Under Mele Kyari’s leadership, Nigeria is on track of becoming a self-sufficient energy giant, reckons FEMI ADEWALE
The Nigerian National Petroleum Company Limited (NNPCL), under the leadership of Group Chief Executive Officer (GCEO) Mele Kyari, has embarked on several ambitious projects to reposition Nigeria’s energy sector. The recent comprehensive rehabilitation of pipelines and depots is just one among many initiatives aimed at improving petroleum distribution, enhancing energy security, and boosting economic growth, in alignment with President Bola Tinubu’s renewed hope agenda.
Since assuming office in 2019, Mele Kyari has spearheaded reforms that are reshaping the country’s oil and gas industry, ranging from infrastructure upgrades to strategic partnerships and financial restructuring.
Nigeria’s petroleum pipeline and depot system, crucial for crude oil and refined product distribution, has long suffered from vandalism, neglect, and inefficiencies. The NNPCL’s rehabilitation project aims to restore seamless fuel transportation, reduce reliance on tankers, and improve energy security.
Repairing and modernizing key pipelines to ensure a steady supply of crude oil to refineries and refined products to depots and depot modernization, enhancing storage facilities, automating distribution processes, and improving efficiency at major depots, are the major focus of this project.
By 2027, the project aims to transform Nigeria’s oil transportation system into one of Africa’s most efficient petroleum networks.
This is not the only landmark project under the leadership of Kyari. For decades, Nigeria has relied on imported refined petroleum products despite being Africa’s largest crude oil producer. One of Kyari’s boldest moves was initiating the $1.5 billion rehabilitation of the Port Harcourt Refinery to restore its refining capacity.
The rehabilitation, undertaken by Tecnimont S.p.A, an Italian engineering firm, with funding from NNPCL and African Export-Import Bank (Afreximbank), is being executed in three phases to ensure continuous production. The first phase, with an initial 60,000 barrels per day (bpd) refining capacity, was completed in December 2023.
Once fully operational, the refinery will reduce Nigeria’s dependence on imported fuel, saving billions in foreign exchange. Job creation, skill development, and technological advancements in Nigeria’s energy industry and stabilization of fuel prices by reducing import-related costs, are the major benefits for the revamping of the nation’s refinery capacity.
Another major landmark project is the most ambitious natural gas project in Nigeria’s history, the 614-kilometer AKK Gas Pipeline, which is a flagship infrastructure under Kyari’s administration. It forms part of the Trans-Nigeria Gas Pipeline (TNGP) designed to boost domestic gas utilization and enhance industrialization.
On completion, the project is expected to deliver up to 2.2 billion cubic feet per day (bcf/d) of natural gas to power plants and industries across Northern Nigeria.
Among others the project will ensure uninterrupted power supply to industries in Northern Nigeria. Lowering electricity costs by replacing expensive fuel-based power generation and reduction of carbon emissions, aligning with Nigeria’s energy transition goals. The AKK Gas Pipeline project, once completed, will be a major driver of Nigeria’s industrialization and economic diversification.
For decades, Nigeria’s offshore oil contracts favored international oil companies (IOCs), leading to significant revenue losses. In 2019, Mele Kyari spearheaded a landmark renegotiation of the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act, ensuring better revenue distribution for Nigeria.
This has increased Nigeria’s revenue share from offshore oil production from zero royalty to a sliding scale starting at 10%, and also secured an additional $500 million annually for the Nigerian government, ensuring long-term stability in offshore oil investments.
This renegotiation has significantly improved Nigeria’s earnings, providing critical funds for infrastructure development and energy projects.
Recognizing Nigeria’s vast natural gas reserves, Kyari introduced the Decade of Gas Initiative (2021–2030) to transition the country from a crude oil-dependent economy to a gas-powered nation.
Focusing on strategic areas of domestic gas utilization, the NNPCL under Kyari expanded gas pipelines for local industries and power generation and promotion compressed natural gas (CNG) and liquefied petroleum gas (LPG) as cleaner, cheaper alternatives to petrol and diesel. Over $20 billion in new investments in Nigeria’s gas sector. Expansion of the Nigeria LNG (NLNG) Train 7 project, increasing LNG exports, and growing widespread adoption of autogas-powered vehicles to reduce fuel costs and emissions, are parts of the landmark achievements.Under his leadership, Nigeria is on track to become a self-sufficient energy giant, with less dependence on fuel imports and greater global competitiveness.
Mele Kyari’s tenure as GCEO of NNPCL has been marked by groundbreaking projects that are revitalizing Nigeria’s oil and gas industry. From the pipeline and depot rehabilitation project to the Port Harcourt Refinery upgrade, the AKK Gas Pipeline, and the Decade of Gas Initiative, his reforms are laying the foundation for a more efficient, sustainable, and prosperous energy sector.
With strategic planning, innovative financing, and bold policy reforms, NNPCL is not just rehabilitating infrastructure, it is reshaping Nigeria’s future. As these projects near completion, Nigeria’s energy sector is set to witness unprecedented growth, ensuring greater prosperity for all Nigerians.
Adewale writes from Abuja
