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Nigeria’s President Bola Tinubu has appointed former Shell executive Bayo Ojulari to lead the state-owned Nigerian National Petroleum Company (NNPC), as part of sweeping reforms to revamp the country’s struggling oil sector.
The presidency described Ojulari’s appointment, along with the replacement of the entire NNPC board, as a “crucial” step to drive economic growth in Africa’s top oil-producing nation. The restructuring comes as the company faces allegations of corruption, inefficiency, and mounting financial strain.
Despite Nigeria’s vast oil resources, the sector has been plagued by low production and heavy reliance on fuel imports. While most of its crude oil is exported, the country lacks sufficient refining capacity and has long depended on a controversial fuel subsidy—scrapped by Tinubu nearly two years ago. The removal triggered a sharp rise in fuel prices, though many suspect the government is still indirectly subsidizing costs through the NNPC, a claim it denies.
The NNPC, which last year admitted to debts of around $6 billion, has struggled with declining output, with production falling below one million barrels per day in 2023. Tinubu’s administration aims to boost this to two million barrels per day by 2027 and three million by 2030.
Ojulari, who spent three decades in the oil industry, including six years as managing director of Shell Nigeria, is now tasked with revamping the NNPC and improving its tarnished reputation. Experts praise his expertise but warn of major obstacles ahead.
“The commission is deeply indebted. Even NNPC itself doesn’t fully know how much it owes,” energy analyst Henry Adigun said. “Corruption and inefficiency have plagued its accounting for years.”
With a newly appointed board of seasoned oil industry professionals, the government hopes to restore transparency and efficiency. However, experts caution that political interference could hinder reforms.
“If he doesn’t succeed, it will be because of government meddling,” Adigun added.
As Nigeria seeks to overhaul its oil industry, all eyes will be on whether Ojulari can navigate the challenges and deliver on the government’s ambitious production targets.
