Kyari’s NNPC tenure sparks legal debate

…As Ojulari, Kida emerge possible successors

With Mele Kyari set to turn 60 on January 8, 2025, questions are being asked as to whether the current CEO of the Nigerian National Petroleum Company (NNPC) will step down as mandated by public service rules or leverage a loophole in the Petroleum Industry Act (PIA) to retain his position at the helm of Africa’s largest oil company.

Appointed by the then President Muhammadu Buhari in July 2019, Kyari’s position was secured with a five-year mandate.

His tenure as CEO has been the longest in the company’s history since the country’s return to democracy in 1999.

Only two former top executives, Funsho Kupolokun (2003- 2007) and Augustine Oniwon ( 2010-2012), have held the position for extended periods.

Public Service Rule vs. Corporate Status

However, Kyari’s tenure has sparked debates due to a combination of factors, including the recent restructuring of the NNPC and a potential leadership vacuum.

The oil company was restructured in 2021 into a limited liability company under the PIA, aligning NNPC with the Companies and Allied Matters Act (CAMA), which imposes no age or tenure limits on its management.

This restructuring gave Kyari, appointed in 2019, an argument for a fresh five-year term starting from 2021, stretching until 2027, in compliance with Section 59 (2) of the Petroleum Industry Act 2021 which states that, “The composition of the Board of the NNPC Limited shall be determined in accordance with the Companies and Allied Matters Act and its Articles of Association.”

Adewale Adebayo, a Lagos-based energy lawyer, said: “The PIA was designed to introduce greater autonomy for the NNPC. By continuing to allow political appointees to hold executive positions, it undermines the very essence of the reforms the Act was meant to implement.”

Emeka Nwosu, an energy consultant, suggested that there are valid concerns about accountability within the corporation. “While Kyari has overseen some successful projects, there are still unanswered questions about the transparency of NNPC’s dealings, particularly with the security of pipelines in the Niger Delta.”

Kyari’s potential successor is already a subject of fierce discussion, with prominent figures positioning themselves for the role.

Read also: Auditor-general’s report implicates NNPC in N514bn fund diversion

Emergence of Ojulari

Multiple sources suggest that Tinubu may be considering Bayo Ojulari, a former managing director of Shell Nigeria Exploration and Production Company (SNEPCO), as Kyari’s successor.

Ojulari, who played a key role in the $2.3 billion purchase of Shell’s onshore assets in Nigeria, is regarded as a leading figure in the oil and gas industry with over 33 years of experience.

The Emergence of Musa Kida as Alternative

In response to the growing clamour from the North, a new contender has emerged: Ahmadu Musa Kida, a former executive of TotalEnergies and a highly respected figure in the oil industry.

Kida, who hails from Borno State in North-East Nigeria, has spent 35 years in the energy sector and holds a postgraduate diploma in petroleum engineering. Kida’s supporters argue that his appointment could offer a compromise solution, appeasing northern stakeholders while also positioning NNPC for continued growth.

Kida’s candidacy has reportedly gained traction, especially following his backing by influential figures such as Gilbert Chagoury, a close associate of President Tinubu. The backing of such influential personalities and Kida’s strong ties to the international oil community may make him a formidable candidate for the role.

Critics’ Argument

However, the possible appointment of Ojulari has sparked controversy, particularly among some northern factions.

Critics argue that the president’s decision to favour Ojulari could deepen concerns over the perceived lopsided distribution of key government appointments, which have increasingly favoured a certain ethnic group.

Recently, Farooq Kperogi, a United States-based Nigerian professor of journalism, called out Tinubu’s relentless Yoruba-centric take-over of the NNPC.

Kperogi, in an article titled, ‘Tinubu’s Buharisation of the NNPC,’ accused President Tinubu of appointing Yoruba people to key positions at the NNPC.

Also, Nasir El-Rufai, the immediate past Governor of Kaduna State, in a post on X, said two wrongs do not make a right, a statement that is believed to be referring to Buhari’s bias for northerners in his appointments.

The former Kaduna governor, however, advocated for sensible inclusion over what he described as ‘arrogant exclusion.’

The post read, “DECEMBER MESSAGE: Two wrongs do not make a right. Sensible inclusion always trumps arrogant exclusion!!.”

In response to Kperogi’s article, Olufemi Soneye, chief corporate communications officer of the NNPC, addressed what he described as ‘misconceptions’ about the company’s operational and leadership structures.

“The NNPC prides itself on being a professional organisation with a diverse leadership lineup that includes individuals from various parts of the world, not just Nigeria. The presence of qualified foreigners in the employ of the NNPC, who have been bolstering the value chain of production and distribution of allied products, is verifiable,” he said.

The spokesperson accused Kperogi of promoting divisive narratives and misrepresenting the NNPC’s achievements and work ethics to malign President Tinubu.

“This editorial preoccupation of Kperogi is nothing but a sheer red herring, ostensibly orchestrated to detract from the President’s disciplined leadership that upholds the freedom of the NNPC as well as the company’s work ethic,” Soneye argued.

However, a follow-up question to confirm the expiration date of the tenure of the GCEO received no reply from the NNPCL’s spokesperson as at press time.