Our management strategy for declaring N287bn PAT at NNPC ─Kyari

*Malam Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation has disclosed how the firm no more declares losses as the Corporation automates its operational processes and cuts procurement costs by 30 percent in the last financial year among other practical measures

Isola Moses | ConsumerConnect

In attaining the rare feat of declaring N287billion net profit in 2020, after 44 years of the Corporation’s existence, Malam Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), has related what and how his leadership has done things differently in the last few years.

ConsumerConnect reports the NNPC GMD, at a physical cum virtual media briefing late Thursday, August 26, 2021, at the NNPC Towers, Abuja, FCT, disclosed that a number of factors were responsibility for the appreciable progress made in declaring the N287billion Profit After Tax in the last financial year 2020.

NNPC Towers in Abuja

He also stated at the press conference that in line with the current NNPC leadership’s renewed commitment to ensuring transparency and accountability, the Corporation was able to cut costs and show more operational efficiency since the team came onboard in 2015.

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While attributing the achievement to the collective efforts of all in the Corporation, Kyari noted that the current Management team has been able to do things differently by building on what it met on the ground, engaging in extensive collaborations with other industry stakeholders, and reducing losses.

According to him, in regard to the procurement process, the NNPC stopped buying what the Corporation does not really need, automated the operational processes and procedures, and ultimately cut procurement costs by 30 percent especially in the last year.

On the prospect of the stakeholders’ getting considerable dividends from the recent profit the Corporation has recorded, the NNPC Chief stated that it is a possibility.

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Kyari, however, noted that the decision to do this belongs to the Board of the Corporation either to add the profit to the capital or use a portion of it as dividends to the shareholders in line with the provision of the Petroleum Industry Act (PIA) which President Muhammadu Buhari assented to recently.

For more Nigerians to have a stake in the emerging new entity, he also pointed out that there is a possibility for investment in the Initial Public Offering (IPO) on the Stock Exchange in the future, adding though the process may take some time to accomplish.

The forum Thursday was attended by members of the Board of NNPC, top Management, and staff of the state oil firm.