By Alfaritsy The recent restructuring of the NNPC Limited board and leadership by President Bola Ahmed Tinubu goes beyond just changing personnel; it represents a crucial step taken for the nation’s benefit. This move aims to save one of Nigeria’s key state enterprises from pervasive corruption and internal control. These changes were necessitated by the alarming issues that arose during Mele Kyari’s tenure as head of management. Under his guidance, despite the progressive goals set forth by the Petroleum Industry Act (PIA) 2021, NNPC slipped into obscurity, mismanagement, and inefficacy.
During Kyari’s tenure, NNPC Limited fell short of meeting fundamental principles of corporate governance and transparency typically required from a commercially focused national petroleum firm. Annually, significant sums amounting to billions of dollars derived from crude oil sales went unreported, were inaccurately reported, or were improperly allocated through unclear practices. The so-called fuel subsidy program, managed primarily by NNPC, turned into a financial black hole—marked by severe exaggerations, nonexistent checks and balances, along with claims of fabricated quantities and capital circulation issues. Concurrently, essential investment choices faced delays, production levels dropped in the upstream sector, and the nation could not fully capitalize on elevated global oil costs because of poor management and resource leaks.
The transformation of NNPC into a limited liability company was meant to usher in an age marked by greater business acumen and transparency. However, during Kyari’s leadership, these changes merely served as a facade for maintaining outdated practices. The firm dodged oversight by not releasing audited reports, neglecting meaningful dialogue with stakeholders—the Nigerian populace—and opposing systemic improvements under the pretense of safeguarding national security or market stability. Consequently, this eroded investors’ trust, hindered financial investments in the industry, and resulted in Nigeria’s oil and gas ecosystem stagnating.
At this crucial moment—when Nigeria needs to solidify its financial foundation, speed up the commercialization of gas, draw investments, and keep pace with worldwide shifts towards cleaner energy—theNNPC should not remain a burden on public funds or an entity lacking transparency. With the newly appointed board and leadership selected based on their technical expertise, moral integrity, and geographical representation, they carry a fresh mission: to overhaul operations, restore confidence, and transform NNPC into a genuinely outcome-focused national petroleum corporation.
This instant signals the start of an overdue transformation—from focusing on profit extraction to generating real value, from operating in secrecy to embracing transparency, and from allowing institutions to become stagnant to driving strategic rejuvenation. This pivot is crucial for NNPC and, consequently, vital for Nigeria’s economic prospects.
Mohammed works as both a finance and public affairs analyst.
Provided by Syndigate Media Inc. (
Syndigate.info
).