By ABAH ADAH, Abuja
Group Managing Director Nigerian National Petroleum Corporation (NNPC) Mallam Mele Kyari has stated that the ₦287bn it posted earlier as profit after tax in the 2020 financial year was as a result of some unprecedented fiscal disciplinary measures it embarked upon.
This was disclosed in a statement signed by NNPC’s Group General Manager, Group Public Affairs Division, Garba Deen Muhammad and made available to The SUMMIT.
The clarification is coming hours after President Muhammadu Buhari who doubles as the Minister of Petroleum Resources declared that the corporation had for the first time since its establishment 44 years ago made an after taxation profit of 287 billion Naira.
The declaration which triggered some reactions among Nigerians perhaps against the backdrop of the massive poverty in the land was contained in a statement by Femi Adesina, Special Adviser to the President on Media and Publicity.
The President explained that NNPC losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019, paving way for the eventual declaration of net profit of ₦287bn in year 2020, adding that the declaration was “in fulfillment of an earlier pledge by the federal government to publicly announce the financial position of the corporation.
Speaking at a press conference Thursday in Abuja, the NNPC boss, Kyari, attributed the turn-around of the Corporation from a loss of ₦803bn in 2018 to profit of ₦287bn in 2020 to the aggressive implementation of cost-cutting measures, improved efficiency through business automation, emphasis on commercially-focused investments and non-interference in the management of the Corporation from any quarters.
The GMD also added that the Corporation saved a lot of cost through contract renegotiation by up to 30% on the heels of the Covid-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses.
He said Management’s focus on the prioritisation of investment and staff welfare also helped in boosting the corporation’s overall productivity and bottom line.
Speaking earlier while kick-starting the press conference, the Alternate Chairman of the NNPC Board of Directors and Minister of State for Petroleum Resources, Chief Timipre Sylva, who joined the press conference virtually, congratulated the GMD, Management and staff of the Corporation on the feat of posting profit for the first time since its incorporation in 1977.
He said NNPC’s emergence from loss into profitability, coming shortly after the signing into law of the Petroleum Industry Bill, was a proud moment for him, adding that this was a season of achievements for the nation’s oil and gas sector.
Members of the NNPC Board, Chief Pius Akinyelure, Mallam Mohammed Lawal, Dr. Tajudeen Umar and Mrs Lami Onayi Ahmed, who were also present at the event, also echoed the Minister and congratulated the management and staff of the corporation on the feat achieved.