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, extolled the impressive growth recorded so far by the Group Chief Executive Officer, Nigerian National Petroleum Corporation Limited (NNPCL), Mallam Mele Kyari.
According to him, the Civil Society Policy Forum of the World Bank is impressed by the rapid economic development going on within NNPCL under the current management, submitting that it is amazing that NNPCL has accomplished an impressive reform journey within the few years that Kyari became the GCEO.
Aduwo made this known in the press statement that Nigeria should not forget in a hurry the relentless efforts of Mallam Kyari that culminated in the successful passage of the Petroleum Industry Act 2021.
He pointed out that undoubtedly, the efforts of Mallam Kyari had resulted in a new, refreshed and rejuvenated NNPCL.
He said specifically, Kyari had gone a step further to initiate new investment benchmarks to further rejuvenate the once ineffective company. He stressed that Nigeria’s oil and gas industry is now on a transformative path, unlocking opportunities for growth and prosperity in the sector.
Aduwo expressed optimism in the future of NNPCL if Mallam Kyari could achieve so much upon becoming the GCEO at a turbulent period characterised by low production, burgeoning vandalisation of oil pipelines, and oil theft on a grand scale.
He sais, “Within the spate of four years of becoming the GCEO, the story 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 parasatals for better performance.”
He commended Kyari, saying that the 2018 NNPC loss profile of N803bn was reduced to N1.7bn under the 2019 Kyari-led NNPC as GMD/GCEO, maintaining that with his eventual declaration of net profit in 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 2.5trillion naira as profit. Moreover, the company has, under Kyari, 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,” he said.
In his words, “More than the above, the NNPCL’s $3.3 billion crude oil pre-payment loan it signed with the African Export-Import should be applauded rather than condemned by ill-informed politicians and non-state actors.”
“ln simple terms, NNPC Limited 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,” he averred.
He advised that such laudable financial arrangement should not have generated any controversy and negative comments rather Kyari should be commended.
