Nigeria's energy reforms continue as president restructures NNPCL Board

Nigeria's President Bola Tinubu has made a significant move by appointing Bayo Ojulari as the Group CEO of the Nigerian National Petroleum Company Limited and Ahmadu Musa Kida as non-executive chairman, marking a major restructuring of the oil company. The decision has led to the removal of Pius Akinyelure and the Group Chief Executive Officer, Mele Kyari. George Etomi, Founder of George Etomi and Partners, spoke to CNBC Africa about the leadership shake-up and its implications for the energy sector in Nigeria. According to Etomi, the changes in the leadership of NNPC signify a positive shift towards commercial viability and transparency. He emphasized that the appointment of industrial experts to key positions within the company, such as the chairman and managing director, is a welcomed development. This move aligns with the objectives of the Petroleum Industries Act, aiming to transform NNPC into a more efficient and transparent entity. Etomi highlighted the importance of strengthening the governance structure of NNPC to build public trust, especially as the company considers plans for an IPO. Comparing NNPC to successful international oil companies like Saudi Aramco, Equinor, Petronas, and Qatar Energy, Etomi stressed the need for the Nigerian company to demonstrate efficiency and transparency in order to attract public confidence and drive economic growth. He pointed out that past political interference has hindered NNPC's potential and called for a hands-off approach from the government to allow competent professionals to lead the company effectively. The discussion also touched on the impact of these reforms on the power sector in Nigeria. Etomi, who has been involved in policy advisory committees for both the power and oil industries, emphasized the crucial role of gas in powering thermal plants, which account for 80% of the country's energy needs. He underscored the importance of leveraging Nigeria's gas assets to improve power generation, which is essential for the overall development of the energy sector. In conclusion, the leadership changes at NNPC represent a significant step towards transparency and efficiency in the Nigerian energy industry. By appointing experienced professionals and focusing on governance reforms, the government aims to lay the foundation for sustainable growth and development in the sector. The success of these reforms will not only benefit NNPC but also have positive ripple effects on the broader economy, particularly in terms of power generation.