Nigeria:Tinubu reshuffles NNPC leadership to revive oil production

The Nigerian president has replaced the leadership of the Nigerian National Petroleum Company amid declining output and eroding investor confidence.

Share:

The President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, has carried out a full replacement of the leadership of the Nigerian National Petroleum Company (NNPC), the state-owned oil corporation, according to an official statement released on 2 April. The decision comes as Africa’s leading oil producer continues to suffer from a steady decline in crude oil production, which dropped below one million barrels per day in 2023—well short of the government’s target of two million barrels by 2027.

Strategic shift at the helm of NNPC

Mele Kyari, former Group Chief Executive Officer of NNPC Limited, and the company’s Chairman, Pius Akinyelure, were dismissed. Both had held their roles for several years, with Akinyelure known as a close ally of the president. They are being succeeded by Bayo Ojulari, former Managing Director of Shell Nigeria, along with new board members whose names have not yet been disclosed.

Presidential spokesperson Bayo Onanuga stated that the restructuring aims to enhance operational efficiency, rebuild investor confidence, and support gas market diversification. The new board is also expected to increase NNPC’s contribution to national oil output, with the president targeting 200,000 barrels per day by 2027 and 500,000 barrels per day by 2030.

Economic pressure and investor concerns

According to a source close to the presidency, the move addresses a “trust crisis” between NNPC and private sector players, though it is not intended as a punitive action against the previous leadership. Nigerian economist Kelvin Emmanuel remarked that the dismissals had “been long expected” due to what he described as underperformance, despite NNPC posting a record profit of NGN3.3tn (approximately $2bn) for 2023.

Despite that result, the company later acknowledged in a follow-up statement that it continued to face significant financial constraints. Observers noted that the company’s operational difficulties have had a direct impact on the Nigerian economy, which has been under strain following reforms by President Tinubu—including the removal of fuel subsidies and liberalisation of the national currency. These changes contributed to inflation exceeding 30% in 2024.

Internal reactions and political dynamics

The appointment of Bayo Ojulari, who recently led the Renaissance consortium in acquiring Shell’s onshore assets in Nigeria, comes amid growing political tension. Though both Ojulari and Tinubu share Yoruba ethnic roots and the same religious background, their different regional origins have not deterred opposition claims of an ethnically driven agenda.

Nigeria remains divided along religious and regional lines, with the predominantly Muslim north and Christian-majority south often split on political matters. According to Ikemesit Effiong, Head of Research at SBM Intelligence, the sudden reshuffle may unsettle investors, particularly within an already polarised political environment.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.