Nigerian president sacks board of state oil company
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President Bola Tinubu dismisses Nigeria's state-run oil company's leadership and appoints a former Shell executive to lead a major overhaul.
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Bola Tinubu, President of Nigeria, arrives for the closing session of the New Global Financial Pact Summit on June 23, 2023, in Paris. (AP)
Nigerian President Bola Tinubu removed the entire leadership of Nigeria's state-owned oil company on Wednesday, appointing a former Shell executive to lead the organization as part of a major restructuring.
Among those dismissed were Mele Kyari, the group chief executive of the National Petroleum Company (NNPC) Limited, and Pius Akinyelure, the company's chairman and a close ally of Tinubu.
Kyari was swiftly replaced by Bayo Ojulari, a former managing director of Shell Nigeria Exploration and Production Company (SNEPCO), a subsidiary of Shell.
"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," Tinubu's media advisor, Bayo Onanuga, said in a statement.
The NNPC has faced ongoing allegations of corruption, political interference, and poor management of Nigeria’s oil resources.
The new leadership will focus on reviewing strategic partnerships, boosting daily oil output to address a revenue gap, meeting rising local demand, and tackling widespread oil theft.
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Nigeria's oil production fell below a million barrels per day in 2023, but the government aims to increase output to two million barrels per day by 2027 and three million by 2030.
With a mix of state and private sector involvement, the NNPC is expected to contribute at least 10 percent of the country's daily oil output by 2027.
A source in the presidency informed AFP that President Tinubu was worried about the "crisis of confidence" in the oil sector, which is crucial to the country’s ongoing economic reforms. However, another insider emphasized that the dismissals were not a criticism of the previous board.
"There are certain positive reforms that the president wants to achieve in the industry," the source told AFP, while also offering praise for Kyari's role in reviving the company's refineries.
