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GMD, Group ED F&A careers ended with NNPC in line with PIA provisions, government circular —NNPC Limited

Malam Mele Kyari, Group Managing Director of NNPC Limited

*The NNPC Limited explains the previous ranks of Group Managing Director or Group Executive  Director F&A of the Company are not a consideration in the appointment of the CEO or CFO of NNPC Limited ,in line with the provisions contained in Nigeria’s Petroleum Industry Act

Isola Moses | ConsumerConnect

The NNPC Limited has clarified that the Group Managing Director and Group Executive Director F&A career with Nigerian National Petroleum Corporation ended in line with the provisions of Petroleum Industry Act and appropriate Federal Government’s circular.

ConsumerConnect reports the NNPC Limited said the Company’s attention was drawn to what it has described as “the malicious publication” by Sahara Reporters.

The state oil firm, in a statement issued in Abuja, FCT, noted the said publication alleged inappropriateness of the disengagement of Malam Mele Kyari, Group Managing Director (GMD) and Mr. Umar Ajiya, GED F&A, from the services of the old Corporation and their subsequent appointment by Mr. President to commence a new tenure as Group CEO and CFO respectively in the new NNPC Limited.

Mr. Garba Deen Muhammad, Chief Corporate Communications Officer at NNPC Limited, stated the general public might recall the passage of the Petroleum Industry Act (PIA) and the successful transition of the Nigerian National Petroleum Corporation to a commercially-driven National Energy Company, now known as the NNPC Limited.

Muhammad explained the PIA 2021, in addition to the creation of NNPC Limited, has made clear and unambiguous provisions relating to Governance, Administration, and the appointment of a Chief Executive Officer (CEO), a Chief Financial Officer (CFO) and Board of Directors by Mr. President.

The PIA 2021 is deliberate about the long term sustainability of the 20 years long petroleum industry reform that climaxed in the creation of NNPC Limited as a commercially driven National Energy Company, with focus on sustainable value creation.

The Company also said pursuant to the provisions of the Act, appointment of the CEO and CFO of NNPC Limited by the President of the Federal Republic of Nigeria is on the basis of distinct terms and conditions of Service including tenure, employment benefits and termination.

Muhammad further noted that the appointment of CEO and CFO is not a career posting, as erroneously presented by the media outlet.

The Company said: “Specifically, Section 59(3) of the PIA 2021 has clearly stipulated the conditions to be considered in appointing the CEO and CFO of NNPC Limited without recourse to previous employment ranks in the Corporation.

“The previous rank of GMD or GED F&A was, therefore, not a consideration in the appointment of the CEO or CFO of NNPC Limited.”

The statement noted “the appointments of Malam Mele Kyari and Mr. Umar Ajiya as NNPC Limited Group CEO and CFO respectively by Mr. President for a tenure of five years each with effect from 16 September, 2021, had ended their employment with the Corporation, and are thus entitled to their terminal benefits in respect thereof.”

The NNPC Chief Corporate Communications Officer stated in view of the provisions of the Act, the new tenured roles they assumed with NNPC Limited cannot be regarded as continuance of their previous positions in the defunct Corporation.

The Company also explained: “For further clarity on the misrepresentation of facts by Sahara Reporters, the Circular issued by the Head of the Civil Service of the Federation, dated 27 July, 2009, has explicitly stated that appointments as Chief Executives of Government-Owned Companies are ‘tenured appointments’, and in respect of such tenured appointments, career officers who wish to take up such appointments shall retire from service, in order to run their tenure uninterrupted.

“The circular recognises a distinction between a tenured appointment to serve as Chief Executive of a government-owned company, as distinct from a career office.”

According to NNPC Limited, public service rules require termination of any fixed career appointment to take up a tenured role.

“It is, therefore, our belief that the informed general public will disregard the misinformation and misrepresentation of facts published by Sahara Reporters.

“NNPC compensation does not pay gratuity into billions and we are a compliant organisation that is committed to delivering greater value to Nigerians in strict compliance with extant laws and circulars,” Muhammad said.

It restated that the Group CEO and the CFO had demonstrated patriotism by ending their career appointments with the former Corporation to serve the country on five years’ tenured appointment in NNPC Limited.

The Company added: “The general public is therefore advised to disregard the spurious and malicious publications while the company will take necessary legal steps to seek redress.”

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