Tensions are mounting within Nigeria’s oil and gas sector as the tenure of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, nears its end.
Kyari, who will turn 60 on January 8, 2025, may soon step down from his role, sparking speculation about who will take over the reins of the national oil giant.
Kyari’s leadership has been marked by significant transformations, including the transition of NNPCL into a limited liability company under the Petroleum Industry Act (PIA) and efforts to improve transparency in Nigeria’s oil sector. His potential departure has raised concerns about the continuity of these reforms and the strategic direction of the company.
Many industry analysts are watching closely, noting that NNPCL’s stability is critical for Nigeria’s economy. As the nation’s foremost revenue-generating entity, any disruptions in leadership could have far-reaching implications for the oil and gas industry, fiscal stability, and ongoing energy reforms.
This came as some other players in the space stated that the GCEO’s tenure is expected to terminate in 2027, in compliance with Section 59 (2) of the Petroleum Industry Act 2021 which states that, “The composition of the Board of the NNPC Limited shall be determined in accordance with the Companies and Allied Matters Act and its Articles of Association.”
In July 2022, the NNPC transitioned from a public corporation to a limited liability company, and Kyari moved from being a Group Managing Director to a Group Chief Executive Officer.
Kyari, appointed by former President Muhammadu Buhari in July 2019, is a veteran in the oil industry, having worked at the NNPC for the last 32 years.
His over five years on the job as NNPC’s boss is the longest that anyone has spent in the cushiest office in the Nigerian oil industry since the country’s return to democracy in 1999.
The NNPC has had 19 managing directors since its formation in 1977, with only two of them (Professor Funsho Kupolokun (Ondo, 2003-2007), Augustine O. Oniwon (Kogi, 2010-2012) from the South-West and North-Central.
Kyari is also one of the few appointments alongside the Chief Executive of the Nigerian Upstream Petroleum Commission, Gbenga Komolafe, inherited by President Bola Tinubu that has not yet been dismissed.
Recently, a United States-based Nigerian professor of journalism, Farooq Kperogi, called out Tinubu’s relentless Yoruba-centric take-over of the NNPCL.
Kperogi, in an article titled, ‘Tinubu’s Buharisation of the NNPC’, accused President Tinubu of appointing Yoruba people to key positions at the Nigerian National Petroleum Company Limited.
Reports stated that an anonymous source had claimed that a certain Bayo Ojulari was being proposed as GCEO of the NNPCL after the expiration of Mele Kyari’s term.
Also, the immediate past Governor of Kaduna State, Nasir El-Rufai, in a post on X, said two wrongs do not make a right, a statement that is believed to be referring to Buhari’s bias for northerners in his appointments.
The former Kaduna governor, however, advocated for sensible inclusion over what he described as arrogant exclusion.
The post read, “DECEMBER MESSAGE: Two wrongs do not make a right. Sensible inclusion always trumps arrogant exclusion!!.”
The article further sparked widespread reaction and condemnation, forcing the NNPCL spokesperson, Femi Soneye, to issue a response stating that employment, promotions, appointments, and movements of leaders in the company were not influenced by ethnicity, tribe, religion, or political affiliation.
Soneye said merit, business requirements, and expertise remain the considerations.
“First, employment, promotions, appointments, and movements of business leaders at the NNPC are not influenced by ethnicity, tribe, religion, or political affiliation. Therefore, decisions within the NNPC are guided strictly by merit, business requirements, and expertise.
“This approach ensures that only the most qualified and competent individuals occupy positions that are critical to the company’s success. Significantly, our company focuses on efficient and effective service delivery, which is anchored on the commitment of a qualified work team,” he stated.
The spokesperson also said the President has not in any way interfered in the operations or leadership movements within the NNPC.
In November 2023, President Tinubu approved the appointment of the new board and management team for the national oil company and retained Kyari as the GCEO.
Reacting to comments about the possible removal of Kyari as NNPCL boss, Soneye said, “The claim is entirely false and misleading, lacking credibility and showing clear signs of manipulation. The GCEO’s tenure has been exceptional, marked by numerous firsts and remarkable accomplishments for NNPC Ltd. Kindly disregard these baseless and dubious claims.”
However, a follow-up question to confirm the expiration date of the tenure of the GCEO received no reply from the NNPCL’s spokesperson till when this report was filed.
(Punch)
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