Critical Priorities For The Newly Appointed NNPC Board

Critical Priorities For The Newly Appointed NNPC Board

The recent overhaul of the Nigerian National Petroleum Company Limited (NNPC) by President Bola Tinubu signals a renewed push toward repositioning the company for greater performance and accountability. With the appointment of a new Group Chief Executive Officer, Bayo Ojulari, and the dissolution of the previous board headed by Mele Kyari, expectations are high for the company’s future direction….READ MORE….

Musa Kida, a seasoned engineer and former Deputy Managing Director of Deep Water Services at Total Nigeria, assumes the role of non-executive chairman, replacing Pius Akinyelure. The board also features industry veterans including David Ige, Austin Avuru (a former Seplat MD), and Babs Omotowa (former MD of Nigeria LNG Limited).

Ojulari brings a wealth of experience, having served as the Managing Director of Shell Nigeria Petroleum Exploration Company and Vice President at Renaissance Africa Energy Company, which recently acquired Shell’s onshore assets in Nigeria.

The new leadership team is well-versed in the intricacies of the oil and gas sector—its challenges, opportunities, and operational dynamics—which positions them strategically to revamp NNPC’s operations.

Despite being established in 1977, the NNPC has consistently underperformed and has fallen short of the standards set by international counterparts like Malaysia’s Petronas, Brazil’s Petrobras, and Saudi Arabia’s Aramco. Unlike these companies, which have evolved into global powerhouses, NNPC has grappled with operational inefficiencies, non-functional refineries, and persistent reliance on fuel imports—resulting in significant economic losses.

The company’s four refineries, with a combined capacity of 445,000 barrels per day, have operated far below potential for decades. By contrast, Petrobras runs 11 refineries with a total capacity of 1.85 million bpd and has become a publicly traded, profit-oriented entity.

NNPC’s legacy has been tainted by opaque financial operations, allegations of corruption, and excessive government interference, which have undermined its credibility and performance. Rather than generating substantial profits like its peers, NNPC has accumulated massive debt—repaid in part through Nigeria’s crude oil allocations.

For Ojulari and his team, a key mandate is to transform NNPC into a commercially viable, profit-generating enterprise. This transformation should begin with listing the company on the Nigerian Stock Exchange. Doing so would improve transparency, ensure better corporate governance, and reduce political meddling.

An independent audit by a globally respected accounting firm is also necessary to thoroughly assess the company’s financial health.

Another pressing decision concerns the status of NNPC’s four refineries. Rather than continue to invest in unproductive assets, the board should explore selling them off to private investors.

With a workforce of around 7,000 and an annual wage bill exceeding ₦500 billion, the board must also review staffing efficiency and rationalize costs.

In addition, NNPC should focus on boosting local participation in the upstream sector, particularly in deep-water exploration. As the global energy landscape shifts toward renewables, the company must also develop a clear strategy for transitioning to green energy.

Ultimately, the new leadership is expected to develop and implement a bold, results-oriented roadmap that will enable NNPC to compete effectively on a global scale, aligning it with the operational standards of leading international oil companies.