Mixed reactions trail reconstitution of NNPCL NNPCL’s Utapate crude grade, illegal refineries connections destroyed

Mixed reactions trail reconstitution of NNPCL NNPCL’s Utapate crude grade, illegal refineries connections destroyed

MIXED reactions have trailed changes in the management of the Nigerian National Petroleum Company Limited (NNPC Ltd.) and its board by President Bola Tinubu.

The President had on Wednesday reconstituted the board of the NNPC Ltd., removing the Chairman, Chief Pius Akinyelure and the Group Chief Executive Officer (GCEO), Malam Mele Kyari.

Tinubu removed all the board members appointed with Akinyelure and Kyari in November 2023.

The new 11-man board has Mr Bayo Ojulari as the Group Chief Executive Officer (GCEO) and Ahmadu Kida as Non-Executive Chairman.

Some experts have reacted to the development in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.

Mr Olabode Sowunmi, an oil and gas expert, described the development as a calculated effort to put some life and energy into the oil and gas industry.

He said that NNPC Ltd. was a limited liability company with the Federal Government as its major shareholder.

“It is a calculated effort to put some life and energy into the industry.

“It is expected that this will mean new thinking, new focus and more results,” he said.

According to Sowunmi, even the proposed Initial Public Offer (IPO) which is targeted at listing NNPC in the stock market, will not have prevented Kyari’s removal, as he is a government appointee.

“The government can remove any government appointee at any time,” he said.

Yushau Aliyu, an economic expert, said the changes were timely, especially when the IPO was underway.

“However, the IPO must be professionally determined by relating to the development in the oil market as well as the willingness of the general public.

“Investment potential with the economic growth targets of Nigeria 2030 should also be considered,” he said.

He said that the President was empowered by the Petroleum Industry Act (PIA 2021) to dissolve both the NNPC Ltd. board and the CEO.

Another expert, Dr Sand Mba-Kalu, said that Nigeria’s oil and gas sector needed stability and predictability, along with strict adherence to legal standards, to attract sustainable investment and encourage transformation.

According to him, the move represents a bold initiative within the larger framework of aiming to meet our national production and refining targets in the energy sector by 2027 and 2030.

Mr Lawrence Nze, an Economist, said that most of the policies introduced under Kyari never solved the challenges in the oil sector.

Nze said that the Naira for crude policy appeared not to be working since it had not resulted in any serious reduction in price.

According to him, Dangote Refinery was gradually achieving that with its slight reduction in ex-depot price, which usually affects pump price, but suddenly, authorities in the oil sector cancelled it.

“To me, it looks like a sabotage against the people. Why can we not stop importation? It means that there is a deal that someone or group of people are benefiting from.

“It is not rocket science to get the energy sector working. Nigerians want cheaper petroleum products, is that too much to ask for?

“Only President Tinubu knows why he sacked Kyari, and whatever be the reason, Nigerians should have access to cheaper petroleum products, especially fuel.

“I will advise the president to ensure that the Naira for crude policy works in the country to enable local refineries to operate on a cheaper scale,” he said.