NNPC Leadership: Why Mele Kyari Was Sacked

In a major shake-up aimed at repositioning Nigeria’s oil industry, President Bola Ahmed Tinubu has removed Mele Kyari as Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL) and dissolved its board.

The decision, effective April 2, 2025, marks a decisive effort to improve efficiency, restore investor confidence, and realign the corporation with Nigeria’s ambitious economic and energy goals.

Why Was Mele Kyari Sacked?

Although the presidency has not released an official statement pinpointing the exact reasons for Kyari’s removal, multiple sources and industry analysts cite key factors that likely contributed to his ousting:

Operational Inefficiencies: Under Kyari’s leadership, Nigeria’s crude oil production plummeted below one million barrels per day at its lowest point—far below the OPEC quota. Persistent pipeline vandalism and crude theft exacerbated this crisis, frustrating efforts to stabilize output.

• Transparency Concerns: The NNPC, despite being commercialized under Kyari, continued to operate in opacity. Allegations of financial mismanagement, discrepancies in oil revenue reporting, and questionable subsidy claims cast doubt on the corporation’s credibility. Investors and policymakers increasingly pushed for reforms.
• Investor Confidence: Nigeria struggled to attract and retain oil investments due to governance concerns. While NNPC announced billions in new oil sector deals, many remained speculative or stalled. The Tinubu administration’s ambition of building a $1 trillion economy necessitated a leadership change to remove barriers to growth.
  
• Refinery Challenges: Despite Kyari’s assurances, Nigeria’s refineries remained largely non-functional, increasing reliance on imported petroleum products. The slow pace of rehabilitations at the Port Harcourt and Warri refineries signaled inefficiency.

In a scathing remark during a televised discussion, legal expert Barrister Felix captured the frustration surrounding Kyari’s tenure:

” “If you look at NNPC, it’s a reflection of Mele Kyari’s administration. Mele Kyari has been working against the progress of Nigeria as long as we can remember. It’s in the interest of Bola Ahmed Tinubu, who wants to make a $1 trillion economy, to remove whoever is standing as a clog in the wheel of progress.”

Energy expert Emmanuel Afimia added:

“The failure of NNPC has a direct bearing on the economic woes Nigeria has.”

Who is Bayo Ojulari, the New NNPC GCEO?

To replace Kyari, President Tinubu appointed Engr. Bashir Bayo Ojulari, a seasoned oil industry executive with over three decades of experience.

Ojulari, an alumnus of Ahmadu Bello University, Zaria, holds a degree in Mechanical Engineering. He started his career at Elf Aquitaine as a process engineer before joining Shell Petroleum Development Company in 1991. Over the years, he worked across Nigeria, Europe, and the Middle East in roles spanning petroleum engineering, asset management, and strategic planning. His tenure as Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo) from 2015 to 2021 saw significant deepwater project developments.

Most recently, Ojulari served as Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company, leading a $2.4 billion acquisition of Shell Petroleum Development Company of Nigeria (SPDC). His appointment signals a shift towards private-sector expertise and accountability in NNPC’s leadership.

A New Era for NNPC?

The leadership transition at NNPC is not just about personnel changes—it represents a pivotal moment for Nigeria’s oil sector. The Tinubu administration has set bold targets for the industry:

• Increase oil production to two million barrels per day by 2027 and three million by 2030.
• Boost gas production to eight billion cubic feet daily by 2027 and ten billion by 2030.
• Expand NNPC’s crude oil refining capacity to 200,000 barrels per day by 2027 and 500,000 by 2030.

To achieve these, the new NNPC board has been tasked with conducting a strategic portfolio review of joint venture assets, optimizing value, and prioritizing local content development.

Ojulari’s track record suggests he could be the right man for the job. His expertise in upstream and downstream operations, deal structuring, and strategic growth initiatives aligns with the administration’s push for a more commercially viable and transparent NNPC.

What’s Next?

The sacking of Mele Kyari and the appointment of Bayo Ojulari reflect President Tinubu’s commitment to overhauling the oil sector and strengthening Nigeria’s energy independence. The question now is whether Ojulari and the new NNPC leadership can rise to the challenge and deliver tangible results.

With pressing issues like crude oil theft, underperformance of refineries, and the need for increased foreign investment, stakeholders will be watching closely.

Is this the turning point Nigeria’s oil industry has been waiting for? Time will tell.