Can Nigeria's Oil Sector Be Saved? Meet the New Chief with a Mission!

In a significant move aimed at reforming Nigeria’s troubled oil sector, President Bola Tinubu has appointed Bayo Ojulari, a former Shell executive, as the new head of the Nigerian National Petroleum Company (NNPC). This restructuring is part of a larger strategy to address ongoing issues of corruption, pollution, and inefficiency that have plagued the nation’s oil industry for decades. The presidency highlighted that the overhaul of the NNPC, which included a complete board replacement, is critical for boosting economic growth in the country, particularly as Nigeria seeks to increase its oil production from less than one million barrels per day to two million by 2027 and three million by 2030.

Nigeria, recognized as Africa’s largest oil exporter, has faced immense challenges, particularly with soaring fuel prices and a staggering debt of around $6 billion admitted by the NNPC last September. Traditionally, Nigeria has depended on imported fuel due to insufficient refining capacity despite its vast oil reserves. The subsidy on fuel that the government previously managed was lifted by President Tinubu when he took office nearly two years ago, which has led to increased fuel prices—with allegations suggesting that the government may still be subsidizing the cost indirectly through the NNPC.

Ojulari, who began his career with Shell Nigeria in 1991 and ultimately served as managing director, faces monumental challenges as he steps into this leadership role, particularly in tackling the debt and corruption that have characterized the NNPC’s finances. Despite the optimism about his extensive experience, industry experts are wary of the complications stemming from government interference and the company’s bloated structure. The renewed board, filled with seasoned professionals committed to transparency, symbolizes a hopeful attempt to shed light on the opaque dealings of the past years, with the hope that accountability will lead to more profits reaching the national treasury.

As Mr. Ojulari embarks on this critical mission, the stakes are high—not just for the NNPC but for the entire nation, where millions of Nigerians await the positive transformation of their country’s oil wealth.