The ongoing reforms and the significant growth of the Nigerian National Petroleum Company (NNPC) Ltd under the leadership of the Group Chief Executive Officer, Mele Kyari, is deserving of commendation, the House of Representatives has said.
He commended the on-going reforms at the NNPC Ltd in particular and the oil and gas industry in general, saying the legislature was very pleased with the company’s growth from a loss-making company into a profit-making commercial entity.
Speaking in Abuja when the top management team of the NNPC Ltd. led by the Group CEO, Mele Kyari visited him in his office at the National Assembly Complex, on Thursday, the Speaker of the House of Representatives, Tajudeen Abbas, described the NNPC Ltd as a critical stakeholder in Nigeria’s economy.
The Speaker commended the Kyari-led management of initiating various reforms that have resulted in the fundamental turn around of the fortunes of the company.
He said it was imperative for all arms of government to support the Company to enable it deliver on its mandate in the oil and gas industry.
“When we discuss the Nigerian economy, we must talk about the NNPC as a dominant force. We are delighted that the ongoing reforms in NNPC Ltd have started yielding fruits. It is pleasing to hear that you have moved from a loss-making entity to a profit-making one. We urge you to sustain the momentum of these reforms,” the Speaker said.
The Speaker, who congratulated President Bola Tinubu for the bold decision to remove subsidy on petroleum products said the singular decision has relieved the country of a major problem that has bogged it for several years.
He called on the management of the NNPC Ltd to devise more practicable ways of revamping the nation’s four refineries to turn around their fortunes for the better.
Describing crude oil theft and pipeline vandalism as huge problems the industry was facing, Abbas said if left unchecked, the twin problem could bring the nation’s economy to a halt.
The Speaker gave the assurance that the Parliament would support the NNPC Ltd in its fight against the twin menace to enable it realise its operational goals.
Earlier in his remarks, the GCEO of NNPC Ltd., Mele Kyari said with the passage of the Petroleum Industry Act (PIA) 2021, which provided the legal, fiscal and regulatory frameworks for the petroleum industry, the NNPC Ltd’s profitability margins have significantly grown, from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021.
Kyari said the NNPC Ltd. was targeting a profit margin of N2 trillion when the 2022 Audited Financial Statements (AFS) are released, adding that since July this year, the Company started paying dividends to its shareholders.
While lauding the National Assembly for the critical role it played in the enactment of the Petroleum Industry Act (PIA) 2021, Kyari said this legislative endeavour had given birth to a new commercially-oriented National Oil Company (NOC) governed by the Company & Allied Matters Act (CAMA) principles.
He informed the House that the Company made robust plans for the supply of petroleum products, especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the new year festivities.
“By the creation of the Nadtional Assembly, NNPC Ltd. is saddled with the responsibility of guaranteeing Nigeria’s energy security, which is critical to national security. We have made a robust plan for the forthcoming end of the year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” the GCEO assured.
