Ex-Shell boss tasked with cleaning up Nigeria's oil sector

Bayo Ojulari has been appointed by Nigeria's president to take on a significant role in reforming the country's oil sector. This appointment comes at a time when Nigeria is facing numerous challenges, including allegations of corruption, pollution, and inefficiency within its oil industry. Bayo, who previously worked as an executive at Shell, a major oil company, will now lead the Nigerian National Petroleum Company (NNPC). The president's decision to restructure the NNPC is part of a broader effort to stimulate economic growth in Nigeria, which is Africa's largest oil producer. Over the past couple of years, Nigeria has experienced economic difficulties, with soaring food and fuel prices affecting the population. The NNPC has also been struggling financially, admitting to debts of approximately $6 billion. The presidency has expressed a desire to increase Nigeria's oil output and refining capabilities. Despite being rich in oil resources, Nigeria has to import fuel because it lacks sufficient refining capacity. The government used to subsidize fuel prices, but this practice was halted by President Tinubu shortly after he took office, leading to a dramatic increase in fuel costs. There are ongoing suspicions that the government may still be subsidizing fuel through the NNPC, despite official denials. In 2023, Nigeria's oil production fell below one million barrels per day, and the administration aims to ramp this up to two million barrels per day by 2027 and three million barrels per day by 2030. Bayo Ojulari replaces Mele Kyari, the former NNPC boss, and while some industry experts are optimistic about his appointment due to his extensive experience, they also recognize the significant challenges he will face. One energy expert pointed out that the NNPC is deeply in debt and lacks clarity regarding its financial situation, which has been marred by corruption and inefficiencies. Bayo began his career with Shell Nigeria in 1991 and eventually became the managing director, a position he held for six years before leaving in 2021 to work for an investment advisory firm. He later joined another energy company. In addition to boosting oil production, Bayo will need to work on improving the public perception of the NNPC. For many years, profits from the NNPC did not reach the government treasury, leading to a lack of transparency. It is only in the last five years that the NNPC has started to publish its financial accounts. The new board appointed by President Tinubu consists of seasoned professionals from the oil industry, and there is hope that they will operate free from political influence and restore integrity to Nigeria's oil sector.