Eventually, President Bola Ahmed Tinubu, summoned the political will to rejig the management of the Nigerian National Petroleum Corporation Limited (NNPCL) after a period that seemed like an eternity and almost defied public outcry.
On the face value, the appointments of Ahmadu Kida as the Non-Executive Chairman and Engineer Bashir Ojulari as the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited are a welcome development given the circumstances.
Following a series of policy flip-flops and failures that caused the nation so much embarrassment and hardship, there were genuine demands for change in the leadership structure of the corporate behemoth.
These calls became strident with the removal of the corruption-laden fuel subsidy that brought about an exponential increase in the price of all petroleum products. What was disturbing, in the opinion of Nigerian consumers, was that even with the increase in prices, the products were not easily available raising concerns about the relevance of the conglomerate as the sole importer of petroleum products and calling to question why the nation must continue to import the products in any case.
Despite promises that continued to be met more in the breach, the less-than-optimum functionality of the refineries is seen by industry watchers as proof of competence fatigue that ought to be addressed most urgently.
So, when President Tinubu, who also functions as the petroleum minister made the long overdue changes, not a few heaved a sigh of relief in the expectation that some positive development is imminent. This is even as most are reserved in their optimism, constrained by the systemic drudgeries that had been the hallmark of an otherwise potentially lucrative industry player.
Still, we as a newspaper are persuaded by patriotism to give the new management the benefit of the doubt and hope that it will deliver in some key areas that are critical to the nation’s socio-economic interest. For instance, there is a compelling need for the new management to enhance the processes towards the attainment of targets in oil and gas production. It is expected that NNPCL, under the new leadership, will raise crude oil production to, at least, two million barrels daily by 2027 and three million by 2030. Additionally, it ought to be able to increase gas production to eight billion cubic feet daily by 2027 and ten billion by 2030.
To most Nigerians, increasing local refining capacity should be a priority for the new management. To this extent, therefore, NNPCL owes itself a duty to boost local crude oil refining capacity to 200,000 barrels per day by 2027 and 500,000 barrels per day by 2030. This will entail the maintenance of the refineries to ensure that targets are met to reduce the drain on foreign reserve that fuel importation has become.
Regardless of global climate change concerns, the oil industry has remained a huge attraction for investors. It is expected that the new team at the helm of NNPCL will tap into this lucrative portfolio and increase investments in the oil sector to $30 billion by 2027 and $60 billion by 2030. This is seen by experts as the benchmark that can be improved upon through a diligent managerial input within the period.
As a new team, it is given that a strategic portfolio review is uppermost in its scale of priorities. Nigerians expect the new management to conduct a strategic review of NNPC-operated and joint venture assets to align with value maximisation objectives.
In the opinion of this newspaper, NNPCL should uplift its operational efficiency. This is necessary as one of the ways of boosting investor confidence. We are compelled to aver that an enhanced operational efficiency will, in turn, restore investor confidence, strengthen local content, and advance gas commercialisation efforts.
It is pertinent to stress that these are baselines that are meant to guide the new management as it grapples with the intricacies of this most volatile industry. They ought not to be constrictions to any plan that has the potential to add value to operations and processes.
It is gratifying, in our view, that the new helmsman, Ojulari, is coming from the private sector where he served, at various times, as Managing Director, Shell Nigeria Exploration and Production Company (SNEPCo) (2015–2021), Board Chairman of BAT Advisory and Energy Company Nigeria Ltd and Executive Vice President and Chief Operating Officer, Renaissance Africa Energy Company.
We believe that he will bring to his new job the experience he garnered over the years, relying essentially, on the dynamics of an industry that survives on international best practices.
However, we are not unaware of the political and other pressures he will have to deal with, just as we feel assured that national interest will be his guiding principle. It is a call to duty that will test his will. Nigerians expect him to excel. We hope he does.
