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In a significant move to overhaul its oil sector, Nigeria has appointed Bayo Ojulari, a former executive at Shell, to head the state-owned Nigerian National Petroleum Corporation (NNPC). This appointment is part of broader reforms aimed at addressing long-standing issues of inefficiency, pollution, and allegations of corruption within Nigeria’s crucial oil industry.
NNPC Restructure Under New Leadership
The presidency announced on Wednesday that Mr. Ojulari’s selection is a pivotal element of a “crucial” restructuring of the NNPC. This shake-up includes the replacement of the entire NNPC board, signaling a comprehensive effort to revitalize the corporation.
Driving Economic Growth Through Oil Sector Reform
According to the presidency, this organizational change is essential to stimulate economic expansion in Nigeria, a leading oil exporter in Africa. The restructuring occurs amidst a period of economic challenges under President Bola Tinubu, marked by surges in the prices of essential goods like food and fuel.
Boosting Oil Output and Refining Capability
The presidency’s statement regarding the NNPC changes emphasized President Tinubu’s ambition to augment Nigeria’s oil production and enhance its domestic refining capabilities. This initiative is seen as vital for the nation’s economic recovery and stability.
Reports from AFP indicate that Nigeria’s oil output had decreased to below one million barrels daily in 2023. The current administration aims to elevate production to two million barrels per day by 2027 and further to three million barrels per day by 2030.
Ojulari’s Mission and Background
Entrusted with this ambitious objective, Mr. Ojulari succeeds Mele Kyari as the head of NNPC. His extensive experience in the oil and gas sector is expected to be instrumental in achieving these targets.
Mr. Ojulari’s career with Shell Nigeria commenced in 1991, spanning 24 years and encompassing various roles across Nigeria, Europe, and the Middle East. He progressed to become Managing Director at Shell, a position he held for six years before departing in 2021. Subsequently, he joined BAT Advisory and Energy Company, an investment advisory firm, and later, Renaissance Africa Energy Company in the preceding year.
Addressing NNPC’s Challenges and Public Image
Beyond increasing oil production, Mr. Ojulari is anticipated to focus on improving the NNPC’s public perception. Historically, under previous administrations, a significant portion of the company’s revenues did not reach the national treasury. It was only in recent years that the NNPC began publicly releasing its financial records.
The NNPC’s financial health has also been a concern. Last September, the corporation acknowledged a debt of approximately $6 billion (£4.5 million), highlighting the financial strain it has been operating under.