Published on: April 3, 2025
Content:
•Experts set agenda for oil, gas development
By Udeme Akpan, Energy Editor
There are indications that more heads will roll in the Nigerian National Petroleum Company Limited, NNPCL and its subsidiaries as Engineer Bayo Ojulari yesterday assumed office as the new Group Chief Executive Officer.
This was even as the management and staff of NNPC Ltd welcomed the appointment of a new GCEO Officer and Board of Directors for the company by President Bola Ahmed Tinubu.
However, checks Vanguard showed that the reorganisation would start from the corporate headquarters to the subsidiaries, including Upstream, Gas and Power, new Energy, Downstream and Non-Energy businesses.
The checks indicated that the reorganisation would be targeted at ensuring that round pegs are placed into round holes based on the commitment of the new leadership to achieve national goals and objectives in the oil and gas industry.
It was confirmed that the businesses to be impacted include the NNPC E&P Limited (NEPL), NNPC Upstream Investment Management Services (NUIMS), NNPC Energy Services Limited (EnServ), NNPC Engineering and Technical Company (NETCO), NNPC New Energy Limited (NNEL), NNPC Gas Infrastructure Company (NGIC), NNPC Gas Marketing Limited (NGML), and NNPC Gas & Power Investment Services (NGPIS).
They also include NNPC Trading Limited (NTL) NNPC Retail Limited (NRL), NNPC Shipping Limited (NSL), NNPC RefChem Limited (NRCL), NNPC Downstream Investment Services (NDIS), Nigerian Pipelines and Storage Company Limited (NPSC), National Energy Reserve Management Company (NERMC), NNPC Non-Energy Investment Services (NNIS), NNPC Foundation Limited/Gte, NNPC Academy, NNPC Properties Limited (NPL), and Health Maintenance Organization (HMO) and Research Technology and Innovation (RTI).
Meanwhile, in an interview with Vanguard, Prof Wumi Iledare, Executive Director of Emmanuel Egbogah Foundation, called on the new team to revisit the Naira for Crude deal with local refineries.
He said: “Second is selling NNPCL shares to the public with a limit to what individuals can buy and restricting corporate buyers. Third, divest some JV shares in divested IOC shares.
“Fourth, rekindle, restructure, and rebound NNPC Limited along the intent of the PIA. Fifth, disavow agency mindset to please the branch instead of the federation and focus on the commercial mandate in the law.
“Sixth, promote economy of scale mentality. Seventh and perhaps most important, encourage more recruitment, training and capacity building to increase productivity.”
Prof. Iledare commended the former GCEO, Mele Kyari for his contributions toward the development of the industry, adding that with their rich professional background and experiences, the new team would likely deliver value to the NNPCL and Nigeria’s oil and gas industry.
Similarly, the Chief Executive Officer, CEO, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said: “The quality of the governance and management of our oil and gas sector has been the bane of our economic progress over the past few decades. The country has not been able to leverage the huge oil and gas resources to advance our economic development frontiers as many other oil producing countries have done.
“Our peers as oil producing countries have done much better – UAE, Norway, Saudi Arabia etc. We have largely succeeded in building a huge rent economy around our oil and gas sector.
“In all of these, our national oil company [NNPC] is a very strategic institution. If we must change the narrative, we must get it right with the governance and management of the NNPC.
“Recent changes in the NNPC signal the commitment of the present administration to chart a new course. The new management team is populated by professionals with a proven record of performance in the private sector segment of the oil and gas sector. They are therefore expected to change the face of the sector. We would like to see an NNPC that is comparable to its peers like Saudi Aramco, China National Petroleum Corporation, PETRONAS etc.
“We expect to see a dramatic improvement in corporate governance, better optimisation of oil and gas assets, a PPP investment framework that would drive efficiency, productivity and profitability.
“We would also like to see an end to refineries that have become a huge burden rather than assets on the economy. Above all is the imperative of fostering the highest standards of corporate governance. The listing of the NNPC Limited on both national and international stock exchanges would reinforce the desired corporate governance standards.
“However, all of these would be difficult to achieve if the political environment does not complement the realisation of this vision. It is therefore very critical that the independence of the new NNPC is guaranteed with zero tolerance for interference from the Political leadership, the national assembly and the bureaucracy. These are critical success factors.”
In a statement, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said: “The Management and staff of NNPC Ltd have welcomed the appointment of a new Group Chief Executive Officer, Mr. Bayo Ojulari, and Board of Directors for the Company by President Bola Ahmed Tinubu.
“We extend our profound appreciation to the outgoing GCEO, Mr. Mele Kyari, and the former Board Members for their selfless and dedicated service to the Company and to the nation.
“Mr. Kyari’s leadership and tireless efforts have left an indelible mark on NNPC Ltd., and we are sincerely grateful for his outstanding contributions. We wish him and all departing Board Members continued success and fulfilment in their future endeavours.”
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