Nigerian President Bola Tinubu dismissed the entire leadership of the state-run oil company on Wednesday, appointing a former Shell executive to spearhead reforms.
The sweeping shake-up removed Mele Kyari, the National Petroleum Company (NNPC) Limited’s group chief executive, and Pius Akinyelure, the company’s chairman and Tinubu’s close ally. Bayo Ojulari, former managing director of Shell Nigeria Exploration and Production Company, was named as Kyari’s replacement.
Tinubu’s media adviser, Bayo Onanuga, emphasized that restructuring was crucial to improving efficiency, restoring investor confidence, and advancing gas commercialization and economic diversification.
The NNPC has long battled allegations of corruption, political interference, and mismanagement of Nigeria’s oil wealth. The new leadership must now enhance strategic partnerships, boost oil production, and tackle rampant crude theft.
Oil production in Nigeria dropped to below one million barrels per day in 2023. The government aims to increase output to two million barrels daily by 2027 and three million by 2030. The NNPC is expected to contribute at least 10 percent of the total by 2027.
A presidential source cited concerns over a “crisis of confidence” in the industry, which is central to Nigeria’s economic recovery. However, another insider downplayed the firings as punitive, acknowledging Kyari’s contributions, including refinery revitalization efforts.
The restructuring signals Tinubu’s commitment to reshaping the petroleum sector, a linchpin in Nigeria’s economic landscape.