WEDNESDAY’s overhaul of Nigeria’s state-run oil company NNPCL did not come as a surprise to keen observers who have vociferously pressed for reforms in the upstream and downstream sectors after the epochal birthing of the Petroleum Industry Act (PIA) 2021, and the subsequent commercialisation of the state-run oil company in July 2022.
Having given the Nigerian National Petroleum Company Limited (NNPCL) about two years to ramp up performance, President Bola Tinubu sacked all the Board members of the company on April 2, 2025.
Presidential spokesman Bayo Onanuga was unequivocal with the reasons for the restructuring, which he said was “crucial for enhancing operational efficiency, restoring investor confidence, boosting local content, driving economic growth, and advancing gas commercialisation and diversification”.
Though some commentators have described the restructuring as long overdue, it is better late than never.
Significantly, the president removed Mele Kyari as the company’s group chief executive officer. Kyari, one of the “star boys” bequeathed to Tinubu by his predecessor, Muhammadu Buhari, led the oil company from July 7, 2019, till his sacking on April 2, 2025.
Kyari worked in the NNPCL for more than three decades before his removal. When he clocked 60 in January 2025, there were protesting voices demanding his removal, but the president shunned the critics and retained him.
He was one of the few heads of parastatals not immediately replaced by the new government. Others include NAFDAC boss Mojisola Adeyeye and NDLEA chair Buba Marwa.
However, Tinubu wielded the big stick on Wednesday, removing Kyari, and NNPCL Board Chair, Pius Akinyelure, as well as all other board members appointed with Akinyelure and Kyari in November 2023.
In their stead, the president appointed a new 11-man board with Bashir Ojulari as the Group CEO and Ahmadu Kida as non-executive chairman. Other Board members are Adedapo Segun, Bello Rabiu, Yusuf Usman, Babs Omotowa, Austin Avuru, David Ige, Henry Obih, Lydia Jafiya, and Aminu Ahmed.
Now that there are new sheriffs in town, here are some urgent tasks before the new NNPCL Board:
1. Immediate Resumption Of Naira-For-Crude Sale To Dangote Refinery, Others
Going by the pulse of millions of Nigerians on social media, they expect the new NNPCL leadership under Kida and Ojulari to immediately resume the sale of crude oil to Dangote Refinery and other local refiners in line with the presidential mandate of July 2024.
The resumption of Naira-denominated crude sales, experts believe, would reduce the strain on the US dollar and guarantee the price stability of petroleum products.
It would also reduce the pump price per litre of petrol, which suddenly jumped from ₦860 in March 2025 to around ₦1,000 in April 2025 after the NNPCL and Dangote Refinery both announced the termination of their six-month contract.
The crude dispute stemmed from a price war between the two parties as the Dangote Refinery stopped the sale of petrol in Naira till further notice. “This is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars,” the company said in a statement.
The $20bn refinery based in Lagos said the sales of its products in Naira have exceeded the value of Naira-denominated crude it has received from the NNPCL.
Nigerians are expected to experience some relief from high, dollar-denominated imported fuel if talks on the resumption of naira-for-crude succeed.
2. Increase Oil & Gas Production
The new NNPCL Board is expected to ramp up the country’s oil production capacity from an average of 1.5 million barrels per day, in line with its OPEC quota.
Already, the Tinubu administration targets raising oil production to two million barrels daily by 2027 and three million barrels daily by 2030.
The government also wants gas production to be increased to eight billion cubic feet daily by 2027 and 10 billion cubic feet by 2030.
The Port Harcourt Refinery is one of the state-owned plants which recently came back on stream.
3. Boost Efficiency At Port Harcourt & Warri Refinery
The new NNPCL team is expected to boost output at the Port Harcourt and Warri refineries, which came back on stream last December after it had been shut down for years due to technical issues.
Steady output from the two refineries, experts believe, would complement efforts by other indigenous refineries like Dangote Refinery to guarantee supply stability.