NNPCL Overhauls Leadership, Sacks Refinery Heads Amid Performance Woes

In a sweeping move to address persistent operational challenges, the Nigerian National Petroleum Company Limited (NNPCL) has initiated a major leadership restructuring, removing the managing directors of its three major refineries—Port Harcourt, Warri, and Kaduna. The shake-up, confirmed by multiple reliable sources, also saw the exit of several senior executives, including Bala Wunti, the former head of the National Petroleum Investment Management Services (NAPIMS). Additionally, officials with just one year remaining until retirement were directed to step down, signaling a clear intent to inject fresh energy into the organization.

The NNPCL’s spokesperson, Olufemi Soneye, has not issued an official statement regarding the changes. However, the restructuring follows the high-profile dismissal of former Group Chief Executive Officer Mele Kyari and the company’s board on April 2, 2025, by President Bola Tinubu. Sources close to the presidency revealed that the decision was driven by the leadership’s failure to meet critical production targets and address longstanding inefficiencies within the state-owned oil company.

A Push for Performance and Accountability

The leadership overhaul is part of a broader strategy to reposition NNPCL as a more efficient and productive entity. Presidency sources emphasized that President Tinubu has set stringent performance metrics to transform Nigeria’s oil and gas sector. These include increasing crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030, as well as boosting gas output to 10 billion cubic meters by 2030. A senior official, speaking anonymously, noted that the previous leadership had become “part of the problem rather than the solution,” necessitating a bold change in direction.

To steer NNPCL toward these ambitious goals, a new 11-member board has been appointed, with Bayo Ojulari as the Group Chief Executive Officer and Musa Ahmadu-Kida as the non-executive chairman. Ojulari, hailing from Kwara State, brings significant industry experience, having previously served as Executive Vice President and Chief Operating Officer at Renaissance Africa Energy. Under his leadership, Renaissance spearheaded a landmark $2.4 billion acquisition of Shell’s assets in Nigeria, underscoring his credentials in navigating complex energy deals.

Among other notable appointments is Maryam Idrisu, who has been named Managing Director of NNPC Trading, the subsidiary responsible for the company’s crude oil sales. These appointments reflect a deliberate effort to bring in leaders with proven track records to drive NNPCL’s transformation.

Refinery Woes Prompt Leadership Purge

The removal of the managing directors of the Port Harcourt, Warri, and Kaduna refineries is widely seen as a direct response to the facilities’ persistent underperformance. Nigeria’s refineries have long been a source of frustration, plagued by operational inefficiencies, frequent shutdowns, and costly rehabilitation efforts that have yielded limited results. The Warri refinery, for instance, has come under intense scrutiny following a failed $897 million rehabilitation program. Despite claims by former Group CEO Mele Kyari that the facility was operational, it was forced to shut down in January 2025 due to a major safety issue, raising questions about the transparency and effectiveness of the refurbishment process.

Similarly, the Port Harcourt refinery, which resumed operations in November 2024 after years of dormancy, has been operating at less than 40% of its installed capacity. This underwhelming performance has fueled skepticism among industry experts about NNPCL’s ability to deliver on its promises of revitalizing the country’s refining capabilities. The Kaduna refinery, meanwhile, has remained largely non-functional, further exacerbating Nigeria’s reliance on imported petroleum products despite its status as a major oil producer.

The poor state of the refineries has not only strained NNPCL’s finances but also undermined public confidence in the company’s leadership. Industry analysts have long called for greater accountability and transparency in the management of these critical assets, which are seen as pivotal to reducing Nigeria’s dependence on fuel imports and stabilizing domestic energy prices.

A Critical Juncture for NNPCL

The leadership changes come at a critical juncture for NNPCL, which has faced mounting pressure to improve its performance amid Nigeria’s economic challenges. The company plays a central role in the country’s economy, serving as the primary source of foreign exchange earnings through crude oil exports. However, operational inefficiencies, coupled with global fluctuations in oil prices, have limited its ability to maximize revenue and deliver tangible benefits to Nigerians.

President Tinubu’s administration has made it clear that business as usual will no longer suffice. The new leadership, under Bayo Ojulari, faces the daunting task of turning around NNPCL’s fortunes while meeting the president’s aggressive production targets. This will require not only operational reforms but also significant investments in infrastructure, improved governance, and greater collaboration with private sector partners.

Industry Reactions and Expectations

The leadership shake-up has elicited mixed reactions from industry stakeholders. Some analysts view the changes as a necessary step to address systemic issues within NNPCL, applauding the appointment of experienced professionals like Ojulari and Idrisu. Others, however, remain cautious, noting that previous restructuring efforts have often failed to deliver lasting results. The success of the new leadership will depend heavily on their ability to address the root causes of the refineries’ underperformance and restore public trust in NNPCL’s operations.

For now, the spotlight is on NNPCL’s new board and management team as they navigate the complex challenges of revitalizing Nigeria’s oil and gas sector. With clear performance benchmarks set by the presidency, the stakes are higher than ever. Whether this latest overhaul will mark a turning point for NNPCL or become another missed opportunity remains to be seen.

As Nigeria grapples with the dual imperatives of economic growth and energy security, the performance of NNPCL’s new leadership will be closely watched by both citizens and investors. The road ahead is fraught with challenges, but the opportunity to transform Nigeria’s oil industry into a global powerhouse is within reach—if the right steps are taken.