Business

NNPCL TURNING A NEW LEAF* _By:_ *Emmanuel Onwubiko

Published

12 months ago

August 27, 2024

Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working

NNPCL TURNING A NEW LEAF
_By:_ *Emmanuel Onwubiko

Camillus Eboh is one of the most experienced Nigerian journalists still practicing after over two decades since he began at The Guardian newspaper of Nigeria which is the indisputable flagship of newspapering in Nigeria. This gentleman now works for a foreign news agency known as Reuters.

Last May, Camilus Eboh did a report on the Nigerian National Petroleum Company Limited whereby he disclosed that Nigeria spent more than 11.35 trillion naira ($25 billion) on fixing the country’s three moribund refineries in the past 10 years, the Ninth session of the National parliament said in a report, calling for a forensic audit of the matter.

Despite the huge amounts spent to rehabilitate the refineries, Reuters reported that they were producing at less than 30% capacity, the lower house of parliament said late on Tuesday. This has kept the country reliant on fuel imports, which it subsidies to keep prices low.

The report came as state oil firm NNPC Ltd on Wednesday hiked petrol prices to as high as 557 naira ($1.21) per litre, from 189 naira, days after new President Bola Tinubu said fuel subsidies would be scrapped.

Tinubu has inherited a myriad of problems, including low economic growth, high public debts, double-digit inflation and militant activity.

The lawmakers in the immediate past dispensation transmitted their recommendation to new members and government.

The foreign news agency further observed that NNPC has been working to revamp the refineries, which were shut down entirely in 2021 and produced little or no fuel over the past decade. The management of the NNPCL said it has begun far reaching reforms to make the company a successful and profitable business rather than the persistent bad name it had garnered in the past before its transformation to the present entity known as the NNPCL.

Empirical evidence seem to show that the management has indeed begun the moves to achieve the stated objective of turning the NNPCL around into a transparently governed entity and a profitable company at that.

The recent release of the 2023 Audited Financial Statement (AFS) by the Nigerian National Petroleum Company Limited (NNPCL), which declared a net profit of N3.3 trillion, is not just a financial milestone—it is a testament to a seismic shift in corporate governance, transparency, and accountability within Nigeria’s petroleum industry. The transformation from the old Nigerian National Petroleum Corporation (NNPC) to NNPCL, under the strategic leadership of Group Managing Director Mele Kyari, marks a new era for the organization. This new era signals a decisive departure from the opaque and inefficient practices that once plagued the former NNPC.

To appreciate the significance of NNPCL’s current achievements, reflecting on the dark days of the old NNPC is essential. For decades, the NNPC was synonymous with corruption, inefficiency, and a lack of accountability. Despite its vast resources and strategic importance to Nigeria’s economy, the corporation was notorious for its inability to operate transparently. When they were released, financial statements were often incomplete or unreliable, and the public had little to no insight into the corporation’s inner workings. This lack of transparency bred corruption, mismanagement, and a loss of public trust.

The NNPC’s operations were shrouded in secrecy, with no clear accountability to the Nigerian people. The absence of credible financial reporting allowed corrupt practices to fester unchecked. Revenue leakages, questionable contracts, and unaccounted oil sales became the norm, leading to massive losses for the Nigerian economy. The corporation posted losses yearly, with no clear strategy for turning the tide. By 2018, the NNPC had recorded a staggering loss of N803 billion, underscoring the depth of its financial crisis.

This culture of opacity extended beyond financial reporting. The NNPC’s dealings were often conducted behind closed doors, with little regard for due process. The corporation’s failure to engage with stakeholders, including the Nigerian public, further eroded its credibility. For many Nigerians, the NNPC became a symbol of the worst excesses of public sector corruption and mismanagement.

The transition from the old NNPC to the NNPCL, facilitated by the Petroleum Industry Act (PIA) 2021, has been nothing short of revolutionary. The PIA provided the legal framework for the transformation of the NNPC into a commercially oriented and profit-driven entity, with clear mandates for transparency, accountability, and efficiency. This transition was not merely a change in nomenclature; it represented a fundamental shift in the corporation’s operational philosophy and governance structure.

One of the most significant changes introduced by the PIA was the requirement for NNPCL to publish its audited financial statements annually. This provision has been a game-changer, compelling the corporation to adopt global best practices in financial reporting. For the first time in its history, NNPCL began to operate with the level of transparency expected of a publicly traded company. The regular release of its financial statements has not only enhanced public trust but also provided critical insights into the corporation’s financial health and performance.

The leadership of Mele Kyari, who assumed office as Group Managing Director in 2019, has been instrumental in driving these reforms. Kyari brought a clear vision for transforming NNPCL into a world-class energy company, focused on profitability, efficiency, and accountability. Under his stewardship, NNPCL has implemented far-reaching reforms aimed at enhancing operational efficiency, reducing costs, and maximizing revenue. The results have been nothing short of remarkable.

NNPCL’s 2023 financial performance is a testament to the success of these reforms. The corporation posted a net profit of N3.3 trillion, representing a 28% increase over the previous year’s profit of N2.5 trillion. This impressive financial performance marks the highest profit ever recorded by the corporation since its inception 46 years ago. Such a turnaround would have been unthinkable in the days of the old NNPC, where losses were the norm, and profitability seemed out of reach.

The increase in profit is particularly noteworthy given the challenging operational and economic environment in which NNPCL operates. Despite these challenges, the corporation has managed to enhance its productivity, optimize its resources, and deliver value to its shareholders. The declaration of a final dividend of N2.1 trillion, approved by the shareholders, is further evidence of NNPCL’s commitment to delivering tangible benefits to its stakeholders.

Central to NNPCL’s success has been the strategic leadership of Mele Kyari and the NNPCL Board, chaired by Chief Pius Akinyelure. The Board’s commitment to good corporate governance, transparency, and accountability has been critical in securing shareholder confidence and driving the corporation’s financial performance. Under Kyari’s leadership, NNPCL has adopted a proactive approach to governance, with a focus on institutionalizing transparency across all levels of the organization.

This commitment to transparency is evident in the corporation’s approach to financial reporting. NNPCL’s financial statements are now prepared in accordance with International Financial Reporting Standards (IFRS), ensuring that they meet global standards of accuracy and completeness. This level of transparency is unprecedented in the history of the corporation and has been instrumental in restoring public trust.

Moreover, NNPCL has taken significant steps to enhance its operational efficiency. The corporation has implemented cost-cutting measures, streamlined its operations, and invested in technology to improve its processes. These efforts have not only reduced operational costs but have also improved the corporation’s overall productivity. The result has been a more agile, responsive, and profitable organization.

While the progress made by NNPCL is commendable, it is essential to recognize that the journey toward sustained transparency and accountability is ongoing. The corporation must remain vigilant against any attempts to revert to the practices of the past that nearly destroyed the NNPC. The dark days of corruption, inefficiency, and mismanagement must never be allowed to return.

The history of the old NNPC serves as a stark reminder of the dangers of complacency. The culture of secrecy that once pervaded the corporation created an environment where corruption could thrive. Financial leakages, dubious contracts, and unaccounted revenues were the order of the day, with little to no accountability. This culture not only undermined the corporation’s financial performance but also eroded public trust in its ability to manage Nigeria’s vast petroleum resources effectively.

To avoid repeating these mistakes, NNPCL must continue to strengthen its capacity for transparency and accountability. The corporation must institutionalize the reforms it has implemented, ensuring that they become deeply embedded in its operational culture. This includes maintaining the highest standards of financial reporting, adhering to global best practices, and engaging openly with stakeholders.

One of the key challenges facing NNPCL as it moves forward is ensuring that its commitment to transparency and accountability becomes a permanent feature of its operations, rather than just a temporary shift. To achieve this, NNPCL must continue to invest in its governance structures, processes, and human capital.

The corporation should focus on continuously improving its financial reporting processes to ensure that its statements are accurate, complete, and timely. This will require ongoing investment in technology and training to enhance the capacity of its finance and accounting teams. By maintaining high standards of financial reporting, NNPCL can ensure that its operations remain transparent and accountable.

Good corporate governance is the foundation of transparency and accountability. NNPCL should consistently uphold the principles of good governance, including integrity, fairness, and accountability. This requires the active engagement of the Board and management in setting the corporation’s strategic direction, monitoring performance, and ensuring that all decisions are made in the best interests of the shareholders and the Nigerian people.

Institutionalizing transparency across all levels of the organization is also essential. This involves adopting open and transparent procurement processes, ensuring that contracts are awarded based on merit, and preventing conflicts of interest. By embedding transparency in its operations, NNPCL can reduce the risk of corruption and enhance its reputation as a trustworthy and accountable organization.

The commitment to transparency must also extend beyond internal operations to include active engagement with external stakeholders. This includes regular communication with the public, investors, regulators, and other stakeholders about the corporation’s activities, performance, and plans. By fostering open dialogue, NNPCL can build trust and ensure that its operations align with the expectations of its stakeholders.

Finally, NNPCL must promote a culture of integrity within the organization. This requires a clear commitment from the leadership to uphold ethical standards and hold individuals accountable for their actions. By fostering a culture of integrity, NNPCL can ensure that its employees are committed to doing what is right, even in the face of challenges.

The transformation of NNPC into NNPCL represents a significant achievement for Nigeria’s petroleum industry. However, the journey is far from over. NNPCL must continue to build on its successes, deepen its reforms, and remain committed to transparency, accountability, and efficiency. The corporation’s ability to sustain its profitability, achieve its production targets, and deliver value to its stakeholders will depend on its commitment to these principles.

As NNPCL looks to the future, it must remain focused on its mission of securing Nigeria’s energy future while contributing to the nation’s economic development. The corporation’s ability to achieve these goals will require continued strategic leadership, sound corporate governance, and a relentless commitment to transparency and accountability.

*Emmanuel Onwubiko* _is the Head of HUMAN RIGHTS WRITERS ASSOCIATION OF NIGERIA and was NATIONAL COMMISSIONER OF THE NATIONAL HUMAN RIGHTS COMMISSION OF NIGERIA._

Business

NNPCL and Corruption’s Final Throes

Published

3 days ago

August 16, 2025

Sahara Weekly

NNPCL and Corruption’s Final Throes

By Pius Olasanmi

In the twilight of the Obasanjo administration, when Nigerians were still capable of being outraged, when Turn Around Maintenance (TAM) of refineries was a buzzword that still held some mysticism to bamboozle citizens, during a conversation, a certain man said something profound. The man said, “As a businessman, if I were the owner of these refineries, knowing that they are three decades old, I would take the last money I have, hire bulldozers, raze them to the ground, and obtain loans to build new ones.”

When we pressed him further on why he would engage in such waste, he explained that repairing the refineries is the real waste. He explained that even if the TAM were honestly carried out, a thirty-year-old refinery would never compete favourably with a new one that would integrate contemporary technology. Operating at its best, such a refinery would never be comparatively more efficient. It is therefore pointless to have spent another one naira on the refineries at that point.

A few months later, I had a conversation with a then-lawmaker on an entirely different matter. I mentioned that the National Assembly has failed by not crafting legislation that would criminalise and punish public office holders who foist wrong decisions on the country. The logic: a public office holder need not steal to be punished, wrong decisions should attract penalties for an office holder who opts for the worst of all options when there are less injurious ones.

These established premises speak to the ongoing nauseating efforts at revisionism by those who wrecked the Nigerian National Petroleum Company Limited (NNPCL) and its previous iteration, the Nigerian National Petroleum Corporation (NNPC). Notably, this campaign to rewrite history is traceable to Engineer Mele Kolo Kyari, the disgraced immediate past Chief Executive Officer of NNPCL and his hirelings. They have suffocated the news and the public opinion space with even more lies than they spun while in office.

The Saint Kyari campaign is anchored on convincing Nigerians that the Port Harcourt, Warri and Kaduna Refineries were fully functional when he was booted out of office. So brazen is the campaign that one of its talking heads challenged the group chief executive officer (GCEO), Engr. Bayo Ojulari, to “inform Nigerians categorically what happened to the functioning refineries he inherited from his predecessor, Engr. Mele Kyari.” The effrontery.

We have not forgotten so soon the charade that followed the baffling claim that Nigeria has spent $2.8 billion on the repair of the refineries, while they are not churning out even a single litre of refined product among them. Saint Kyari and his goons played all manner of tricks, all of which embarrassed President Bola Tinubu, who had counted on ticking off the return to productivity of the refineries as part of his achievements, only to realise that he was deceived into celebrating phantoms. Tragic.

Lest we forget, 200 trucks were arranged as props in a well-directed video clip to celebrate the re-streaming of the Port Harcourt Refinery. The disappointment. Nigerians were to learn from several reports that the Port Harcourt refinery was not producing and was instead using old, stored petroleum products to load trucks. Worse still, the Kyari crew was passing off sanction-tainted Russian-sourced crude oil refined in Malta as locally refined products. More insult was piled on the assault on our collective sensibility with the lies that the Port Harcourt Refinery exported semi-finished products. Brazen.

Meanwhile, Kyari and his hirelings called those who pointed out or protested these glaring scams all manner of names. They hid behind industry technicalities and jargon to create the impression that those of us who knew Nigerians were being robbed did not understand what we were saying. The point remains that a $2.8 billion investment can potentially build a refinery with a capacity of around 100,000 barrels per day (bpd). Of course, the actual capacity of such a refinery will depend on various factors, including the complexity of the refinery, the technology used, and the location. That is the amount that Kyari’s regime at the NNPCL took and did not give Nigerians refined products.

Fast forward to Kyari’s sack and the appointment of Engineer Bayo Ojulari, who has demonstrated that things can indeed be done differently. Kyari’s exit was expectedly followed by the Economic and Financial Crimes Commission (EFCC) going after him and his associates. The extent of the theft is better understood against the backdrop of N80 billion being found in the bank account of one of his associates. They went on the run.

Perhaps because the EFCC was biding its time on securing international warrants for the arrests of these characters on the lam, they have become emboldened. They have decided to fight back and rewrite the story of their participation in the greatest fraud against Nigerians. Engineer Ojulari’s renewed mindset, which is entrenching a semblance of the transparency Nigerians demand, became their natural target. The demons that once roamed around the corporation came out with malevolence. They started spinning stories of corruption to tarnish the incumbent who refused to hide their crimes. The objective: bring Ojulari down. But alas, he is winning the war as it stands.

His innocence is proven, and it is glaring that those who want him out are mere charlatans who can no longer ply their corrupt wares because of the impact of the new reforms. Corruption in the NNPCL is in its final throes. The fake news being unleashed against the incumbent leadership is akin to corruption’s last kicks as reforms in the sector strangulate it and its practitioners. The reforms must take place in the NNPCL, whether the industry demons like it or not.

As a parting shot, Kyari and his associates would do well to prepare their defence. In addition to accounting for the $2.8 billion they laundered in the name of repairing the moribund refineries, they must also answer for the poor decision to fix that which is irretrievably broken. Awarding contracts for Turn Around Maintenance of 59-year-old refineries that a right-thinking person had suggested should be demolished almost twenty years ago, when they were only 30 years old, is criminal. Trying to deceive Nigerians that the fake repairs worked is treason.

Olasanmi is a public affairs analyst writing from Lagos.

Business

GRANDIS 5STAR LUXURY APARTMENT & SUITES SET TO REDEFINE LIVING IN VICTORIA ISLAND

Published

4 days ago

August 15, 2025

Sahara Weekly

GRANDIS 5STAR LUXURY APARTMENT & SUITES SET TO REDEFINE LIVING IN VICTORIA ISLAND

Set to Rise elegantly against the Lagos skyline, is the Grandis 5Star Luxury Apartment & Suites. According to Adejuwon Ademola, The General Manager of the Development company, it is more than just a residential building
“it’s a lifestyle statement. Standing 17 floors high in the heart of Victoria Island, this revolutionary masterpiece of modern architecture will offer a panoramic 360° view of Eko Atlantic, Victoria Island, and Ikoyi, transforming every apartment into an exclusive penthouse experience for the world’s most discerning elite.”

Developed by Dumarco Construction Limited, a globally acclaimed company with decades of delivering complex, high-value projects in the highly regulated petroleum, oil, and gas industries, Grandis 5Star brings unmatched international safety standards, uncompromising quality, and timeless elegance into Nigeria’s luxury property market.

> “When you live in Grandis, you’re not just buying a home—you’re investing in peace of mind, world-class safety, and an effortless luxury experience that will remain pristine for decades,” says Adejuwon A. Ademola, General Manager of Dumarco Construction Limited.

The Gold Standard in Safety and Quality

Dumarco’s roots in the oil and gas sector mean the company operates to some of the strictest safety protocols in the world. Every stage—from conceptualization, design, construction, to long-term maintenance—follows internationally accepted procedures and quality assurance measures. Cutting corners is simply not in Dumarco’s vocabulary.

> “In the oil and gas industry, there’s no room for compromise. We’ve brought that same discipline and zero-tolerance for mediocrity into property development,” says Ademola. “That’s why Grandis will be one of the safest and most enduring residential developments in Nigeria.”

To ensure transparency and prevent (project complacency), Dumarco deliberately separates the developer, contractor, and consultant roles, engaging only the most competent professionals in each respective field. Dumarco’s project team includes globally recognized contractors such as Julius Berger, Cappa & D’Alberto, and Elalan, Migliore Construczione & Tecniche (MC&T) and their partners VENCO IMTIAZ CONTRACTING COMPANY (VICC) based in Dubai, UAE, Business Contracting Limited, alongside leading consultants like Morgan Omanitan & Abe, LAMBERT, and James Cubitt.

Grandis – Investments, appreciation, returns and profitability

Our selection process for the location of the project alone was pains-taking and completely thorough scientific process. Top professional companies were employed to conduct a scientific data acquisition and analytical survey of the entire Victoria Island, Ikoyi, Lekki and Eko Atlantic before a project site is selected. Analyzing and acquiring areas developmental charts and trends, studying and gathering historical and present sale prices, rental charge and occupancy rates over a 50 year period from every individual street before the selection of the location of any of our developments especially true for the Grandis Project
He adds,

“Our clients and residents can be rest assured that the location of Grandis has been scientifically proven through all existing data to provide our clients with a 100% occupancy rate, highest developmental location, highest rental income and investment returns. ”

The Grandis Experience

Located minutes away from international corporate headquarters, embassies, and landmarks such as Eko Hotel, Radisson Blu, and the Radisson Red, Grandis offers unmatched convenience for professionals, diplomats, and high-net-worth individuals. Every residence is designed for both indulgence and efficiency, with high-grade finishes, smart-home systems, and private amenities that ensure seamless living.

From sunrise over the Atlantic to the glittering Lagos night skyline, residents will enjoy uninterrupted luxury, supported by discreet and highly trained staff, advanced security systems, and a design that prioritizes comfort and privacy.

> “We designed Grandis for people who want everything—security, elegance, convenience, and the assurance that their home will look as spectacular in 20 years as it does on day one,” Ademola notes.

A Legacy That Lasts

With its combination of visionary architecture, peerless safety, and meticulous maintenance planning, Grandis is built to remain iconic for generations. Thanks to Dumarco’s meticulous approach, the building’s service charges are expected to remain low while its value and appeal continue to appreciate over time.

In a market often marred by shortcuts and substandard practices, Mr Ademola says
Grandis stands as a beacon of what luxury living should be—safe, spectacular, and built to last.

“Grandis 5Star Luxury Apartment & Suites — Where safety meets sophistication, and every detail is designed for a life well-lived.”
He added

Website -www.dumarcoltd.com
Project website – www.26idowutaylor.com
Email [email protected]
Tel / WhatsApp +234 9077777883
GM – Adejuwon A. Ademola

celebrity radar - gossips

Nationwide Talent, One Broadcaster: Tinubu Picks Pedro, Bello, Din, Mohammed to Lead NTA

Published

4 days ago

August 15, 2025

Sahara Weekly

Nationwide Talent, One Broadcaster: Tinubu Picks Pedro, Bello, Din, Mohammed to Lead NTA

Tinubu Overhauls NTA Leadership: Media Powerhouse Rotimi Pedro Takes Helm as DG

President Bola Ahmed Tinubu has announced a major shake-up at the Nigerian Television Authority (NTA), appointing renowned media executive Rotimi Richard Pedro as the new Director-General in a move widely seen as a bold step toward modernising the state broadcaster.

Pedro, a Lagos native, brings nearly 30 years of expertise in broadcasting, sports rights, and marketing communications across Africa, the UK, and the Middle East. A trained entertainment and intellectual property lawyer, he also holds an MSc in Investment Management and Finance from City University Business School, London.

In 1995, Pedro founded Optima Sports Management International (OSMI), which rose to become one of Africa’s leading sports content providers—distributing premium events such as the English Premier League, UEFA Champions League, FIFA World Cup, and CAF competitions to audiences in over 40 countries.

His career highlights include top roles at Bloomberg Television Africa and Rapid Blue Format, as well as advisory work for FIFA, UEFA, Fremantle Media, and the African Union of Broadcasters (AUB). At the AUB, he was instrumental in securing exclusive pan-African free-to-air media rights for all CAF competitions.

Alongside Pedro’s appointment, Tinubu named Karimah Bello from Katsina State as Executive Director of Marketing, Stella Din from Plateau State as Executive Director of News, and Sophia Issa Mohammed from Adamawa State as Managing Director of NTA Enterprises Limited.

Industry insiders credit Pedro with building commercially viable broadcast platforms, driving sponsorship growth, and delivering world-class content to African audiences. His appointment marks one of the most significant leadership changes at NTA in years—signalling the government’s intent to strengthen the broadcaster’s competitiveness in a fast-evolving media landscape.