Yemisi Izuora
Global and local oil and gas industry analysts and stakeholders have expressed confidence on the crop of professionals appointed to the board of the Nigerian National Petroleum Company Limited (NNPCL), highlighting also key areas of focus to improve industry efficiency.
They held that with their wealth of experience of the industry efforts should be made especially to improve oil production through matured fields as well rejuvenate idle assets to unlock Nigeria’s economic potential and drive sustainable growth.
According to them, optimising these assets will create value for all Nigerians and foster development across key economic sectors.
The Nigeria Extractive Industries Transparency Initiative (NEITI), in its reaction applauded the appointment of Mr. Bayo Ojulari, as the Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company Limited (NNPCL).
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, in his congratulatory message also challenged the new GCEO, to demonstrate unwavering commitment to openness, systematic disclosure of critical industry data, responsible resource management, and corporate governance best practices.
Orji, said that his appointment comes at a critical time when the ongoing reforms in NNPCL require renewed commitment, strategic leadership, and a firm dedication to transparency, accountability and corporate governance.
According to Orji, “NEITI recognizes that NNPCL, as Nigeria’s foremost national energy company, plays a crucial role in shaping the future of the country’s oil and gas sector. As a member of the NEITI National Stakeholders’ Working Group (NSWG) and a key institution in Nigeria’s extractive industry, NNPCL has a responsibility to ensure that the reforms initiated under the Petroleum Industry Act (PIA) are strengthened, broadened, and sustained in the public interest”.
He added that “As a Supporting Company of the global Extractive Industries Transparency Initiative (EITI), NNPCL must demonstrate unwavering commitment to openness, systematic disclosure of critical industry data, responsible resource management, and corporate governance best practices”.
The NEITI urged the new leadership to prioritize timely publication of NNPCL’s financial statements, full disclosure of production data, operational costs, and revenue remittances to help rebuild public trust and enhance Nigeria’s global reputation.
“Transparency in the management of oil and gas revenues remains critical to national development and ongoing poverty reduction efforts. The EITI process provides a tested framework for ensuring that revenues from natural resources are prudently managed, fully accounted for, and efficiently deployed to address Nigeria’s development needs. We look forward to working closely with Mr. Ojulari and his team in deepening the NEITI-EITI process in Nigeria and ensuring that NNPCL continues to align with international best practices in corporate governance and financial transparency”, Orji affirmed.
NEITI also congratulated the newly reconstituted NNPCL Board and charged them to provide forward-looking strategic direction to fast-track the ongoing transformation of NNPCL in line with the PIA.
The Board’s role in ensuring that NNPCL remains accountable to its shareholders—the Nigerian peopleis crucial to the long-term sustainability of the company and the industry at large.
Dr. Orji thanked the Mele Kyari Team for their dedication and hardwork. “On behalf of the NEITI National Stakeholders’ Working Group, we extend our appreciation to the outgoing GCEO, Mr. Mele Kyari, for his mutual respect, patience, and collaboration with NEITI over the past six years.
His tenure was marked by significant engagements with NEITI in advancing corporate transparency, public disclosures, and aligning NNPCL with the global EITI framework.
“We commend his service to the nation and wish him success in his future endeavours”.
“NEITI remains committed to its mandate of ensuring transparency and accountability in Nigeria’s extractive sector and will continue to support all efforts aimed at making NNPCL a globally competitive, accountable, and efficiently managed national oil company.” he added.
In their view, JP Morgan’s analysts noted that the recent change in NNPCL management was a big step forward in the overall oil sector reform agenda.
“We have previously written about the visible benefits of privatising Nigeria’s downstream refined oil sector (see here). However, we believe a private sector-led NNPC would complement other oil reform efforts (e.g enacting the Petroleum Industry Act and removal of oil subsidies).
“While it may not result in a sharp increase in oil production in the near term, it should result in improved transparency and better flow of oil dollars to the government.
For now, the current account surplus remains large, US$17.5 billion last year, yet negative errors also remain large and limit the extent of FX reserve accumulation.
“The next catalyst is new NNPC FX financing arrangements, which should boost FX liquidity in the near term. Media reports suggest NNPC is in the final stages of agreeing another medium-term FX financing arrangement, collateralised with future oil output.
“If these arrangements are finalised in the coming months, the NNPC could have up to US$9.5 billion in new financing, which could be used to clear arrears owed for petrol imports and potentially contribute to FX reserve rebuilding. However, while this financing arrangement had appeared imminent a few weeks ago, it is unclear what impact the change in management at the NNPC would have on its timing,” they added.
Also reacting, Engr. Chichi Emenike, 2nd Vice President, Nigerian Gas Association (NGA), said the NNPCL must commit to transparency and accountability consistent with global best practices.
Emenike, who is also Vice President, Upstream for Women in Energy and Ag. MD & Asset Manager for Neconde Energy Limited (OML 42), expects reconstruct of various arrangements between the company and private companies to provide enabling and clement environment that is attractive to investors.
She said, the NNPCL holds significant and strategic equity on producing assets through different arrangements like Joint Venture operations among others and efforts should be focused on how to encourage private sector operators that fund most field developments.
Emenike, particularly spoke on creating more opportunities in the midstream sector development.
She expressed worries that despite huge gas reserves the country holds, much has not been adequately done to optimize gas production and fully bringing it to economic development and growth.
As a National Oil Company (NOC) she is of the view that the NNPCL should leverage the experiences of NOCs like its counterparts in other climes to propel exponential profitability.
She advised that for the company to increase production and profit, it must collaborate with stakeholders, particularly oil-producing communities, to preserve oil facilities and also its joint venture partners.
On his part, the national president of the Petroleum Retailers Outlets Owners Association of Nigeria, Billy Gillis-Harry, said the NNPCL should begin to extend partnerships with global entities to improve in oil and gas operations.
Gillis-Harry, notes that NNPCL’s shift into a private company creates new potential for profitability and expansion, but the company must deal with the challenges with domestic refining, operational issues, and increased transparency.
According to him, by learning from the experiences of NOCs in other countries and committing to sustainability initiatives, the NNPCL can position itself for long-term success in Nigeria’s oil sector.
In his view, the channel of communications and engagement with stakeholders should be improved with regular meetings to provide critical feedback on operational issues and planning.
He also points to optimization which he believes brings benefits ranging from increased availability and productivity to lower costs and compliance risks.
Two industry experts with vast knowledge of petroleum sector operations urged for full resuscitation of public refineries to create opportunities for wider supply chains especially for white products to avoid monopoly in the system.
Also, the Nigerian Association of Petroleum Explorationists has lauded President Tinubu for the new Nigerian National Petroleum Company board appointment, noting that the appointment is a bold step towards repositioning the oil and gas industry for greater efficiency, transparency, and profitability.
In a statement signed by NAPE president, Johnbosco Uche, the Association said, the appointment of Bayo Ojulari as the new Group CEO, alongside Ahmadu Musa Kida as Non-Executive Chairman, is a testament to the President’s commitment to excellence and his desire to drive growth in the sector.
The statement read, “The Nigerian Association of Petroleum Explorationists wishes to express its profound appreciation to President Bola Ahmed Tinubu for the recent appointment of a new Board and Management Team for the Nigerian National Petroleum Company Limited.
Oriental News Nigeria reports that President Bola Ahmed Tinubu on Wednesday approved the reconstitution of the NNPCL Board removing all other board members appointed with Akinyelure and Kyari in November 2023.
A statement issued on Wednesday by Bayo Onanuga,
Special Adviser to the President (Information & Strategy) explained that the new 11-man board has Engineer Bashir Bayo Ojulari as the Group CEO and Ahmadu Musa Kida as non-executive chairman.
Adedapo Segun, who replaced Umaru Isa Ajiya as the chief financial officer last November, has been appointed to the new board by President Tinubu.
Six board members, non-executive directors, represent the country’s geopolitical zones.
They are Bello Rabiu, North West, Yusuf Usman, North East, and Babs Omotowa, a former managing director of the Nigerian Liquified Natural Gas( NLNG), who represents North Central.
President Tinubu appointed Austin Avuru as a non-executive director from the South-South, David Ige as a Non-executive director from the South West, and Henry Obih as a non-executive director from the South East.
Mrs Lydia Shehu Jafiya, permanent secretary of the Federal Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.
All the appointments are effective April 2, 2025.
President Tinubu, invoking the powers granted under Section 59, subsection 2 of the Petroleum Industry Act, 2021, emphasised that the board’s restructuring is crucial for enhancing operational efficiency, restoring investor confidence, boosting local content, driving economic growth, and advancing gas commercialisation and diversification.
President Tinubu also handed out an immediate action plan to the new board: to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives.
The statement recalled that since 2023, the Tinubu administration has implemented oil sector reforms to attract investment.
“Last year, NNPC reported $17 billion in new investments within the sector.
“The administration now envisions increasing the investment to $30 billion by 2027 and $60 billion by 2030.
“The Tinubu administration targets raising oil production to two million barrels daily by 2027 and three million daily by 2030. Concurrently, the government wants gas production jacked to 8 billion cubic feet daily by 2027 and 10 billion cubic feet by 2030.
“Furthermore, President Tinubu expects the new board to elevate NNPC’s share of crude oil refining output to 200,000 barrels by 2027 and reach 500,000 by 2030.
“The new board chairman, Ahmadu Musa Kida, is from Borno State.
“He is an alumnus of Ahmadu Bello University, Zaria, where he received a degree in civil engineering in 1984.
“He also obtained a postgraduate diploma in petroleum engineering from the Institut Francaise du Petrol (IFP) in Paris
“He started his career in the oil industry at Elf Petroleum Nigeria and later joined Total Exploration and Production as a trainee engineer in 1985.
“Musa became Total Nigeria’s Deputy Managing Director of Deep Water Services in 2015.
“Last year, he became an Independent Non-Executive Director at Pan Ocean-Newcross Group.
“Apart from his oil industry career, Ahmadu Musa Kida is a former basketballer and the president of the Nigerian Basketball Federation(NBBF) board.
“Ojulari, the new NNPC Limited Group CEO, hails from Kwara State.
“Until his new appointment, he was Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company. “His Renaissance recently led a consortium of indigenous energy firms in the landmark acquisition of the entire equity holding in the Shell Petroleum Development Company of Nigeria (SPDC), worth $2.4 billion.
“Like Kida, Ojulari is also an alumnus of Ahmadu Bello University, Zaria. “He graduated with a degree in Mechanical Engineering. .
“He worked for Elf Aquitaine as the first Nigerian process engineer to begin a stellar career in the oil sector.
“From Elf, he joined Shell Petroleum Development Company of Nigeria Ltd in 1991 as an associate production technologist.
“Apart from working in Nigeria, he worked in Europe and the Middle East in different capacities as a petroleum process and production engineer, strategic planner, field developer, and asset manager.
“In 2015, he became the managing director of Shell Nigeria Exploration and Production Company (SNEPCO).
“During his career, he was chairman and member of the board of trustees of the Society of Petroleum Engineers (SPE Nigerian Council) and a fellow of the Nigerian Society of Engineers.”President Tinubu thanked the old board members for their dedicated service to NNPC Limited, particularly their efforts in rehabilitating the old Port Harcourt and Warri refineries, which enabled them to resume petroleum product production after prolonged shutdowns. “He wished them well in their future endeavours”