President Bola Ahmed Tinubu has taken a significant step by dismissing Mele Kyari from his position as the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL). In a swift move, Tinubu appointed Engr. Bashir Bayo Ojulari as the new head of the company, making him the successor to Kyari. This decision is part of a broader reshuffling that also saw the appointment of Ahmadu Musa Kida as the new non-executive chairman of NNPCL, signaling a significant leadership change within the organization. Along with these key appointments, President Tinubu also removed all board members who had been appointed in November 2023, further indicating his intention to bring about fresh leadership at the helm of NNPCL.
This shakeup comes at a time of rising tensions between NNPCL and the Dangote Refinery, a major privately owned refinery in Nigeria. The two entities had previously entered into a deal where NNPCL would supply crude oil to Dangote Refinery in naira. This arrangement was aimed at stabilizing the Nigerian naira and helping to reduce fuel prices. However, the agreement came to an end a month ago and was not renewed, which has since led to an increase in fuel prices. As a result of the termination of the deal, fuel retailers have begun importing fuel, as Dangote Refinery, which has since switched to selling fuel in dollars, ceased supplying fuel to them under the previous terms.
In the aftermath of the leadership changes at NNPCL, Adedapo Segun, who took over as Chief Financial Officer (CFO) from Umaru Isa Ajiya in November 2023, has been appointed to the newly restructured board of NNPCL. The restructuring also includes the appointment of six non-executive directors representing various geopolitical zones of Nigeria. The new members include Bello Rabiu from the North West, Yusuf Usman from the North East, and Babs Omotowa, who is a former Managing Director of the Nigerian Liquefied Natural Gas (NLNG), representing North Central. In addition, Austin Avuru from the South-South, David Ige from the South West, and Henry Obih from the South East have been named to the board. Mrs. Lydia Shehu Jafiya, the Permanent Secretary of the Federal Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.
This reshuffling is seen as a pivotal moment for NNPCL as it embarks on a new phase under fresh leadership, and the implications of these changes will be closely watched, especially in relation to the ongoing fuel supply challenges and the broader economic impact of the crude-for-naira deal with Dangote Refinery.
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