By Dr. Tonye Clinton Jaja
In the write-up, I will do a brief summary of the crucial role and importance of the leadership of the national oil company of any country to take steps to translate the revenue it generates into positive impact upon the citizens of the said country.
The comparison is between two countries that are the highest crude oil producing countries in Africa and the middle East namely Nigeria and Saudi Arabia as at the year 2008.
“In 2008, Nigeria was indeed the largest crude oil producer in Africa, with an average daily production of 1.94 million barrels, according to the Institute of Developing Economies (IDE).”
“Yes, in 2008, Saudi Arabia was indeed the highest crude oil producer in the Gulf region, with a production capacity estimated at around 11 million barrels per day.”
However, in terms of the positive impact upon greater percentage of citizens of Nigeria and Saudi Arabia attributable to these high revenues from crude oil production, it is a tale of different strokes for different folks.
Let me illustrate this from a real life example of two PhD candidates from both countries who were at the University of London at the same time period.
In the year 2008, I witnessed first-hand the positive impact of crude oil revenues upon the lives of citizens of Saudi Arabia.
It was in April 2008 that I resumed as a PhD law student at the Institute of Advanced Legal Studies, University of London.
I was a beneficiary of a fully funded government scholarship. I had a letter from the government scholarship board which I submitted to the authorities of the University of London.
At the hostel of the University of London at Russell Square, London (which was in front of Paddington Train Station), I met a fellow PhD candidate who was also a PhD law student at Queen Mary, University of London.
He too was a beneficiary of the government of Saudi Arabia’s fully funded scholarship.
But that is as far as the comparisons went!!!
Dr. Faisal Al-Fadhel, the PhD student from Saudi Arabia completed his PhD study within the prescribed period of three years!!!
However, even though I had completed writing of my own PhD thesis even before the prescribed period, the University of London could not allow me to graduate because the government of Nigeria had not paid my tuition fees!!!
Even though Dr. Faisal Al-Fadhel and myself were schoolmates, he led a more comfortable life than myself in the United Kingdom, thanks to prompt and regular payment of his scholarship bursary funds!!!
To his credit he bought me a brand new SONY, laptop computer to use in writing my PhD thesis and for editing his own thesis.
Eventually, with funds from his government scholarship, He even had the funds to bring over his wife from Saudi Arabia and they moved out of the hostel to reside in the Russell Square area of London where rent is steep.
He graduated before myself and returned home to Saudi Arabia to take up a high paying job as a lawyer and Director in one of the government agencies in Saudi Arabia.
He was able to invite me in a fully funded visit to Saudi Arabia as a resource person for a training workshop on legal drafting for some government of Saudi Arabia lawyers!!!
The foregoing shows how the proper management by the national oil company of Saudi Arabia has ensured that its citizens are able to enjoy the proceeds of crude oil revenues!!!
During my PhD study, I used litigation arising from the Nigerian oil and gas industry as a case study of the negative consequences of poor legal drafting of Nigeria’s oil and gas legislation.
I was able to identify over 500 lawsuits involving the Nigerian national oil company (NNPC) and the legislation that established it (NNPC Act, 1977) which gulped over $500,000,000 from Nigeria’s economy from 1960 to 2008. However, the same cannot be said of the national oil company of Saudi Arabia and its relevant oil (Aramco) and gas legislation!!!
In conclusion, it is for the foregoing reasons that we salute President Bola Ahmed Tinubu (PBAT) for his recent changes in the appointment of the leadership of Nigeria’s national oil company.
These recent appointments are made with the understanding that the NNPC if well managed can deliver the much needed revenue for turn-around of Nigeria’s economy for the better. Which in turn would improve the quality of lives of its citizens.
Below is the news report of the said recent changes of the leadership of the NNPC by PBAT as follows:
“President Bola Tinubu has sacked the board of the Nigerian National Petroleum Company (NNPC) including its Group Chief Executive Officer, Mele Kyari and board chairman Pius Akinyelure.
The decision, effective April 2, 2025, was announced in a statement by presidential spokesperson Bayo Onanuga.
President Tinubu cited the need for enhanced operational efficiency, restored investor confidence, and a more commercially viable NNPC as the driving forces behind the decision.
Invoking his powers under Section 59(2) of the Petroleum Industry Act (PIA) 2021, he reconstituted the board with new leadership aimed at repositioning NNPC Limited for greater productivity and alignment with global best practices.
Kyari was first appointed NNPC chief by former President Muhammadu Buhari but was reappointed in 2023 by President Tinubu.
As part of the overhaul, Bayo Ojulari takes over from Kyari as the new group CEO, while Ahmadu Musa Kida has been appointed as NNPC’s new non-executive chairman, replacing Pius Akinyelure. Also, Adedapo Segun has been confirmed as the company’s chief financial officer (CFO).
In line with the PIA, the president also appointed six non-executive directors from each geopolitical zone.
They include Bello Rabiu representing the north-west, Yusuf Usman from the north-east, and Babs Omotowa, a former managing director of the Nigerian Liquefied Natural Gas (NLNG), for the north-central.
Others are Austin Avuru for the south-south, David Ige for the south-west, and Henry Obih for the south-east.
Meanwhile, Lydia Shehu Jafiya, the permanent secretary of the federal ministry of finance, and Aminu Said Ahmed of the ministry of petroleum resources will represent their respective ministries on the new board.
“This restructuring is aimed at repositioning NNPC Limited for greater productivity and efficiency in line with global best practices. We are taking bold steps to transform the company into a more commercially driven and transparent entity,” the statement reads.
The changes take effect immediately, and the new board has been handed a strategic action plan, which includes a “review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives”.
