A Hero In Making: Mele Kyari And The Transformation Of NNPCL

The Nigerian National Petroleum Corporation (NNPC) now Nigerian National Petroleum Corporation (NNPCL) has long been both a symbol of Nigeria’s vast natural resource wealth and a casualty of systemic mismanagement, corruption, and inefficiency. As Africa’s largest oil producer, Nigeria’s petroleum sector has the potential to power the nation’s economy and transform the lives of its citizens. Yet, for decades, the NNPC, once a symbol of national pride, has instead become a cash cow for corrupt political operatives, a source of mismanagement, and a victim of political interference.

Since its establishment in 1977, by the Federal Military Government, as a Cash cow, for the government. NNPC’s mission was simple: to manage and harness Nigeria’s oil and gas resources for national development. However, the corporation’s story is intertwined with the country’s political instability, economic challenges, and persistent corruption. Successive administrations, rather than fostering the growth of a strong, autonomous energy entity, have allowed NNPC to become a tool for political patronage, riddled with inefficiency, opacity, and waste.

For years, the NNPC’s financial reports were opaque, and its operations often led to inefficiencies, mismanagement of oil revenues, and rampant corruption. Despite its significant contribution to the national treasury, the company faced recurring allegations of financial mismanagement, embezzlement, and lack of accountability. The opaque nature of NNPC’s operations led to a crisis of trust with the Nigerian public and international stakeholders.

It was in this context of deep institutional challenges that Mele Kyari took over as the Group Managing Director of the NNPC in 2019, a time when the oil sector was suffering from dwindling revenues, underperformance, and a loss of credibility. Kyari’s appointment came at a crucial moment, as the nation was struggling to reform its ailing oil industry amidst fluctuating global oil prices, rising debt, and calls for diversification away from fossil fuels.

Mele Kyari, an oil industry veteran with decades of experience, brought a fresh perspective to an organization long plagued by inertia and inefficiency. As the first Group Chief Executive Officer of NNPCL following its transition to a limited liability company in 2022, Kyari’s leadership has been nothing short of transformative.

Under his stewardship, the NNPCL has undergone significant reforms aimed at modernizing its operations, improving transparency, and restoring its role as a key driver of national development. One of the first steps Kyari took was to emphasize the need for greater corporate governance, transparency, and accountability. By pushing for reforms that were previously unimaginable in the corporation’s bureaucratic culture, he sought to bring the NNPCL into the 21st century.

Kyari’s efforts began with rebranding the NNPC into NNPCL, which was not just a change of name but a declaration of intent. The restructured company now operates with greater focus on performance, sustainability, and efficiency, moving away from the inefficient, political tool it had once been. Kyari pushed for greater accountability in revenue generation, insisting on strict audits and transparent operations. The result? A much clearer picture of the company’s financial standing and a noticeable reduction in corruption and inefficiency.

Furthermore, Kyari has led efforts to make the NNPCL more commercially viable and competitive in the global oil and gas market. Under his watch, the company has embraced strategic partnerships and collaborations aimed at boosting Nigeria’s crude oil production and refining capacity. His leadership, has prioritized energy security and diversification, ensuring that NNPCL not only remains a key player in the global oil market but also contributes to the growth of Nigeria’s energy sector beyond oil, including natural gas and renewable energy projects.

Kyari’s reform efforts have been particularly significant in overcoming the longstanding challenges facing the Nigerian petroleum sector. One of the most prominent of these is the issue of petroleum subsidy payments. Historically, Nigeria has spent billions on fuel subsidies that drain the national coffers, often to the benefit of a few, without improving the sector’s efficiency or benefiting ordinary Nigerians. Under Kyari’s leadership, there has been a more transparent approach to addressing fuel pricing, with the government making significant strides toward deregulating the downstream sector.

Kyari’s reforms also extend to NNPCL’s relationship with the Nigerian public. In a country where oil revenues often fail to translate into visible benefits for citizens, Kyari has worked to foster a sense of hope and national pride in the petroleum sector once again. His emphasis on local content development and creating employment opportunities in the sector has given many Nigerians renewed optimism about the role the oil industry can play in job creation and economic growth.

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While the challenges of the Nigerian petroleum sector remain daunting ranging from pipeline vandalism and oil theft to fluctuating global oil prices and environmental concerns Kyari has instilled a sense of purpose and commitment to transparency that is gradually turning things around.

Kyari’s vision for NNPCL goes beyond short-term fixes. His focus on long-term growth, strategic investments, and a commitment to Nigeria’s energy security places NNPCL on a path toward modernization and sustainability. Through investments in refining capacity, Kyari has led the NNPCL toward reducing Nigeria’s reliance on imported refined petroleum products, a major drain on foreign exchange. His push to tackle domestic energy needs with greater urgency, culminated into the recent resumption of production by the Port Harcourt refinery, a move that is being widely celebrated, by Nigerians, who have lived with decades of promises, by successive administration, to revamp the moribund refineries in the country, unsuccessfully, while exploring cleaner energy alternatives, shows his forward-thinking approach.

While much remains to be done, the changes introduced under Kyari’s leadership have been transformative. Nigeria’s oil and gas sector is beginning to regain its footing after decades of mismanagement, and Kyari’s efforts have put the NNPCL on a more stable, sustainable trajectory.

Mele Kyari has emerged as a symbol of hope in the energy sector, for Nigerians, demonstrating that with the right leadership, even the most entrenched problems can be overcome. He stands at the helm of a corporation that, under his leadership, is evolving into an institution that serves not only as a financial pillar for the Nigerian economy but also as a key player in global energy markets. In a nation where oil has often been both a blessing and a curse, Kyari has proven that the industry, when properly managed, can indeed be a force for positive change. Similarly under Kyari’s leadership, the NNPC is building gas infrastructure such as the OB-3 Gas Pipeline, AKK Gas Pipeline to deepen the use of gas in the domestic market, while also promoting the West Africa Gas Pipeline and the Nigeria-Morocco Gas Pipeline, as well as the Train 7 of the NLNG and number of Floating LNG Projects to deliver gas to the global market. The company also boasts of stakes in a number of Independent Power Plants such as Afam VI, Okpai Phases 1 and 2 with a combined installed capacity of 1,420MW, there have been plans to build three new power plants in the AKK Pipeline corridor Abuja, Kaduna, and Kano. The ground-breaking ceremony of the 1,350MW wholly owned Gwagwalada Power Plant was performed by President Bola Ahmed Tinubu in August last year.

Also under Kyari, Nigerian National Petroleum Company Limited (NNPCL) achieved a record-breaking net profit of ?3.297 trillion for the financial year ending December 2023. This marks a significant increase of ?749 billion, or 28%, from the ?2.548 trillion profit reported for 2022. The company has also declared a substantial final dividend of ?2.1 trillion, underscoring its robust financial health and commitment to shareholder returns.

Under the visionary leadership of Mallam Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd), the company has achieved remarkable milestones, transforming Nigeria’s oil and gas industry. Among these achievements is the recent attainment of 1.8 million barrels per day (mbpd) in crude oil production and 7.4 billion standard cubic feet (bscf) per day in gas production.

As NNPCL continues its journey under Mele Kyari’s leadership, Nigerians can only hope that this new chapter in the country’s oil and gas history will lead to sustainable growth, equitable development, and a brighter future for generations to come. The legacy of Kyari’s tenure, though still unfolding, offers a vision of what is possible when commitment, integrity, and innovation drive the leadership of one of Africa’s most vital industries.

In many ways, Mele Kyari is not just managing an oil company; he is reshaping the future of an entire nation.

Better days are ahead.

Femi Salako is the Publisher of Triangle International Magazine, he writes from Lagos