Wednesday’s overhaul of Nigeria’s state-run oil firm NNPCL didn’t come as a shock to eager observers who’ve vociferously pressed for reforms within the upstream and downstream sectors after the epochal birthing of the Petroleum Trade Act (PIA) 2021, and the following commercialisation of the state-run oil firm in July 2022.
Having given the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) about two years to ramp up efficiency, President Bola Tinubu sacked all of the Board members of the corporate on April 2, 2025.
Presidential spokesman Bayo Onanuga was unequivocal with the explanations for the restructuring, which he mentioned was “essential for enhancing operational effectivity, restoring investor confidence, boosting native content material, driving financial development, and advancing gasoline commercialisation and diversification”.
Although some commentators have described the restructuring as lengthy overdue, it’s higher late than by no means.
Considerably, the president eliminated Mele Kyari as the corporate’s group chief govt officer. Kyari, one of many “star boys” bequeathed to Tinubu by his predecessor, Muhammadu Buhari, led the oil firm from July 7, 2019, until his sacking on April 2, 2025.
READ ALSO: Filling Stations Hike Petrol Value Amid Dangote-NNPCL Crude Dispute
Kyari labored within the NNPCL for greater than three many years earlier than his elimination. When he clocked 60 in January 2025, there have been protesting voices demanding his elimination, however the president shunned the critics and retained him.
He was one of many few heads of parastatals not instantly changed by the brand new authorities. Others embrace NAFDAC boss Mojisola Adeyeye and NDLEA chair Buba Marwa.
Nevertheless, Tinubu wielded the large stick on Wednesday, eradicating Kyari, and NNPCL Board Chair, Pius Akinyelure, in addition to all different board members appointed with Akinyelure and Kyari in November 2023.
Of their stead, the president appointed a brand new 11-man board with Bashir Ojulari because the Group CEO and Ahmadu Kida as non-executive chairman. Different Board members are Adedapo Segun, Bello Rabiu, Yusuf Usman, Babs Omotowa, Austin Avuru, David Ige, Henry Obih, Lydia Jafiya, and Aminu Ahmed.
Now that there are new sheriffs on the town, listed below are some pressing duties earlier than the brand new NNPCL Board:
1. Fast Resumption Of Naira-For-Crude Sale To Dangote Refinery, Others.
Going by the heart beat of tens of millions of Nigerians on social media, they anticipate the brand new NNPCL management underneath Kida and Ojulari to right away resume the sale of crude oil to Dangote Refinery and different native refiners consistent with the presidential mandate of July 2024.
The resumption of Naira-denominated crude gross sales, consultants consider, would cut back the pressure on the US greenback and assure the value stability of petroleum merchandise.
It might additionally cut back the pump value per litre of petrol, which out of the blue jumped from ₦860 in March 2025 to round ₦1,000 in April 2025 after the NNPCL and Dangote Refinery each introduced the termination of their six-month contract.
The crude dispute stemmed from a value warfare between the 2 events because the Dangote Refinery stopped the sale of petrol in Naira until additional discover. “That is essential to keep away from a mismatch between our gross sales proceeds and our crude oil buy obligations, that are at present denominated in US {dollars},” the corporate mentioned in a press release.
The $20bn refinery based mostly in Lagos mentioned the gross sales of its merchandise in Naira have exceeded the worth of Naira-denominated crude it has acquired from the NNPCL.
Nigerians are anticipated to expertise some aid from excessive, dollar-denominated imported gas if talks on the resumption of naira-for-crude succeed.
2. Enhance Oil & Gasoline Manufacturing
The brand new NNPCL Board is anticipated to ramp up the nation’s oil manufacturing capability from a median of 1.5 million barrels per day, consistent with its OPEC quota.
Already, the Tinubu administration targets elevating oil manufacturing to 2 million barrels day by day by 2027 and three million barrels day by day by 2030.
The federal government additionally needs gasoline manufacturing to be elevated to eight billion cubic toes day by day by 2027 and 10 billion cubic toes by 2030.
3. Increase Effectivity At Port Harcourt & Warri Refinery
The brand new NNPCL staff is anticipated to spice up output on the Port Harcourt and Warri refineries, which got here again on stream final December after it had been shut down for years because of technical points.
Regular output from the 2 refineries, consultants consider, would complement efforts by different indigenous refineries like Dangote Refinery to ensure provide stability.
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