By Danjuma Lamido
I recently came across an article titled “NNPCL and the Nigerian Black Hole,” written by Dr Muiz Banire, where he said that “it will take a whole book to catalogue the accusations bothering on sleaze associated with the operation of the Nigerian National Petroleum Corporation as it was, but now a limited liability company. Is it subsidy racketeering? Is it price manipulation? Is it storage manoeuvring, diversion, and smuggling? The list is endless.”
People will always come together in support of you if you promote efficiency and have a positive social impact. Honesty and skilfulness foster confidence. Others who continuously demonstrate quality, transparency, moral behaviour, and competence in their work earn the respect and confidence of others around them.
Since taking over as the head of the former NNPC on July 7, 2019, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), has shown incredible competence and formidable capabilities in the way he has positively transformed the company’s fortunes.
This changeover took place at a pivotal moment for the company, the Nigerian oil and gas industry, and the country’s economy. It was a turbulent time characterised by decreased output, an increase in oil pipeline vandalism, widespread oil theft, and a disgruntled workforce within the company.
Given everything happening in the petroleum industry, Banire’s criticism of NNPC Ltd. is not reasonable. Most of those who rant against him have been founded on opinions rather than factual information.
I recall that Mele Kyari has embraced a strategic framework for operations that was founded on four fundamental principles: transparency, accountability, and performance excellence. These core values played a pivotal role in signalling a significant shift towards improvement, a prophecy that was indeed fulfilled. His endeavours swiftly commenced the revitalisation of the NNPCL and following his appointment in 2021 as the Chief Executive Officer of the revamped NNPCL by then President Muhammadu Buhari, these guiding principles became the cornerstone for the ongoing efforts to guide the company towards global excellence.
The company has performed exceptionally well under his supervision since he took on the position of NNPCL GCEO. He has expertly turned around seemingly overwhelming issues and barriers by navigating through them.
The enormous obstacles the company faces daily include product smuggling, crude oil theft, and pipeline vandalism—and yet it can maintain the country’s fuel supply and crude oil output, which are not included in Banire’s research.
Banire seems to forget that a significant aspect of Kyari’s legacy will centre on his endeavours and monumental progress in revamping the company’s fortunes and the entire oil and gas sector, particularly through his vigorous campaigns against the rampant theft of Nigeria’s oil by criminal syndicates and individuals.
Nigeria had long been unable to reach its oil output goals because of this circumstance. Although this is a noteworthy achievement, it is but a small portion of the extraordinary work he has done. Kyari has skillfully used his wealth of knowledge and vision to supervise the NNPCL’s transformation into a more open, profitable, and effective organisation.
It seems that Banire forgot that foreign exchange illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit, which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act.
Do I need to remind Banire that tanker drivers and some dealers no longer find the business attractive because of the problems confronting the sector?
Aside from the problem of scarcity on the rise in dollars, bad roads linking the South and the North, and the free fall of the naira are other factors, and the NNPC Limited is not responsible for them.
A fact-based, non-speculative commentary is the least one should expect from a lawyer of Banire’s calibre.
All along, Kyari has made it clear that the construction of private refineries is welcomed and has underlined the need to follow due process in all undertakings. He does stress, though, that the selling of crude oil has to follow international standards and cannot involve any form of bias or corruption.
Introducing efforts to improve accountability and openness within the NNPCL has been one of Kyari’s most notable achievements. Under his supervision, the business issued its audited financial accounts for the first time in its history, creating a new precedent for openness in Nigeria’s oil and gas sector.
Increased confidence and trust among stakeholders, such as the government, foreign investors, and the Nigerian population, have been praised for this endeavour.
Banire shouldn’t ignore the reality that Kyari has brought such an amazing financial turnaround for the NNPCL. Under his leadership, the company turned a profit that had not been witnessed in nearly 45 years, with a net profit of more than N200 billion in 2020. This extraordinary achievement is attributed to careful cost-cutting tactics, increased operational efficiency, and a deliberate focus on revenue-generating projects.
Under Kyari’s leadership, the NNPCL has started several important projects that would increase Nigeria’s capacity to produce gas and oil. Among these projects is the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, which is expected to boost industrial growth and increase the use of domestic gas. Furthermore, Kyari has played a crucial role in promoting the renovation of Nigeria’s refineries, with a special focus on obtaining self-sufficiency in refined petroleum products.
Kyari has also been a staunch advocate for industry reforms. He played a pivotal role in the enactment of the Petroleum Industry Act (PIA), which seeks to revamp the regulatory framework governing Nigeria’s oil and gas sector. The PIA is anticipated to attract more investments, improve governance, and ensure a fairer distribution of resources. His exceptional leadership during the challenging COVID-19 pandemic is truly noteworthy.
Furthermore, his recognition of the significance of community engagement is evident, as Kyari has prioritised corporate social responsibility initiatives. Under his guidance, the NNPCL has initiated various projects aimed at enhancing the quality of life in oil-producing regions. These initiatives encompass educational programs, healthcare projects, and infrastructure development endeavours.
Looking forward, Kyari’s vision for the NNPCL appears to revolve around further diversifying Nigeria’s energy portfolio, with a specific focus on renewable energy and reducing the carbon footprint of the oil and gas industry.
Kyari has articulated a dedication to transforming the NNPCL into a globally competitive energy corporation that contributes to sustainable development. His tenure as GCEO of the NNPCL has been characterised by notable accomplishments in transparency, financial performance, project implementation, industry reforms, and community involvement.
His leadership has not only revolutionised the organisation but also positioned Nigeria’s oil and gas sector for a more sustainable and prosperous future. Consequently, he rightfully receives the widespread support he is garnering, as he appears revitalised to continue the struggle against those aiming to monopolise and impoverish our collective resources.
According to the information above, Banire’s claim in his write-up that the NNPC influences the two independent regulators, the NUPRC and the NMDPRA, is either false or misguided. If he is genuinely ill-informed about the operations of the industry, he ought to be modest enough to ask questions to better understand the situation.
Danjuma is a public affairs analyst based in Kano State. danjumalamido6@gmail.comÂ
