Kyari attributes ₦287bn NNPC profits to effective strategies

. Sylva, Board laud Corporation

The Nigerian National Petroleum Corporation (NNPC), has attributed the ₦287billion profit after tax in the 2020 financial year, to new strategies including the aggressive implementation of cost-cutting measures introduced by its management.

Other factors were improved efficiency through business automation, emphasis on commercially-focused investments, and non-interference in the management operations.

The Group Managing Director, NNPC, Mele Kyari, who gave the explanation on Friday in Abuja, said through these efforts the management was able to turn around the fortunes of the Corporation from a loss position of ₦803billionn in 2018 to profits of ₦287billion in 2020.

The explanation follows Thursday’s announcement of the historic profits in 44 years by President Muhammadu Buhari, who also doubles as the Minister of Petroleum Resources.  

Special Adviser to the President (Media and Publicity), Femi Adesina, in a statement said the announcement is sequel to the completion of the statutory Annual Audit exercise for Year 2020, and in fulfilment of an earlier pledge by the Federal Government to publicly announce the financial position of the NNPC.

“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources,” the statement reads.

“The NNPC losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history,” it added.

Congratulating the Board and Management for the feat, the NNPC was therefore directed to “timely publish the Audited Financial statements in line with the requirements of the law, and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources.”

In a statement on Friday, the NNPC’s Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, quoted Kyari as saying that the Corporation saved a lot of cost through contract renegotiation by up to 30% on the heels of the COVID-19 pandemic.

He added that the introduction of technology drastically cut travel costs 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 prioritization of investment and staff welfare also helped in boosting the Corporation’s overall productivity and bottom line.

Speaking earlier, the Alternate Chairman of the NNPC Board of Directors and Minister of State for Petroleum Resources, Timipre Sylva, who joined the press conference virtually, was said to have congratulated the GMD, Management and staff on the feat of posting profits for the first time since 1977.

He said NNPC’s emergence from loss into profitability, which is sequel to the signing into law of the Petroleum Industry Bill, was a proud moment for him, and thus a season of achievements for the nation’s oil and gas sector.

Members of the NNPC Board, who were also present at the event, including Pius Akinyelure, Mohammed Lawal, Dr. Tajudeen Umar, and Mrs Lami Onayi Ahmed, also echoed the Minister’s sentiments and congratulated the Management and staff on the feat.

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