President Tinubu’s dismissal of NNPC CEO Mele Kyari has sent ripples through Nigeria’s oil sector, creating opportunities for some… and challenges for others. We examine the key players who stand to gain or lose from this major shake-up.
With oil still accounting for around 90% of Nigeria’s foreign exchange earnings and two-thirds of government revenue, the Nigerian National Petroleum Company (NNPC) remains one of the country’s most critical state-owned entities. Its head, Mele Kyari, is invariably among Nigeria’s most influential figures, attracting intense lobbying from governors, traditional rulers and foreign investors seeking lucrative contracts.
After five years as CEO of the NNPC, Kyari, along with the entire board, was dismissed by President Bola Tinubu. Former Shell executive Bayo Ojulari will take over as CEO, while Musa Kida has been appointed chairman.
Kyari’s tenure reshaped power dynamics within the NNPC, leading to the retirement of some top executives and the loss of lucrative contracts for others. For those sidelined under his leadership, Kyari’s departure presents an opportunity to reenter Nigeria’s competitive oil sector.
Meanwhile, industry players like Oando’s CEO and the president’s nephew Wale Tinubu are expected to continue business as usual. Those who thrived under Kyari’s leadership may now need to adapt to maintain their standing.
So, who are the winners and losers of Kyari’s exit?
Winners
Aliko Dangote gets a friendlier face at NNPC
The Nigerian National Petroleum Company Limited (NNPCL) and Dangote have been locked in a crude supply dispute for nearly two years – Kyari’s exit as CEO presents an opportunity for renegotiation.
Dangote has accused NNPC of failing to meet agreed crude supply commitments, forcing his refinery to import around 12 million barrels per month to sustain his operations. The NNPC continues to defend its decision to award fuel import contracts, arguing that halting imports would create a monopoly. Dangote says this contravenes the Petroleum Industry Act, which forced him to sue the national oil company.
Meanwhile, a six-month directive from Tinubu for NNPC to sell crude to Dangote in naira was partially implemented but later abandoned, leading Dangote to suspend petrol sales in Nigeria and contributing to rising fuel costs.
An associate of Dangote told The Africa Report that there were celebrations among Dangote employees upon the news of Kyari’s sacking.
Elusanmi Eludoyin of Paragon was listened to
Eludoyin is the CEO of Paragon Holdings with investments in almost every sector of the economy. He is also an associate of Tinubu, who has been his friend for several decades. Insiders tell The Africa Report that Eludoyin played a major role in convincing Tinubu to appoint Ojulari as NNPC CEO.
With Ojulari at the helm, Eludoyin, who has maintained a relatively low profile in the oil and gas sector, is poised to make significant strides. His involvement is expected to bring new momentum to the industry, leveraging his diverse business experience to drive growth and innovation.
Eludoyin’s Paragon Petroleum invested in Nigeria’s downstream, midstream and upstream sectors beginning in the early 1990s. He was allocated Oil Prospecting Licence (OPL) 235 and 240 in March 1995 as well as OPL 314 in 1999.
Through Tinubu’s influence, he entered into a joint venture with the Lagos State government to build a 50,000 bpd refinery and was allocated 1,000 hectares to do so.
Gilbert Chagoury’s French connections
Lebanese-Nigerian billionaire Chagoury, among select Nigerians awarded an oil prospecting licence shortly before Nigeria returned to democratic rule in 1999, is another winner in this new arrangement, given his close associate Kida has been named chairman of the NNPC board.
Kida, who spent nearly 40 years working at TotalEnergies, has strong French connections – having schooled in Paris. His appointment would help deepen ties with France, which is seeking to increase investments in Nigeria. Chagoury, who is a longtime associate of Tinubu, is part of the France-Nigeria Business Council and is currently handling over $15bn in contracts for the Nigerian government.
Insiders tell The Africa Report that Chagoury would have preferred Kida as NNPC CEO, the more powerful portfolio. However, Kida being chairman of the board is a big win.
Yusuf Usman back in the game
Usman was until August 2021 the chief operating officer for gas and power at NNPC but was suddenly sacked by Kyari as part of a shake-up. Those close to Usman tell The Africa Report that he was unhappy about his removal especially because he still had years of service left.
Usman has been vindicated as he was appointed to the NNPC board by Tinubu after Kyari was sacked.
Bello Rabiu, overlooked, now back
In 2019, Rabiu was one of the senior NNPC executives shortlisted by former president Muhammadu Buhari to succeed Maikanti Baru as CEO of NNPC. However, Buhari eventually settled for Kyari.
Rabiu had held several top positions at the national oil firm and rose to become chief operating officer/group executive director of Upstream. He was, however, forced to retire immediately after Kyari was appointed.
An official at the NNPC tells The Africa Report that Rabiu was pushed to retire prematurely due to office politics. He has also been appointed to the NNPC board.
Tony Attah and Renaissance to secure cash calls?
The Renaissance Consortium, led by Attah and which recently bought the remainder of Shell Nigeria’s onshore assets for over $2bn, is expected to be a beneficiary of Ojulari’s new appointment.
Ojulari is one of the promoters of the Renaissance consortium which is aiming to boost Nigeria’s crude production. The NNPC executes oil deals through joint ventures with oil companies and often owns about 60% equity. However, there have been complaints for many years about the NNPC being unable to meet its cash call obligations.
Renaissance will expect to benefit immensely now that its ally is in charge of the national oil firm.
Abdulrahman Abdulrazaq brings Kwara into play
Abdulrazaq is the governor of Kwara State, where Ojulari comes from. Due to the nature of Nigerian politics, states which produce influential government appointees often enjoy certain benefits. It is for this reason that the Kwara State government issued a statement congratulating Ojulari after his appointment was announced.
Abdulrazaq is also the chairman of the Nigerian Governors Forum, which makes him one of the most influential governors in Nigeria.
To top it all, he is also into the oil and gas business. In 1981, he established NOPA Oil, which prides itself as the first Nigerian company to trade in crude oil and petroleum products to the global markets and also to import petroleum products into Nigeria.
In the 1990s, he set up First Fuels Petroleum and Petrochemical – a contractor with the NNPC. His younger brother, Isiaka Abdulrazaq, was the chief financial officer at NNPC during Buhari’s administration. The governor is expected to benefit immensely from the new appointment.
Roland Ewubare puts Kyari clash behind him
Back in 2020, Ewubare held the powerful portfolio of chief operating officer at NNPC, second only to Kyari. However, he suddenly resigned and moved to the United States reportedly after a disagreement with Kyari. Now, he has been reinstated by President Tinubu, making him another beneficiary of Kyari’s exit.
Losers
Pius Akinyelure regretfully dropped
Akinyelure is the past chairman of NNPC and is also a mentor to Tinubu, having served as his boss in Mobil in the 1980s. He was therefore deemed untouchable.
An aide to the president tells The Africa Report that Tinubu would have preferred to keep the 82-year-old on as chairman of the NNPC board but couldn’t for political reasons.
“Akinyelure is Yoruba. Ojulari is also Yoruba, even though he is a northerner. Having two people of the same ethnic stock as chairman and MD would have been unwise politically,” he said, adding that the president could compensate his former boss with a different appointment.
Abdulkabir Adisa Aliu now faces Dangote competition
Aliu is the CEO of Matrix Energy, an oil marketing and trading firm and one of the biggest importers of refined products into the country. He is also a protégé of Kyari, under whom he received major contracts.
Matrix Energy got one of the biggest contracts to bring in refined crude cargoes monthly into Nigeria. This put Aliu on a collision course with Dangote, who argues that imports ought to stop because his refinery is capable of meeting Nigeria’s needs. Dangote thus sued Matrix alongside NNPC, which has also sued Dangote before a federal court.
There were reports that Aliu’s firm had brought in fuel that didn’t meet the required quality standards, imported into Nigeria and sold cheaply, which made it difficult for Dangote to compete. Aliu denied bringing inferior products into the country.
“Aliu and Kyari were always together. They worked together, travelled together and recently they would eat together after breaking fast during Ramadan. Kyari’s exit will be a big blow for him,” an official said.
Adebanjo Olumuyiwa Omisore’s Bono Energy back to drawing board
Omisore (not pictured) is director at Bono Energy, one of the firms given crude contracts. So favoured was his company that Kyari’s enemies began spreading rumours that he was the real owner of the oil firm even though the company’s documents state otherwise.
Bono Energy will have to re-strategise with Kyari gone.
Nzan Ogbe of Levene to struggle?
Ogbe is the CEO of Levene Energy Holdings and sources say he is also close to Kyari. Levene Energy has been receiving contracts to lift crude oil since 2016, around the time when Kyari was the group general manager of the Crude Oil Marketing Division at the NNPC.
At the time, Kyari was in charge of direct sale direct purchase contracts, an agreement that allows sales of crude oil to refiners, who, in turn, supply the corporation with an equivalent worth of petroleum products.
Yakubu Maishanu’s AYM Shafa did well under Kyari
Maishanu is the founder of AYM Shafa, a downstream company with over 150 filling stations across the country and one of the major beneficiaries of Kyari’s contracts. It is also one of the companies being sued by Dangote for importing fuel into the country.
The contracts to import cargoes into the country are now at risk with Kyari’s exit.
Auwalu Abdullahi Rano’s direct purchase days behind him?
Rano is the founder of AA Rano Nigeria Limited, a downstream oil firm with gas stations across northern Nigeria. Rano is known to be close to Kyari and has benefited immensely from the NNPC. His company was a major beneficiary of the direct sale/direct purchase arrangement put in place by Kyari which involved the sale of crude in exchange for petrol.
AA Rano was among the four firms awarded the contract for the maintenance of pipelines, through the build, operate and transfer financing model but competitors complained that AA Rano is not a midstream firm but is dedicated mainly to downstream and was thus not competent to carry out such a project.
The company is also among those being sued by Dangote. Kyari’s exit is a blow for the company.
(The Africa Report)
