The Cambridge English Dictionary defines a Reformer as someone who plans or supports changes to a system, law, and organization, among others, in order to make it more modern or effective.
This aptly describes the person of Engr. Mele Kolo Kyari, who bowed out of the Nigerian National Petroleum Company Ltd. as Group Chief Executive Officer after serving in that capacity for six years and a career spanning over 30 years at the NNPC.
Kyari came to office as the 19th Group Managing Director of Nigerian National Petroleum Corporation Limited (NNPCL) with the mindset to challenge the status quo, embrace innovation, a fearless attitude towards taking risks and a strong vision for change.
The challenges he met on the ground could provoke a meltdown for the fickle-minded, but almost six years down the line, he has significantly altered the oil behemoth, provoking in the process an enduring transformative agenda that may well unleash the country’s long-awaited energy revolution.
At his inception in office, the choices Mele Kyari faced could not be starker: either to continue on the unenviable trajectory to perdition or initiate a raft of reforms imbued with revolutionary aesthetics that would unleash systemic changes consequential enough to impact the fortunes of the company.
Even before he unpacked his vision, stakeholders within the industry were already setting the agenda for him. The global transparency group, the Extractive Industries Transparency (EITI), had urged Kyari to use his appointment to promote greater transparency and accountability in NNPCL management of Nigerian oil and gas revenues. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had pointed out the challenges the management under the leadership of Kyari should urgently address. The PENGASSAN wish-list included challenges associated with pipeline vandalism, crude oil theft, inadequate infrastructure, pricing uncertainties, obsolete refineries, the contentious fuel subsidy issues and the Petroleum Industry Bill (PIB).
Great expectations fueled by Kyari’s appointment at the helm of NNPC were borne of a solid reputation built over the years. An insider with a wealth of experience traversing many divisions of the company’s operations including occupying the position of Group General Manager, Crude Oil Marketing Division and Nigeria’s national representative to the Organization of the Petroleum Exporting Countries (OPEC), his outfield pedigree in Petroleum economics and crude oil and gas trading would prove pivotal to delivering a stellar performance long awaited by Nigerians.
As an internal change agent, Mele Kyari saw himself as a catalyst for the change management process, which would reposition NNPCL, the much-maligned symbol of Nigeria’s vast natural resource wealth, hobbled by systemic mismanagement, corruption and inefficiency. His Roadmap to Global Excellence, encapsulated the strategic focus of his management, is borne out of his conviction that, as the main enabler of the Nigerian economy, the NNPCL must entrench processes to ensure steady production growth and profitability across the oil and gas value chain.
In practical terms, his new management philosophy anchored on Transparency, Accountability and Performance (TAPE), envisions the transparency component of the agenda to maintain and enhance positive image and to share the values of integrity and transparency to all stakeholders whereas the accountability part of the vision would ensure compliance with business ethics, policies, regulations and accountability to all stakeholders.
Kyari envisioned the Performance Excellence leg of the agenda to entrench a high level of efficiency, hinged on the efficient implementation of business processes, which would also establish an appropriate reward system for exceptional performance among the workforce.
Fully appreciative of the critical role of technology in driving the enduring vision he had in mind, he activated a Business Continuity Plan (BCP), based on digital automation of the company’s processes. Under his guidance, NNPCL-IT Division automated the Key Performance Indicator Dashboard across the entire IT Enterprise and architecture.
This masterstroke led to the improvement of reporting efficiency and real-time performance tracking. The Microsoft Enterprise Additional Licenses for NNPCL Digital Transformation initiatives he activated led to an estimated cost-saving of over $1m to the company.
Reforms, profitability, and transparency have been the hallmark of Mele Kyari’s leadership. The challenge has, however, been how to unleash the desired change without getting fired. For sure, there has been pushback by entrenched forces within the system, but the fact that Kyari has unleashed what unarguably is the most transformative change in the company’s history and stands remarkable.
His averment that “Going forward, we will seek to continuously entrench transparency, accountability and performance excellence across all NNPCL operations and put all necessary structures in place to ensure compliance with these principles” was a statement of unwavering commitment and not a fluke. He believes that prudence, accountability and cost minimization were central to his efforts to maximize profit in a competitive market.
As evident, within his first year in the saddle, NNPCL was able to reduce losses from N803bn in 2018 to N1.7bn in 2019. In 2020, the company declared a net profit of N287bn, an epochal achievement since its inception in 1977.
This was no mean feat because the company was playing in a very challenging operating environment that tested the resilience of businesses and institutions. While companies all over the globe struggled with recessionary forces and weak economic outlook in the aftermath of the COVID-19 pandemic, in 2021, the company posted a profit of N674bn, an increase of N387bn or 134.8 per cent when compared to the N287bn recorded in 2020. As a result of the efficient management of the affairs of the company under the leadership of Kyari, the Audited Financial Statement revealed an increase of 2.6 per cent of total assets from N15.86tn in 2020 to N16.27tn in 2021; total liabilities also decreased by 8.3 per cent from N14.68tn to N13.46tn in 2021.
Given Kyari’s prudent and shrewd management trajectory, the shareholders’ fund position also followed an upward swing as it rose to N2.81tn in 2021 as against N1.15tn in 2020. This stellar performance represented a 144 per cent increase in shareholders’ funds as of December 31, 2021.
In 2022, the company’s profit grew to N2.548tn, followed by another upward swing of N3.297tn in 2023. Interestingly, as of August 2024, NNPCL’s total assets were N246.8tn, which is more than Nigeria’s nominal GDP. Building a world-class company requires not only a profound vision; it is one driven by an unwavering commitment and unyielding passion, unencumbered by traditional inhibitions and fright to smash the status quo.
As a change agent, Kyari, the unrepentant iconoclast, like all transformational leaders, is relentless by unremitting passion and enthusiasm, vision and purpose, intellectual curiosity and inspirational motivation. As the Group corporate leader, these intrinsic sterling qualities have driven him to the climax of human exertions, where failure is unthinkable.
His dedicated work ethic, undiluted patriotism and strong desire to launch the oil behemoth on the path of irreversible transformation and progress have driven him to break records. The enactment of the Petroleum Industry Act, a landmark piece of legislation that took over twenty years to come, had the imprimatur of Mele Kyari.
He successfully rallied diverse stakeholders to build the needed consensus, which paved the way for the passage of the bill into law. The law led to the establishment of new regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Regulatory Authority. These days, NNPCL continues to demonstrate readiness and determination to achieve carbon neutrality through the use of the country’s abundant natural gas resources as low low-carbon alternative that will help improve access to energy, all thanks to the commitment and vision of Mele Kyari.
His LPG Expansion Plan is encouraging the use of gas in families, power generation, auto gas and industrial applications. Kyari has successfully guided the diversification of NNPCL beyond its traditional oil assets. He has entrenched a governance structure that will ultimately transform NNPCL into a world-class company. In the coming years, with the support of the current administration and endorsement of Nigerians, this lofty vision will be achieved.
President Bola Tinubu gave credence to the exceptional performance of Kyari during his 60th birthday on January 8 when he hailed him as a “shining example” of his administration’s Renewed Hope agenda.
In a congratulatory message released by his Special Adviser on Information and Strategy, Bayo Onanuga, President Tinubu praised Kyari’s leadership in transforming NNPCL into a profitable organisation, citing notable achievements including the recent resuscitation of two refineries and increased oil production to 1.8 million barrels per day.
The commendation comes days after the restart of operations at the Warri Refinery, which Tinubu described as “a remarkable way to end the year” following earlier successes with the Port Harcourt Refinery.
The Warri facility, which is now operating at 60 per cent capacity, marks a milestone in the administration’s energy efficiency plans.
“Kyari is a shining example and embodiment of the ideals of the Renewed Hope Agenda. I commend his commitment to creating new opportunities and ensuring the growth and sustainability of Nigeria’s energy sector,” Onanuga quoted Tinubu as hailing the NNPCL GCEO.
President Tinubu had earlier directed the NNPCL to restore the country’s four refineries to good working condition to establish the country as a hub for crude oil refining in Africa.
Under Kyari’s leadership, NNPCL has recorded increased domestic natural gas consumption alongside other operational improvements.
Tinubu, in a recent tweet, urged the NNPCL GCEO to consolidate on his achievements by accelerating repair work on the Kaduna Refinery and the second refinery in Port Harcourt to further position Nigeria as a global energy provider.
Kyari has remained resilient, professional and focused in his bid to change the bad narratives of the oil and gas sector. He has painstakingly introduced several innovations into the oil company, which has since positioned the NNPCL on an upward trajectory.
With his TAPE Agenda (Transparency, Accountability and Performance Excellence), Kyari has turned around the oil company, making it competitive in the global market and thereby increasing the nation’s prosperity.
Beyond running the company on sound and globally recognized and acclaimed management principles, Kyari has repositioned the NNPC Ltd as one of the leading oil companies in the world.
In addition, he has used his position as helmsman of the company to aid in the tackling of key challenges confronting the Nigerian economy. One of these is the vexed question of crude oil theft, which has challenged successive governments in Nigeria since the country’s return to representative democracy in 1999.
It is on record that the NNPC under Kyari’s leadership designed the “Crude Theft Monitoring Application”, an application which has options for reporting incidents, with prompt follow-up and responses, and another for crude sales documents validation.
Before the launch of the application, Kyari had taken leading officials of the Nigerian government to the Niger Delta creeks to tackle the menace of oil theft. His effort paid off as a four-kilometre illegal oil connection line from the Forcados Terminal into the sea, where, for nine years, criminals had been siphoning Nigeria’s oil, was discovered.
More discoveries of crude oil theft and illegal pipeline connections have also been made by the NNPC Ltd, working collaboratively with security agencies.
Success achieved in this regard proved pivotal as Kyari’s efforts have also rekindled investor confidence in the sector. Under his visionary leadership, the NNPC Ltd has been able to reduce pipeline vandalization and crude oil thefts in the Niger Delta areas. As against the trend, today, Nigeria’s crude oil production has increased to approximately 1.8 million barrels per day (inclusive of condensate).
The 1.8 million barrels per day achievement was announced by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during a meeting held at the Oil Production War Room located at the NNPC Headquarters in Abuja.
The minister had said, “Today we are grateful that we have crossed a line of 1.8 million barrels per day, and also crossed 7.4 BCF of gas. This is our agenda. Today, the entire team is fully aligned and committed to delivering greater value, and we’re committed to delivering two million barrels by the end of the year.
“This is possible. This is achievable. I’m a very proud minister. We can do it again. Let me formally, on behalf of the Ministry of Petroleum Resources, on behalf of the federal government of Nigeria, congratulate the Chairman, board members, and the management of NNPC for navigating this process.”
Under the leadership of Kyari, the NNPC Ltd has been leading the charge with substantial investments in gas, significantly impacting the sector’s contribution to the GDP.
Recent statistics underscore the importance of these initiatives in the context of Nigeria’s economic landscape.
Nigeria’s oil sector recorded a GDP growth rate of 3.52%, reflecting a recovery from previous downturns.
This growth is attributed not only to crude oil production but increasingly to the expanding natural gas sector. According to the National Bureau of Statistics, the oil and gas sector’s contribution to GDP has seen a marked improvement, with gas output playing a vital role.
Recognizing the strategic importance of gas, NNPC Ltd is shifting its focus from solely oil production to include significant gas investments.
With Nigeria possessing over 200 trillion cubic feet of proven natural gas reserves, the growth potential is immense.
The NNPC Ltd is also spearheading the construction of key gas pipelines and processing facilities.
On May 19, 2024, the NNPCL and its partners delivered three critical gas infrastructures commissioned by President Tinubu.
The projects were, the AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d which is an expansion to the Kwale Gas Processing Plant (GPP – 1); the AHL Gas Plant, which is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO and the ANOH-OB3 CTMS Gas Pipeline Project.
The completion of the Ajaokuta–Kaduna–Kano (AKK) gas pipeline is set to enhance the transportation of gas across Nigeria, facilitating greater domestic supply and export capabilities.
Under Kyari’s leadership, the NNPC has invested heavily in domestic gas footprint expansion projects through the delivery of the trans-Nigerian gas pipeline projects, which include the escravos project, the Lagos pipeline system, and the Ajaokuta-Kano Gas Pipelines.
As a national oil company, the NNPC is cooperating with its partners to solve the energy challenges facing the country.
The footprints of Kyari in the oil and gas sector were also felt when he led the NNPCL to secure $7bn in fresh investments from India for Nigeria’s petrochemical industry.
In the area of gas infrastructure, Kyari is also leading the NNPC to implement the AKK Gas pipeline project
The AKK Gas pipeline is an integral part of the Trans-Nigeria Gas Pipeline (TNGP) with a capacity to transport about 2.2 billion cubic feet of gas per day.
The project, when completed, is expected to ease natural gas transportation from Ajaokuta in Kogi State to Kano through several states.
In demonstration of his support for the agenda of the President, Kyari had, shortly after the removal of fuel subsidy and in line with the directive of Tinubu to provide alternative fuel options, led the NNPCL to enter into a partnership with NIPCO Gas Limited to develop Compressed Natural Gas stations across the country.
The move is part of the NNPCL’s commitment to reducing its carbon footprint and providing a cheaper alternative fuel to motorists.
The current initiative is in addition to the phased deployment of 56 CNG stations planned by NNPC Retail across the country.
This landmark collaboration aims to expand the country’s CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars and Keke NAPEP.
This will significantly reduce the cost of transportation and engender sustainable national economic growth.
Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three Mother stations.
Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on the climate.
