5 Past NNPC GMDs Who Failed to Revive Nigeria's Refineries
News - July 30, 2024

5 Past NNPC GMDs Who Failed to Revive Nigeria’s Refineries

The Nigerian National Petroleum Corporation (NNPC) has long grappled with the challenge of reviving the nation’s refineries with no avail or tangible reasons for its failure. With the Dangote refinery expected to begin operation fully, these refineries are crucial for meeting domestic fuel demands and reducing dependency on imported refined petroleum products.

Despite the efforts of various administrations, the refineries in Nigeria have continued to operate far below capacity. Here are the past Group Managing Directors (GMDs) who, despite their other achievements, did not succeed in reviving these critical assets.

Ibe Kachikwu (2015-2016)

Ibe Kachikwu, who served as GMD before becoming the Minister of State for Petroleum Resources, also promised to revamp the refineries. His tenure saw the initiation of several policy frameworks intended to attract investment and improve efficiency through joint ventures. 

In August 2015, Muhammadu Buhari appointed him as the chief executive of the NNPC. On November 11, 2015, he was designated as the Minister of State, of Petroleum Resources by the president. Furthermore, on July 4, 2016, he was appointed chairman of the board of the NNPC.

However, his tenure as the GMD of the NNPC was concluded on July 4, 2016, when President Muhammadu Buhari replaced him with Dr. Maikanti K. Baru. His initiatives did not lead to substantial improvements in refinery performance, as the systemic issues from decades of neglect continued to hinder progress.

Andrew Yakubu (2012-2014)

Andrew Yakubu’s tenure as GMD also faced significant challenges in refinery revitalization. Although there were efforts to engage in comprehensive TAM, the refineries under his watch did not see the turnaround expected. 

Andrew Yakubu was removed from his position as the GMD of the NNPC by Goodluck Jonathan due to alleged conflicts with the Minister of Petroleum, Diezani Alison-Madueke, concerning appointments at the Nigerian Petroleum Development Company Limited (NPDC). 

The presidency stated that the dismissal of the NNPC management team was part of efforts to bolster ongoing reforms within the organization.

On February 3, 2017, the EFCC discovered substantial sums of money—USD 9.8 million and GBP 72,000—in Yakubu’s residence in Kaduna, Nigeria. Yakubu acknowledged the funds were his, claiming they were gifts, when he appeared at the EFCC’s zonal office in Kano. 

Following this, the EFCC charged him with a false declaration of assets. While he has not been legally found guilty of corruption, Yakubu initiated a lawsuit against the EFCC and the Attorney General of the Federation in March 2017, seeking damages of one billion Naira.

Augustine O. Oniwon (2010-2012)

Augustine Oniwon’s period in office was marked by persistent struggles with the decrepit state of Nigeria’s refineries. Despite various turnaround maintenance (TAM) initiatives, there was little to show in terms of enhancing production capacities. 

The refineries continued to decline, plagued by outdated technology and lack of proper maintenance, which hampered any significant revival efforts during his tenure.

Late Dr. Maikanti Baru (2016-2019)

Dr. Maikanti Baru’s tenure saw several ambitious plans for the refineries, including collaborations and negotiations with international firms for rehabilitation projects. 

However, these plans largely did not materialize into substantial operational improvements. By the end of his tenure, the refineries were still grappling with operational inefficiency and massive losses, highlighted by frequent breakdowns and low capacity utilization.

He previously held the position of General Manager of Liquefied Natural Gas. Baru was appointed as the 18th GMD of NNPC in July 2016. He retired upon reaching the statutory retirement age of 60 on July 7, 2019, and was succeeded by Mele Kyari. Baru passed away on Friday, May 29, 2020, due to complications from COVID-19.

Mele Kyari (2019-Present)

Mele Kyari took over as the GMD of NNPC with a promise to ensure transparency and revive Nigeria’s ailing refineries. Under his tenure, there were significant strides toward rehabilitating the Port Harcourt Refinery with approved funding aimed at full restoration. 

However, as of now, the comprehensive revival of all the refineries to full operational status remains unfulfilled. Challenges such as funding constraints, bureaucratic hurdles, and technical issues continue to stall progress.

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