The National Petroleum Company (NNPC) Limited’s group chief executive, Mele Kyari, as well as the company’s chairman, Pius Akinyelure – a close ally of Tinubu – were among those ousted.

Kyari was immediately replaced by Bayo Ojulari, a former managing director of Shell Nigeria Exploration and Production Company (SNEPCO), a subsidiary of the multinational oil giant.

“The board’s restructuring is crucial for enhancing operational efficiency, restoring investor confidence, boosting local content, driving economic growth and advancing gas commercialisation and diversification,” Tinubu’s media adviser, Bayo Onanuga, said in a statement.

The NNPC has long struggled with allegations of corruption, political interference and mismanagement of the west African nation’s fossil fuels.

The new leadership is tasked with reviewing strategic partnerships, increasing daily oil output to bridge a revenue shortfall, meeting growing local demand and curbing widespread oil theft.

Nigeria’s oil production slowed to less than a million barrels per day in 2023. However, amid a recent turnaround, the government is targeting two million barrels per day by 2027 and three million by 2030.

Amid the nation’s mix of state and private players, the NNPC is expected to contribute at least 10% to the country’s daily output by 2027.

A source in the presidency told AFP that Tinubu was concerned about the “crisis of confidence” in the oil industry, which is seen as a key cog in the country’s ongoing economic reforms.

But, another insider insisted that the dismissals were not an indictment of the previous board.

“There are certain positive reforms that the president wants to achieve in the industry,” the source told AFP, while also offering praise for Kyari’s role in reviving the company’s refineries.