Connect with us

National

NNPC’s novel N287b profit raises posers, rekindles hope

Published

on

nnpc

• Kyari Explains Factors Behind Maiden Profit, Listing On Stock Exchange
• Place Management, Subsidiaries On KPI – Iledare
• NNPC Profits In Last 43 Years May Have Been Embezzled – Fawibe
• Stakeholders Praise 30% Cost Reduction, Other Strategies

In a development akin to a whiff of good fortune in a beleaguered entity, the Nigerian National Petroleum Corporation (NNPC) upturning a 44-year loss-making history with a novel N287b profit has rekindled hope and raised critical questions on the future of the country’s economy, specifically its shrinking revenue and growing debt burden.

Coming amid population upsurge, grinding poverty and an uncertain future for hydrocarbon, stakeholders in both the economy and energy sectors, yesterday, charted pathways that the loss-making behemoth must tread to sustain the new feat.

Advertisement

While most of them insist that sustaining profitability and addressing current impediments remain critical against the backdrop of the Petroleum Industry Act (PIA), which will in the next six months turn the NNPC to a limited liability company, the development could as well serve as a wake-up call on the imperative of delivering profits the way other viable state-owned oil firms do.

Even though some stakeholders maintain that the current administration of the oil company must be commended for stemming the perennial losses, others including, the Chairman/Chief Executive Officer (CEO) of International Energy Services Limited, Dr. Diran Fawibe, insist that the firm repeatedly made profits in the last 43 years, but the funds were embezzled by its managers.
In 2018, Saudi Arabia’s Aramco made a $414.6b revenue; China National Petroleum Corporation recorded $392.9b revenue, and $79.45b accrued to Kuwait Petroleum Corporation. Algeria’s national oil company recorded a $39b revenue, in 2018.

With a depleted external reserve, Nigeria has been mired in a revenue crisis, which has already plunged the economy into heavy borrowing with about 91 per cent of revenue going into debt service.

ALSO READ :- Some Things You Didn’t Know About VPN

In announcing that the NNPC made a N287b Profit after Tax (PAT) in the 2020 financial audit, President Muhammadu Buhari, who is also the Minister of Petroleum Resources noted that the development was a fulfillment of an earlier pledge by the Federal Government to publicly declare the financial position of the NNPC.

Advertisement

The group’s first audited financial statement for 2018 showed that it incurred losses close to N1t. The losses in the 2019 audit report stood at N1.7b.

The Minister of State for Petroleum Resources, Timipre Sylvia, described the development as “monumental achievement,” saying that the NNPC worked hard to reach the milestones.

According to the group managing director of NNPC, Mele Kyari, the company adopted some cost cutting measures and became more efficient, after renegotiating contracts and bringing initial values down by about 30 per cent, while focusing on accountability, transparency and avoiding elusive projects.

Disclosing that the process that paved the way for the profit started in 2015 with continuous implementation of strategies, Kyari added: “It is a continuous process. When I came on board, I learnt from what was on ground, and also brought in a new perspective, which was to ensure that we build on what had been done.”

Advertisement

The GMD also added that the corporation on the heels of the COVID-19 pandemic introduced a technology that drastically cut travel cost through a reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses.
Kyari who said, “we are going to listen to the Nigerian Stock Exchange as the PIA is very clear on what will happen to the NNPC ultimately,” added that the “law did not set timeframe, but it allowed for an opportunity for shares of this company to be sold to members of the public.

“There’s the possibility of doing this, and obviously because you have profit today doesn’t mean that you are ready for IPO. It is a very long and tedious process. But that’s very possible. To become profitable, we should be open to public investment, and I’m sure all of us will be looking forward to that,” he said.

An energy expert, Prof Wunmi Iledare, who said that there were indications that the profit investment ratio is greater than zero, stressed that going forward, there is need to define the Key Performance Indicators (KPIs) for its subsidiaries.

In previous financial performances, subsidiaries such as the headquarters, refineries and others posed grave losses that marred the outlook of performing entities. The corporation had earlier said that some subsidiaries may go if they remain cost centres.

Advertisement

“I sincerely congratulate GMD Kyari for turning things around in two years, from losses to profit despite business challenges and political mines,” Iledare, who is the Chair, Ghana National Petroleum Corporation, Petroleum Commerce Research, at the University of Cape Coast Oil & Gas Studies, stated.

He added: “The way forward is to define the KPIs for the management team of the sub-business units, and continue to make cost efficiency an important component of strategy for profitability.”

Iledare is also banking on the PIA to address challenges facing the company, especially if the legislation assented to by Buhari is properly implemented to support, and sustain the current momentum.

An oil and gas lawyer, Emeka Okwuosa, who expressed shock over the profit recorded by the NNPC stressed that there was need to ascertain whether best practices were observed before arriving at the profit.

Advertisement

“I still don’t believe it is yet uhuru for the NNPC. But let’s hope it continues and the profits better applied to meet the huge infrastructural deficit, which will lead to increased employment opportunities, improved healthcare, good road infrastructure etc,” he said.
According to him, since the PIA is now in place, the NNPC will become more commercially competitive, and must become a more profitable entity with transparency and accountability as core values.

Okwousa said: “The financial profitability that we are witnessing is good riddance and further shows that the days of NNPC operating as an opaque behemoth, and a loss-making machine is gone. The passing of the PIB will further enhance this new financial discipline. We now hope that the funds are applied for the benefit of the teeming suffering masses,” he stated.

On his part, Fawibe who expressed doubt that the firm actually ran at a loss all these years added: “The owners of a company like the NNPC determine whether the company would make profit or not in the way and manner that they manage it. The question we should ask is, could it be that NNPC made profits in the previous 43 years?

“Over the years, we knew that there were lots of expenditures, lots of deductions in the finances of the NNPC that ordinarily should not have been made. These things have gone on for many years. If this expenditures and deductions are written back into the books of the NNPC, definitely there will be profit. It is a sad commentary that a corporation like the NNPC did not make profit for 43 years.”

Advertisement

Fawibe said the only reason why the corporation made profit was the way it is now being managed, adding that other viable national oil companies didn’t do anything different apart from being efficient, accountable and transparent.

He expressed fears that the profitability could be a mere flash, especially if the corporation is handed to a wrong team, and subjected to political issues, adding that the PIA could provide succour for the rebirth of the company if properly implemented.

Describing the performance as commendable, the Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, added that it was also a positive outcome of the global pressure and domestic public outcry for improved transparency and accountability in public sector governance, particularly in the extractive industry, “so it is a small victory for both the government and civil society.”
According to him, the profit is, however, not sufficient considering the actual revenue potential of the company, which as rightly put by the GMD, is expected to be a trillion naira profit company.

With the fiscal position of the economy and the growing political tension, Rafsanjani said that the government needs increased public trust and investors’ confidence, adding that the current achievement on the public side suggests not only responsiveness by the government to increased calls by civil society for improved transparency and accountability in extractive sector governance, but tangible outcomes as a result of those calls.

Advertisement

“With data rapidly becoming more available across the extractive industry, civil society, researchers, and journalists have responded by finding new ways of examining natural resource revenues, locations, production statistics and corporate filings, drawing on data, which hitherto, was only available to companies involved, or locked up in databases of proprietary data providers,” he stated.

He added that benefits from tax and royalties should provide some succour as opposed to the current and previous arrangement where it has been nothing short of a loss-making entity renowned for anomalies, undue political interference, and shades of burden.

“What then remains important is the intensified and sustained advocacy for effective implementation of public disclosure and more open data reforms that promote and entrench a culture of transparency and accountability in the extractive sector governance, from generation to allocation, and to utilisation for public benefit,” Rafsanjani said.

Advertisement

National

PROFESSOR YEMI OSINBAJO MAKES A U-TURN FROM A COLLAPSING NIGERIA TOWARDS A PROGRESSIVE NATION

Published

on

Yemi osinbajo

PROFESSOR YEMI OSINBAJO MAKES A U-TURN FROM A COLLAPSING NIGERIA TOWARDS A PROGRESSIVE NATION

There is no gain saying that the Nigerian society, its economy and wherewithal are at the thinnest verge of total collapse, the situation seems visible to the visually impaired and audible to the deaf.

 

Advertisement

The painful cry of many, the groing of the masses, the uncomfortable state of the grass root-liners, and the yelling of our women and children reaches the topest heavens.

ALSO READ:-Why Nigerian soldier kills himself after arrest

The persisting dividends of democracy so far to many have been that; Father’s becoming more incapable, lovers and families have being displaced, children- homeless, youths scattered, shattered, frustrated and lost, economy totally downturns, environment totally unsupportive and friendly to bussinesses and entrepreneurs, security architecture bridged, Justice trampled underfoot and Education which is supposed to be a weapon of enlightment in combating ignorance has become nothing to write home about. there is no one Nigerian who can lay claim of not having to enjoy his share of the above dividends. Needless at this point is to shys away from this reality which hunts us each day, anyone who isn’t in consonance with this reality is one beneath a decent human.

 

A continuation in this track can only guarantee us one thing and that is: total liquidation and complete collapse of the nation. Which is why at this moment we all need to be discerning, sensitive, get involve and keep our ears and heart steadfast to the voice of Understanding and take heed to the siren, notifying us of an emergency and the urgency to make a U-turn for yet another chance to survive through the escape way made available to us.

Advertisement

 

Dear Compatriots; scholars, leaders, Religious organisations, Youths, Artisan, traders, Men and women; beckon is made to you, that you let’s together give the nation Nigeria a chance to survive and live again; This is no right time to back off, this is no time to receive gift, this is not time to compromise, this is not time to segregate nor is it time for sentiment, every little step the majority takes have an huge impact on our futures.

 

A Clarion call is made which requires urgency and alacrity to rescue the nation, that our industries work’s again, that our Education sector lives again, that our hospitals and healthcare system works effectively again, that our youth regain confidence in the nation, that the economy and living standard of our people progresses and the attainment of such height of beautiful sociopolitical structure of the nation fills the air. families reuniting, kinsmen coming as one, great feasting and merry in the land for prevalence of justice, the citizens giving credence to the Government and high confidence placed in our Security operatives.

Advertisement

 

2023 is around the corner, really a time to make decisive choices and bare the anonymous results of whatever choice we make, going forward as our fate for the years to come (either for collapse or to progressiveness of the nation).
2022, is a preparatory year which will tell much the specimen from the choice that we will make. Hence this requires critical thinking and thoughtfulness….

 

PROFESSOR YEMI OSINBAJO AND TEAM remains the only candidate, who is honest willing, with good track record, bridled ambition, and with vision who is desperate to bring drastic changes to Nigeria.
As a politician he is one with class and exemplary leadership skill and quality. As a scholar, he is inclined and well understands relationship, interactions and rudiments of governance.

Advertisement

 

As a strategist he is calm, collected and proffering, with workable plans and scheme for economic sustainability and development etc.
As a legal practitioner with good track records, he understands the rule of law, constitutional stipulations, and of course upholds strongly the laws of the land, he will profer workable laws in the interest of the masses and permits justice served with equity.

 

As an educator he understands the importance of literacy for sustainable societal development, and the contributory roles of Education to our nation through science, technology, creativity and innovations and will encourage through right polices a Nigeria that prioritise Education .
As a bussiness man, he understands what condusive bussiness atmosphere looks like and will ensure to provide a Nigeria society where bussiness strives.

Advertisement

 

As an experienced public officer he understands the beauty of entrepreneurship and what benefit can be accrued to a nation that supports entrepreneurship through innovative Support programmes.
As an elite and one who is well exposed to the global world he understands the workings of living a life of dignity and as such will strive to bring Nigeria close to achieving its dignified pace among nations of the world.

 

He is Agile, fit, knowledgeable, experienced, ready, passionate and capable of being NIGERIA’S EXCECUTIVE PRESIDENT COME 2023.

Advertisement

 

PROFESSOR YEMI OSINBAJO IS THE U-TURN FROM A COLLAPSING NIGERIA TOWARDS A PROGRESSIVE AND LUMINATING NIGERIA. ONE THAT MYSELF AND YOURSELF WILL BE PROUD OF

Support PYO 4 NIGERIAN PRESIDENT 2023.

Written by: Henry Afolabi Victor

Advertisement

 

Continue Reading

National

2023: Prophet Olujobi Releases Fresh Prophecies About Tinubu, Okorocha, Others

Published

on

Prophet Olujobi

Prophet Bisi Olujobi, the General Overseer of Wisdom Church International, Ketu, Lagos State, has revealed a series of fresh prophecies concerning the 2023 general elections which affects the likes of Bola Tinubu, Yahaya Bello and Rochas Okorocha.

A statement he signed and made available to newsmen on Friday said the prophecies came after the thanksgiving of his 21 days annual marathon fasting.

“This is time for revenge against Tinubu,” he said, adding that Kogi State Governor, Yahaya Bello will be a force to reckon with in the forthcoming polls.

Advertisement

He said Tinubu would be seriously bedridden, according to him, “as a result of God’s vengeance”.

“Tinubu will be seriously ill to the extent that all his political cronies will abandon him.

ALSO READ :- Cyclone Batsirai kills six, displaces tens of thousands in Madagascar

“God is not happy with the man, except there is a prayer of repentance to seek God’s forgiveness,” he said.

“God silent over the years should not be taken as weakness as there is time everything.”

Advertisement

On the Kogi State Governor, he said, Yahaya Bello is a new bride to watch out for in the political landscape of the country as God is about to use the foolish things of this earth to confuse the wise.

“Bello should seek wise counsel, humble himself and hold on to see what God wants’ to do. I see him as a force to reckon with in the nearer future,” the cleric said.

Speaking on Rochas Okorocha and the others, he added, “EFCC and ICPC is going to record another landslide victory against the likes of former Governor Jonah Jang, Prof. Dibu Ojerinde, Senator Rochas Okorocha, Lucky Igbinedion and host of others whose criminal cases are hanging on their neck. “

Advertisement
Continue Reading

National

Mother Of Late Boko Haram Leader, Abubakar Shekau, Speaks After His Death

Published

on

Mother Of Late Boko Haram

Falmata Shekau, mother of former Boko Haram leader, late Abubakar Shekau, has said she regretted giving birth to him because he was a tragedy to humanity.

Empiregist News recalls that Shekau was killed in May after a clash between his men and fighters of the Islamic State West Africa Province (ISWAP).

According to data released by the state, national and international organizations, Shekau died after waging a deadly war against the Nigerian state that led to the death of over 100,000 thousand people, displacement of over three million people, and destruction of towns, villages, schools, hospitals, and other social amenities valued at over $9bn.

Advertisement
ALSO READ :- Kanye West Attacks Big Sean, John Legend

In an interview with Trust TV, the displeased mother of the terrorist group leader said he inflicted pains on her while he was alive and that they had since parted ways. She said she has no idea if he is dead or alive or whether he ever had children.

“I don’t know if he (Shekau) had any offspring. I gave birth to him and that is the only and last thing between us. Whether he is alive or not; we have parted ways. I never knew whether he had any offspring. He inflicted severe pain on me. God Almighty will judge between us in the hereafter.” she said.

 

Advertisement
Continue Reading

Hot From Empiregist

Please turn AdBlock off