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 for the nation’s benefit, intended to salvage the country’s key public entity from pervasive corruption and internal control. These changes were essential due to the alarming issues left behind by the administration led by Mele Kyari, during which NNPC slipped into opaqueness, fiscal mismanagement, and poor operations, even with the progressive aims set forth by the Petroleum Industry Act (PIA) 2021.
During Kyari's tenure, NNPC Limited fell short of meeting fundamental benchmarks for corporate governance and transparency typical of a commercially driven national petroleum firm. Annually, significant sums amounting to billions of dollars from crude oil sales went unaccounted for, underreported, or improperly allocated through unclear processes. The purported fuel subsidy program, with NNPC acting as the main distribution entity, turned into an economic black hole—marked by severe exaggerations, absent validation systems, and claims of fabricated quantities along with instances of round-trip transactions. Simultaneously, essential investment choices faced delays, production levels dropped in the upstream sector, and Nigeria found itself incapable of fully capitalizing on elevated global oil costs owing to poor management and financial leaks.
The conversion of NNPC into a limited liability company was meant to usher in an age of business rigor and transparency. However, during Kyari’s term, these intentions were overshadowed as outdated practices persisted but now appeared under a modern corporate facade. The firm avoided oversight by not releasing audited reports, neglecting substantial interaction with stakeholders—the Nigerian populace—and rejecting restructuring initiatives purportedly due to concerns over national security or market stability. Such actions eroded trust among investors, hindered financial investments into the industry, and resulted in the stagnation of Nigeria’s oil and gas sector development.
At this crucial moment—when Nigeria needs to fortify its financial foundation, speed up the commercialization of gas, draw investment, and keep pace with worldwide shifts toward cleaner energy—the NNPC should not remain a burden on public funds or an entity devoid of 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 credibility, and transform NNPC into a genuinely outcome-focused national petroleum firm.
This instant signals the start of an overdue transformation—from focusing on rent-seeking activities to fostering value creation, moving from secrecy to transparency, and transitioning from institutional inertia to strategic rejuvenation. This pivotal change is crucial for NNPC and, consequently, for Nigeria’s economic prospects.
Mohammed works as a financial and public relations analyst.
Provided by Syndigate Media Inc. ( Syndigate.info ).
