Pythagoras postulated that the universe is numbers. And across human history, we have been trying to understand the numbers which make up the universe. When you understand the numbers, you understand the “universe” in what you do.

Join Tekedia Capital on Saturday for another edition of Tekedia Capital OPEN on a topic titled “The Abundance of Nations”. How do you unlock the abundance? You need to understand numbers because the wealth and abundance of nations are in the numbers. The impossibility is only possible because we do not understand the numbers on that thing that is impossible!

Event: Tekedia Capital Open

Topic: The Abundance in Nations and Preview of Next Tekedia Capital Investment Cycle’s 17 Startups

Speaker: Ndubuisi Ekekwe, PhD

Date: Saturday, April 5, 2025

Time: 4-5pm WAT

Zoom link: here https://www.tekedia.com/the-abundance-of-nations-and-preview-of-next-investment-cycles-17-startups/

The OPEN is free for the public; you’re invited.

In a decisive move, President Bola Ahmed Tinubu has approved a sweeping reconstitution of the Nigerian National Petroleum Company (NNPC) Limited board, effective immediately, replacing Chairman Chief Pius Akinyelure, Group Chief Executive Officer Mallam Mele Kolo Kyari, and all other board members appointed in November 2023.

The announcement, made by Bayo Onanuga, Special Adviser to the President on Information and Strategy, marks a significant shift for Nigeria’s state-owned oil giant, which has faced persistent accusations of malfeasance, underperformance, and financial inefficiency.

The overhaul introduces Engineer Bashir Bayo Ojulari as Group CEO and Ahmadu Musa Kida as non-executive chairman, alongside a new 11-member board tasked with reversing decades of criticism and meeting ambitious sectoral goals.

The reconstituted board includes Adedapo Segun, who assumed the role of Chief Financial Officer in November 2024, replacing Umaru Isa Ajiya. Representing Nigeria’s six geopolitical zones, non-executive directors include Bello Rabiu (North West), Yusuf Usman (North East), and Babs Omotowa, a former Managing Director of the Nigerian Liquefied Natural Gas (NLNG), for North Central. From the southern zones, Austin Avuru (South-South), David Ige (South West), and Henry Obih (South East) join the board. Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, and Aminu Said Ahmed, representing the Ministry of Petroleum Resources, round out the lineup.

Exercising his powers under Section 59(2) of the Petroleum Industry Act (PIA) 2021, President Tinubu underscored that the restructuring aims to enhance operational efficiency, restore investor confidence, boost local content, and drive economic growth through gas commercialization and diversification.

For years, the NNPC has been a lightning rod for criticism, with successive boards and management teams accused of mismanagement, corruption, and failing to deliver value despite Nigeria’s status as Africa’s largest oil producer. Calls for its dissolution or radical reform have grown louder, with energy experts and citizens pointing to chronic underperformance.

“For Nigeria to make progress, the President will need to fire the entire executive management and board of NNPC and approve for its unbundling,” energy expert Kelvin Emmanuel argued last month.

He also called for overhauls of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), adding, “The oil and gas sector needs a state of emergency more than any Nigerian state.”

Emmanuel’s critique reflects a broader sentiment that the NNPC’s entrenched inefficiencies have stymied national development.

Financially, the NNPC has long struggled to justify its existence as a profit-making entity. Despite billions of naira allocated annually for operational costs, the company reported consistent losses for years. In 2023, the NNPC posted a profit of $1.5 billion, its first significant positive result in years, following reforms under the PIA. However, this figure was widely dismissed as inadequate given Nigeria’s oil wealth.

“Saudi Aramco did $163 billion in profits for 2022. But a clown will come here and tell me that the miserable $1.5 billion NNPC did in profits is commendable! Fire the board and management of NNPC and appoint professionals with cognate experience,” Emmanuel declared last year.

Others have noted that the NNPC’s profits pale in comparison to global peers like Saudi Aramco or even regional players like Angola’s Sonangol, which have leveraged their resources more effectively.

The Tinubu administration has responded to these concerns with a reform agenda since taking office in 2023. Last year, the NNPC reported $17 billion in new investments, a milestone the government hopes to build upon, targeting $30 billion by 2027 and $60 billion by 2030. Production goals are equally ambitious: oil output is slated to reach two million barrels per day by 2027 and three million by 2030, while gas production is expected to hit 8 billion cubic feet daily by 2027 and 10 billion by 2030.

To reduce Nigeria’s dependence on imported petroleum products, Tinubu has directed the new board to increase NNPC’s crude oil refining output to 200,000 barrels per day by 2027 and 500,000 by 2030. An immediate action plan mandates a strategic portfolio review of NNPC-operated and Joint Venture assets to ensure alignment with value maximization objectives.

Tinubu acknowledged the outgoing board’s contributions, particularly their role in rehabilitating the Port Harcourt and Warri refineries, which resumed production after prolonged shutdowns.
“Their dedicated service has laid a foundation for progress, and I wish them success in their future endeavors,” he said.

However, the scale of the challenges ahead—aging infrastructure, Niger Delta insecurity, and global energy transitions—will test the new board’s ability to deliver. Public skepticism remains high, with many Nigerians viewing the NNPC as a symbol of systemic failure. Whether Ojulari, Kida and their team can break from the past and meet the administration’s lofty targets will determine if this overhaul marks a turning point or merely another chapter in the NNPC’s troubled history.

Nigeria has secured a $500 million loan from the World Bank to fund its Community Action for Resilience and Economic Stimulus Program, a targeted effort to address escalating economic woes and support the nation’s most vulnerable.

Approved on March 28, 2025, the loan aims to provide relief to households and small businesses reeling from inflation, food insecurity, and economic instability, with a focus on grassroots interventions. Yet, as the country’s debt profile balloons and public skepticism grows, the initiative is drawing both cautious optimism and sharp scrutiny from stakeholders who fear the funds may not reach their intended beneficiaries.

The World Bank framed the program as a vital step toward tackling systemic vulnerabilities in Nigeria’s economy. The initiative seeks to alleviate the burden of soaring living costs, strengthen community resilience, and enhance food security while fostering sustainable economic opportunities for those hit hardest by recent disruptions. This loan is part of a broader financial lifeline this week, with two additional packages—an $80 million loan for nutrition outcomes and a $552 million loan for basic education—awaiting final clearance on March 31, 2025.

These efforts align with the World Bank’s strategy to bolster Nigeria’s development priorities in healthcare, education, and poverty alleviation, with the institution stressing the need for efficient implementation to ensure maximum impact.

However, the loan has once again ignited concern about Nigeria’s growing debt profile. The Central Bank of Nigeria (CBN) underscored the mounting debt context in its Fourth Quarter 2024 Economic Report, released Monday. Nigeria’s external debt reached N66.14 trillion ($43.03 billion) by Q3 2024, a 0.30% uptick from $42.90 billion in Q2 and a 3.40% rise from $41.59 billion in Q3 2023. Servicing this debt drained $1.34 billion by September 2024, split between $0.72 billion in principal repayments (53.73%) and $0.62 billion in interest (46.27%).

Under President Bola Tinubu, Nigeria has clinched approvals for 11 World Bank projects totaling $7.45 billion in under two years. However, DMO data show only $774.99 million—16%—had been disbursed by July 31, 2024. Nigeria’s World Bank debt stands at $17.32 billion, with $16.84 billion owed to the International Development Association (IDA) (39.14% of external debt) and $485.08 million to the International Bank for Reconstruction and Development (IBRD) (1.13%). This slow disbursement, paired with a rising debt stock, has intensified public and expert unease.

Beyond the fiscal strain, a large swath of Nigerians worry the $500 million loan will vanish into private pockets rather than reach its targets. Social media reflects this distrust, with X users questioning accountability. “Another $500 million to line pockets while we starve?” one post read. The sentiment echoes past criticisms of mismanagement, amplifying calls for transparency.

LCCI Weighs In

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the loan’s potential but demanded rigor. Director-General Dr. Chinyere Almona issued a statement urging the government to ensure the judicious use of the fund.

“The Lagos Chamber of Commerce and Industry (LCCI) acknowledges the recent approval of a $500 million loan by the World Bank to Nigeria under the Community Action for Resilience and Economic Stimulus Program. This development comes at a crucial time as the nation grapples with mounting economic challenges, including inflationary pressures, declining purchasing power, and an increasingly burdensome debt profile. While this intervention is aimed at supporting poor and vulnerable households and firms, it is imperative that its broader implications on businesses and the economy pose a concern to the business community” she said.

Dr. Almona stressed transparency adding that: “The loan’s direct impact on small businesses and vulnerable populations, through grants and livelihood support, presents a potential short-term stimulus. It can enhance food security and community resilience, mitigating the effects of economic hardship at the grassroots level. However, the broader macroeconomic effects must be carefully considered. Nigeria’s rising debt burden is a growing concern, particularly given the slow pace of disbursement and implementation of previously approved loans.”

She called for “a robust monitoring and evaluation framework” to prevent misallocation and urged prioritizing concessional financing for viable projects.

The LCCI also pushed for structural reforms, demanding that Policies focus on improving infrastructure, ensuring policy consistency, and addressing forex challenges to support private sector growth and attract investment.

Against the backdrop of the World Bank’s share of Nigeria’s external debt reaching $17.32 billion, Dr. Almona warned that the question of debt sustainability has become increasingly pressing.

According to her, if not efficiently managed, additional borrowing could exacerbate fiscal vulnerabilities, weaken investor confidence, and limit the government’s ability to execute long-term economic reforms.

She highlighted persistent issues—poor power supply, high energy costs, and forex volatility—urging diversification to reduce debt reliance.