President Bola Tinubu’s decision to restructure the NNPC Limited Board and appoint new leadership reflects his administration’s focus on enhancing efficiency, attracting investments, and improving Nigeria’s energy sector performance. Given the backgrounds of the new Chairman, Ahmadu Musa Kida, and the new Group CEO, Bashir Bayo Ojulari, this move could signal a strategic shift for the national oil company.
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1. Evaluation of Key Appointments
Ahmadu Musa Kida (Chairman, NNPC Board)
Strengths:
• Industry Experience: With a career spanning over 30 years at Elf Petroleum (now part of TotalEnergies), Musa Kida brings substantial industry expertise, particularly in deep-water operations and petroleum engineering. His role as Deputy Managing Director of Deep Water Services at Total Nigeria is significant, given that deep-water production is central to Nigeria’s oil sector growth.
• Strategic Leadership: Having served as an Independent Non-Executive Director at Pan Ocean-Newcross Group, he understands corporate governance and investment attraction—key to NNPC’s future direction.
• Broad Network: His tenure in global energy companies, along with his engagement in sports leadership (as NBBF president), suggests strong leadership and networking abilities.
Concerns:
• Limited National Oil Company (NOC) Governance Experience: While experienced in the private sector, leading NNPC—a state-owned entity with bureaucratic complexities and political interference—poses a different challenge. His ability to navigate government structures while pushing for reforms remains to be tested.
Bashir Bayo Ojulari (Group CEO, NNPC Limited)
Strengths:
• Proven Track Record in Energy Investments: As the Executive Vice President and COO of Renaissance Africa Energy Company, Ojulari played a key role in the recent $2.4 billion acquisition of Shell Petroleum Development Company of Nigeria (SPDC)—a milestone in Nigeria’s indigenous oil sector expansion. His hands-on experience in energy deals could help NNPC unlock investment opportunities.
• Technical and Operational Excellence: His background as a process and production engineer at Elf and Shell—combined with his leadership at Shell Nigeria Exploration and Production Company (SNEPCO)—positions him well to drive NNPC’s upstream, midstream, and downstream optimization.
• Global Perspective: Having worked in Europe and the Middle East, Ojulari brings an international oil and gas perspective, which is crucial for attracting foreign investment and aligning NNPC with global energy transition trends.
• Professional Recognition: As a fellow of the Nigerian Society of Engineers and a former chairman of the Society of Petroleum Engineers (SPE Nigerian Council), he is well-respected in the industry, enhancing his credibility to lead NNPC’s transformation.
Concerns:
• Transition from Private Sector to Public Sector Leadership: While he has worked in multinational oil companies, NNPC’s governance structure is more complex due to government oversight and regulatory challenges. His success will depend on how well he balances political considerations with commercial efficiency.
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2. Prospects for a Better NNPC Limited Performance
a) Restoring Investor Confidence & Maximizing Value from Assets
• The immediate action plan given to the board—to conduct a strategic portfolio review of NNPC-operated and Joint Venture (JV) assets—is a step in the right direction. With Ojulari’s investment experience and Kida’s deep-water expertise, NNPC is positioned to restructure its assets to improve profitability and efficiency.
• The administration’s target of raising oil investment from $17 billion (2024) to $30 billion (2027) and $60 billion (2030) will require aggressive investment promotion strategies, which both Kida and Ojulari are well-equipped to pursue.
b) Boosting Oil & Gas Production
• The administration’s goal of reaching 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030 requires:
• Fast-tracking the development of new oil fields.
• Addressing security challenges in the Niger Delta, which hinder production.
• Optimizing NNPC’s joint ventures and production-sharing contracts (PSCs).
• Given their backgrounds in deep-water operations and asset management, Kida and Ojulari could improve upstream output by enhancing production efficiency and securing investment for new projects.
• On gas commercialization, the new board is expected to scale up production to 8 billion cubic feet (bcf) per day by 2027 and 10 bcf by 2030. Ojulari’s prior experience with energy investments could be leveraged to drive gas infrastructure development, which is key to Nigeria’s industrialization and energy transition goals.
c) Refining & Domestic Fuel Security
• Increasing NNPC’s refining capacity to 200,000 bpd by 2027 and 500,000 bpd by 2030 is crucial for ending Nigeria’s reliance on fuel imports.
• The previous board made progress on rehabilitating the Port Harcourt and Warri refineries. The new leadership must ensure that:
• NNPC’s refineries operate efficiently after rehabilitation.
• The Dangote Refinery partnership is effectively leveraged to secure refined product availability.
• Modular refineries and private-sector investments are supported to enhance domestic refining capacity.
d) Strengthening Corporate Governance & Transparency
• The Petroleum Industry Act (PIA) 2021 aims to transform NNPC into a fully commercial entity. Ensuring transparency in crude sales, contract awards, and financial reporting will be critical to building credibility.
• The appointment of seasoned professionals like Austin Avuru, David Ige, and Babs Omotowa as non-executive directors adds technical depth to the board. These figures can help drive best corporate governance practices at NNPC.
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3. Key Challenges to Overcome
a) Bureaucratic and Political Hurdles
• As a government-owned entity, NNPC’s leadership often faces political interference. The ability of Kida and Ojulari to assert professional independence while aligning with government policies will be crucial.
b) Security & Oil Theft Issues
• Oil theft and pipeline vandalism remain major obstacles to achieving production targets. Strengthening pipeline surveillance, community engagement, and security partnerships will be critical.
c) Global Energy Transition & Decarbonization
• The shift away from fossil fuels poses long-term risks for NNPC. The new leadership must:
• Diversify into renewables, gas-based industries, and petrochemicals.
• Secure strategic partnerships for carbon capture and low-carbon energy solutions.
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4. Conclusion: A Potential Game-Changer for NNPC?
The appointment of Ahmadu Musa Kida and Bashir Bayo Ojulari signals a strategic shift in NNPC’s leadership approach, with an emphasis on investment attraction, production optimization, and corporate efficiency. Their strong private-sector experience, global exposure, and technical backgrounds provide a solid foundation for reforms.
However, success will depend on their ability to:
✔ Navigate political and bureaucratic challenges.
✔ Execute investment-driven reforms.
✔ Deliver on production, refining, and gas commercialization targets.
✔ Ensure transparency and corporate governance.
If they can leverage their expertise effectively while adapting to the unique dynamics of a state-owned enterprise, NNPC Limited could witness significant improvements in performance, profitability, and global competitiveness.