President Bola Tinubu of Nigeria has announced a sweeping reconstitution of the board of the Nigerian National Petroleum Company (NNPC) Limited, the state-owned oil firm, in a move aimed at boosting efficiency and investor confidence.
The shake-up sees the departure of the current chairman, Pius Akinyelure and the Group Chief Executive Officer, Mele Kyari. All other board members appointed alongside them in November 2023 have also been removed.
Bayo Ojulari has been named the new Group CEO, while Ahmadu Kida takes over as the non-executive chairman of the 11-member board. Adedapo Segun, who was appointed chief financial officer last year, will remain on the board.
The new board also includes representatives from Nigeria’s six geopolitical zones in non-executive director roles: Bello Rabiu (North West), Yusuf Usman (North East), Babs Omotowa (North Central), Austin Avuru (South-South), David Ige (South West) and Henry Obih (South East). The Federal Ministry of Finance and the Ministry of Petroleum Resources will be represented by Mrs Lydia Shehu Jafiya and Aminu Said Ahmed, respectively.
President Tinubu invoked his powers under the Petroleum Industry Act, 2021, to implement the changes, stating that the restructuring is “crucial for enhancing operational efficiency, restoring investor confidence, boosting local content, driving economic growth, and advancing gas commercialisation and diversification.”
The new board has been tasked with an immediate action plan, including a strategic review of NNPC’s assets to ensure they align with value maximisation objectives.
This overhaul comes as Nigeria seeks to attract more investment into its oil sector. The Tinubu administration has set ambitious targets, aiming to increase oil sector investment from a reported $17 billion to $30 billion by 2027 and $60 billion by 2030. The government also hopes to raise oil production to two million barrels per day by 2027 and three million by 2030, alongside increasing gas production.
Ahmadu Kida, the new chairman, is a seasoned civil and petroleum engineer with experience at companies like Elf Petroleum Nigeria and Total. He is also a former president of the Nigerian Basketball Federation.
Bayo Ojulari, the incoming Group CEO, previously held a leadership position at Renaissance Africa Energy Company and has a strong background in mechanical engineering and the oil sector, including roles at Elf Aquitaine and Shell.
President Tinubu thanked the outgoing board members for their service, particularly highlighting their efforts in rehabilitating key refineries.
The appointments are effective as of today, April 2nd.
This move signals a significant shift in the leadership of Nigeria’s state oil company, which is central to the country’s economy. The new board will be under pressure to deliver on the ambitious targets set by the government and to improve the performance and transparency of NNPC.
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