House of Representatives commends NNPC Limited's reforms and profitability

…Pledges support for Kyari-led management
Mele Kyari and Speaker Abbas Tajudeen

The House of Representatives has commended the on-going reforms at the Nigerian National Petroleum Company (NNPC) Limited, saying that the legislature is very pleased with the company’s growth from a loss-making company into a profit-making commercial entity.

The commendation came from the Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, when NNPC Ltd.’s Group CEO, Mr. Mele Kyari led the company’s senior management on a courtesy call to the House of Representatives at the National Assembly Complex, on Thursday, November 23, 2023.

The Speaker, who described the NNPC Ltd as a critical stakeholder in Nigeria’s economy, said that it is imperative for all arms of government to support the company to enable it deliver on its mandate.

“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 these reforms,” the Speaker stated.

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 over the years.

He called on the NNPC Ltd management to devise more practicable ways of revamping the nation’s refineries to turn around their fortunes for the better.

Describing crude oil theft and pipeline vandalism as a huge problem which, if left unchecked, could bring the nation’s economy to a halt, the Speaker assured that the parliament would support the NNPC Ltd in its fight against the menace.

Earlier in his remarks, the GCEO of NNPC Ltd., Mr. Mele Kyari, said that with the passage of the Petroleum Industry Act (PIA) 2021, NNPC Ltd's profitability margins have significantly risen, growing from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021.

Kyari, in a press release by Olufemi O. Soneye, Chief Corporate Communications Officer of NNPC Ltd., noted that NNPC Ltd. is targeting a profit increase of N2 trillion when the 2022 Audited Financial Statements (AFS) are released, adding that since July this year, the company has 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 that this legislative endeavour had given birth to a new commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.

He informed the House that the company has 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 National 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 added.
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