President Bola Tinubu’s decision to dismiss Mele Kyari and other members of the Nigerian National Petroleum Company (NNPC) Limited board was driven by concerns over poor performance and the inability to meet critical production targets, according to sources within the Presidency.
Sundiata Post reports that in a sudden move on Wednesday, Tinubu announced significant changes at the NNPC, including the removal of Kyari as the Group Chief Executive Officer (GCEO). The restructuring, which takes effect on April 2, 2025, is aimed at improving the efficiency of the oil sector and regaining investor confidence.
To lead this transformation, the president appointed Bashir Ojulari as the new Group CEO, also effective from April 2, 2025.
Performance-Based Shake-Up
Presidency officials told Punch that the shake-up was necessary because the previous leadership had stagnated, failing to drive progress in the oil sector. One source explained, “The President did this because of their performance because we needed to do things differently. The former people were taking us in circles, and then some of them became part of the problem.”
Emphasizing the need for fresh leadership, the source added, “There needs to be a new direction. You need new people to bring new energy into the system. Look at them. Every one of them is capable. They are core industry professionals, real industry experts who know the industry inside and out. They are not politicians. This is the first time we have an entire cast of technocrats.”
Not About Age, But Performance Targets
Another official clarified that Kyari’s removal was not related to his age but rather to the government’s expectations for performance. “It is not about Kyari’s age. The NNPCL is a limited liability company and is not governed by civil service rules. So, it’s not about his age. There is always a need to get new brains that can deliver in new directions,” the official stated.
The source further explained Tinubu’s specific targets for the new leadership. “The President has his mandate, which is clearly stated in the statement. He gave them his performance metrics, such as the amount of crude we produce. He asked them to review all blocks because we want to know which ones are producing and which are not.”
The official highlighted key production goals set by Tinubu, stating, “We have to optimise those that are not producing. He wants them to review all our assets within a certain period and give us good production. By 2030, they must be producing 3,000,000 barrels per day, and between now and 2027, we must stabilise at 2,000,000 per day. Then, gas, we must produce 10 billion cubic meters between now and 2030. These are performance metrics, and that is how it should be done.”
Need for Reforms
The Presidency source criticized the previous administration for failing to improve production output over the years. “But the former system was not giving us that. They have been around the same spot for years. Our OPEC quota has not improved much since 1973. We have not been able to meet them. That is why reforms are important.”
With this major shake-up, the Tinubu administration hopes to reposition NNPC Limited for increased production, better efficiency, and enhanced contributions to Nigeria’s economic growth.
