Jackson Gaius-Obaseki had been appointed group managing director of the NNPC after Obasanjo won a four-year Presidential term in 1999. He has now been replaced with Funso Kupolokun, the former special assistant to Obasanjo on petroleum industry matters.

Public calls for Gaius-Obaseki's sacking had reached a crescendo after he admitted that the NNPC had spent 224 million naira ($US1.7 million) to maintain two suites at the luxurious Abuja Hilton Hotel for him in the past four years.

The somewhat naïve chief further outraged the populous by declaring that staying in the hotel was a sacrifice he had to make for the nation as the expended amount was inadequate to build him befitting accommodation.

However, Gaius-Obaseki can also be considered as a fall guy for the President's failure to supply the oil-rich nation with sufficient fuel for its own domestic needs.

Despite the existence of four government-owned refineries Nigeria has depended on fuel imports since Obasanjo took office because the poorly maintained refineries have never functioned at more than 30% capacity.

Obasanjo's declarations that sabotage by interest groups involved in fuel imports were responsible for the failure of the refineries to work at full capacity fell on deaf ears as the people's focus remained on Gaius-Obaseki.

Another key change in the oil industry also announced on Monday was the appointment of Edmund Daukoru as Obasanjo's special adviser on petroleum and energy. Daukoru, a former head of NNPC, replaces Rilwanu Lukman.