The Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company (NNPC) Limited, Mele Kyari, recently unveiled ambitious targets for the state-owned oil giant. In a press statement by the Chief Corporate Communications Officer of NNPC, Olufemi Soneye, Kyari disclosed that the company is eyeing a significant increase in profits, aiming for N2 trillion in the upcoming audited financial statements for the year 2022.
This revelation came during a courtesy visit by Kyari and a delegation from NNPC Ltd to the Senate President, Senator Godswill Akpabio, at the National Assembly in Abuja on Wednesday, November 22, 2023.
Highlighting the recent financial achievements of NNPC, Kyari stated that the company had commenced dividend payments to its shareholders since July of the current year. He emphasized a remarkable growth in the profit margin, showcasing NNPC’s commitment to financial sustainability.
NNPC, responsible for 30% of Nigeria’s downstream retail market, plays a crucial role in ensuring the nation’s energy security, a factor directly linked to national security. Kyari assured that the company has devised comprehensive plans to meet the demands of the year-end festivities and beyond, expressing confidence in the uninterrupted supply of petroleum products during this period.
Acknowledging the National Assembly’s instrumental role in passing the Petroleum Industry Act (PIA) 2021, Kyari noted that this legislative effort has birthed a new commercially oriented National Oil Company (NOC) operating under the governance principles of the Company & Allied Matters Act (CAMA). The enactment of the PIA 2021 has significantly boosted NNPC Ltd’s profitability margins, transitioning from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021.
Kyari underscored NNPC Ltd.’s comprehensive involvement in the entire oil and gas value chain, asserting control over approximately 30% of the nation’s petroleum downstream retail market. Despite challenges such as crude oil theft and pipeline vandalism affecting the company’s operations, Kyari highlighted successful collaborations with security services and third-party security contractors, leading to increased crude oil production.
In pursuit of broader national goals, NNPC is actively investing in gas and power projects across the country to support the Federal Government’s objectives in power generation and industrialization. The commitment extends to the revitalization of local refining of petroleum products, with collaboration initiatives involving indigenous refiners. The ultimate aim is to position Nigeria as a net exporter of petroleum products.
Kyari reiterated the company’s robust plans for the supply of petroleum products, specifically Premium Motor Spirit (PMS) or petrol. These plans are designed to ensure an ample and sustained supply beyond the ember months and into the new year. The NNPC CEO’s assurances align with the broader strategy to enhance the resilience and efficiency of the country’s energy sector.
During the visit, Senate President Godswill Akpabio commended NNPC’s proactive measures, assuring the GCEO of the 10th Senate’s support. Akpabio emphasized the importance of positive news for Nigerians and expressed satisfaction with NNPC’s commitment to providing sufficient petroleum product supply during the upcoming festive period.
In summary, Mele Kyari’s announcement reflects NNPC Ltd.’s strategic goals and financial achievements, positioning the company as a key player in Nigeria’s energy landscape. The collaborative efforts with the National Assembly, security services, and indigenous refiners underscore a comprehensive approach to addressing challenges and driving the nation towards energy self-sufficiency.
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