’s onshore assets in Nigeria. Musa Ahmadu-Kida, the new non-executive chairman, has decades of experience in the oil sector, having served as Deputy Managing Director at Total Exploration and Production. Adedapo Segun takes over as Chief Financial Officer, while six non-executive directors have been appointed to represent Nigeria’s geopolitical zones. Government representatives include Lydia Jafiya from the Ministry of Finance and Aminu Said Ahmed from the Ministry of Petroleum Resources.

The challenge now lies in whether this new leadership can succeed where its predecessors struggled. Oil theft, decaying infrastructure, and funding constraints remain significant obstacles. Professor Emeritus Wumi Iledare, an industry expert, expressed cautious optimism, noting that this was the first time the NNPCL had a board that was largely apolitical and composed of top industry professionals. However, he stressed the need for immediate action on key issues, including resolving the naira-for-crude dispute, divesting unproductive assets, and increasing local refining capacity.