Mele Kyari

In 2019, President Muhammadu Buhari appointed Mele Kyari as the Group Managing Director (GMD) of Nigeria’s national oil company, the Nigerian National Petroleum Corporation (NNPC), which has since been rebranded as NNPC Limited (NNPCL). While Kyari’s academic qualifications and career history appeared to justify his appointment, his prior involvement in the corporation’s operations implicated him in its longstanding systemic issues. Since joining NNPC in 1991, Kyari held several senior roles, including in exploration, production sharing contracts, and crude oil stock management. He also led the Open Government Initiative, aimed at monitoring traders involved in Nigeria’s crude oil business.

Kyari’s tenure as GMD has been marred by numerous scandals, missed opportunities for reform, and a continued decline in NNPC/NNPCL’s performance. By August 2022, Nigeria’s crude oil production had dropped below one million barrels per day—a record low, even compared to the years of militant activity in the Niger Delta. Widespread oil theft, deteriorating infrastructure, and chronic underinvestment prevented Nigeria from capitalizing on soaring oil prices driven by Russia’s invasion of Ukraine.

The year 2024 proved especially damaging to NNPCL’s reputation. After initially denying any debt, the company admitted to owing $6.8 billion to international traders. Additionally, it was revealed that NNPCL had not completed payment for the 20% stake it claimed to have acquired in Dangote Refinery, effectively reducing its actual holding to 7.2%. In November, skepticism greeted NNPCL’s announcement that its Port Harcourt refinery had resumed operations, further fueling public distrust.

Despite owning four refineries, none of which were operational, NNPCL entered into an exclusive agreement to purchase petrol from Dangote Refinery—a potential competitor. This contentious deal eventually collapsed, forcing NNPCL to resume petrol imports.

Kyari’s continued role under President Bola Tinubu, despite NNPCL’s poor performance, highlights the government’s tolerance for unprofessional management. While some civil society organizations have called for his dismissal, others argue that the corporation’s issues are rooted in political interference.

Spread the love