The Permanent Representative of the Centre for Convention on Democratic Integrity (CDDI) to the ECOSOC-United Nations and Chairman of the Civil Society Policy Forum of World Bank/ African Countries Caucus, Comrade Olufemi Aduwo, has extolled the impressive growth recorded so far by the Group Chief Executive Officer, Nigerian National Petroleum Corporation Limited (NNPCL), Mallam Mele Kyari.
In a statement issued on Wednesday, Comrade Aduwo said the obvious fact that Kyari’s result-driven reforms have fetched NNPCL over N3.4 trillion in the last three years is highly commendable given the financial losses the corporation had always recorded before he came on board.
He said, “Nigeria should also not forget in a hurry the relentless efforts of Mallam Kyari that culminated in the successful passage of the Petroleum Industry Act 2021. Undoubtedly, the efforts of Mallam Kyari has resulted in a new, refreshed, and rejuvenated NNPCL.
“Specifically, Mallam Kyari has gone a step further to initiate new investment benchmarks to further rejuvenate the once ineffective company. Nigeria’s oil and gas industry is now on a transformative path, unlocking opportunities for growth and prosperity in the sector.”
He stressed that there is a bright chance of NNPCL recording greater achievement in the future given what Mallam Kyari’s administration has so far accomplished despite the burgeoning pipeline vandalism, and surging oil theft.
While noting that Kyari’s reformatory model should be adopted by the federal government to strengthen the efficiency of the government agencies, Comrade Aduwo said, “Within the spate of four years of Kyari becoming the GCEO, the story of NNPCL has changed dramatically. In a bid to optimise and reduce overhead costs, a couple of NNPCL subsidiaries were merged and others were optimised for better operability and profitability. President Tinubu should adopt Kyari’s formula and merge some government agencies and parastatals for better performance.”
“In 2018, NNPC had a loss profile of N803 billion, but this was reduced to N1.7 billion under the 2019 Kyari-led administration. This coupled with his eventual declaration of net profit in the year 2020 for the first time in the 44-year history of NNPC. In addition, the same feat was recorded in 2021 and 2022: the company declared N2.5 trillion naira as profit.
“Also under Kyari, the company has taken significant steps towards enhancing transparency and accountability in the industry. One of the ways he has done this is by publishing monthly financial and operational reports. Before now, the financial statements of NNPC has been shrouded in some level of opacity. So, for us to start having financial statements from NNPC, we think it is a good development, especially now that it is transforming into a limited company,” Aduwo explained.
“More importantly, the NNPCL’s $3.3 billion crude oil pre-payment loan it signed with the African Export-Import should be applauded rather than be condemned by ill-informed politicians and non-state actors. ln simple terms, NNPCL agrees to sell a predetermined quantity of future barrels of crude oil production in advance, while securing upfront payment from a special purpose vehicle (SPV) backed by international financial institutions.
“The forward sale of oil, would ultimately provide dollar financing to the federal government. Such laudable financial arrangement should not have generated any controversy and negative comments rather Kyari should be commended,” He added.
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