NNPCL’s latest restructuring in historical context

The recent leadership overhaul at the Nigerian National Petroleum Company Limited (NNPCL) marks one of the most decisive interventions in the company’s history, reflecting the Tinubu administration’s urgency in revamping the state oil giant to meet national energy goals. However, this is not the first time NNPCL has undergone major structural reforms.

Past NNPCL Restructuring Efforts:

2016 Buhari-Era Shake-Up:

Under President Muhammadu Buhari, NNPC (as it was then known) experienced a major reorganisation in its fight against corruption in the industry. Several subsidiaries were split and streamlined, and Mele Kyari was later appointed in 2019 as Group Managing Director, with a mandate to reform operations. However, these efforts saw limited success, with persistent issues in refinery output and revenue leakages.

The 2021 Petroleum Industry Act (PIA) led to NNPCL:

The PIA led to NNPC’s transformation into a limited liability company—NNPCL—in 2021, aiming to instil commercial discipline and efficiency. While the legal restructuring was seen as a landmark reform, implementation challenges and leadership inertia persisted, and core issues around production capacity and refinery operations remained largely unresolved.

2025 Tinubu-Led NNPCL Restructuring (Current):

The 2025 shake-up stands out for its breadth and swiftness. Unlike previous efforts, it directly addresses refinery inefficiencies by removing top refinery executives and ties leadership appointments to measurable production goals. The appointment of Bayo Ojulari, a private-sector oil executive, signals a shift toward results-driven management with industry experience at the helm.

Key Differences:

• Accountability: The latest move is performance-based, tied to specific output benchmarks.

• Private-sector infusion: Leadership now includes figures from competitive energy sectors, such as Renaissance Africa Energy.

• Presidential backing: Tinubu’s administration appears more hands-on, having dismissed the previous board and CEO unilaterally.

In contrast to prior reforms that focused on structure or anti-corruption measures, the 2025 effort emphasises performance, transparency, and delivery, setting a more pragmatic tone for NNPCL’s future.