NNPC makes N18.4bn profits in first quarter of 2023 — Kyari

The Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company (NNPC) Ltd., Mr Mele Kyari, said on Friday that the company, through its retail outlets, has made a profit of N18.4 billion in the first quarters of the year

Kyari disclosed this at the resumed investigative hearing of the House of Representatives Ad hoc committee on the acquisition of OVH Energy by NNPCLtd
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According to him, “In the first quarter of 2023, we made N18.4 billion in profit, and before we acquired OVH, we couldn’t make it.

Kyari, who explained that before now, the NNPC Ltd. struggled to control 15 per cent of OVH, declared that the narration had changed as the company is now in control of 30 per cent of it

Kyari also said that the company now has over 900 fuel stations spread across the country while controlling about 30 per cent of the market in the downstream sector of the petroleum industry.

This came just as he debunked the speculations making the rounds that the Corporate Headquarters of the Company in the Federal Capital Territory, FCT Abuja, is being relocated to Lagos.

Kyari, who apologised for his inability to appear physically before the Committee during the last hearing due to pressing official engagement, explained that contrary to the petition by petitioners on the alleged relocation of the Headquarters to Lagos, the company had no plan of moving its headquarters to Lagos, adding that this was in spite of its present status as a private company registered with the Corporate Affairs Commission, CAC.

He pointed out that the speculations might not be unconnected with the fact that 70 per cent of its operations were in Lagos, adding that moving the headquarters would incur additional costs for the company, saying that the NNPC Ltd. had merged its operations and moved the right people where they were required to function.

According to him, the registered Headquarters of NNPC Ltd. is in Abuja; the mere fact that the GCEO sits with the operations staff does not mean it has moved to Lagos; those making the allegation were doing so because they don’t want to move; this is the challenge of mergers and acquisitions all over the world. We have given them the option to resign.

“The company cannot keep them where they are not needed; this is what the petitions are all about. As a registered Company with the Corporate Affairs Commission with the Headquarters based in Abuja, to move out, you have to go back to the CAC about the relocation We have not done that and we are not planning to do that.”

While noting that in every merger and acquisition, the dominant culture must be allowed to take over, such as service, which was exactly what the NNPC Ltd. was doing, Kyari said, “Merger and acquisition comes with challenges, but we are minimising the impact; we have to make the business happen. We are doing everything possible to ensure that it has no negative impact, and we will ensure it creates value.”.

Speaking on the need to retain expatriates, he said there was no national oil company of limited liability that does not have expatriates, adding that it took him many days of engagement to make the expatriates stay.

According to him, We don’t have the capability, and there is no way we can progress without the inclusion of people who can create values.

Kyari explained that the NNPC Ltd. needed to be the national oil company that people could deal with, adding that international partners always looked at inclusion, and the NNPC must get expatriates to live and work with it.

He, however, stated that Nigerians must learn to thank him for a job well done, saying, “I must say that this country should thank me, and I say that without reservation.

We started NNPC Retail Limited in the year 2000, and until the acquisition of the OVH chain, we were not able to grow organically.

We only had 48 stations that we owned and a mirage of companies that are affiliates all over the country, some of which were not functional fuel stations; they could not serve the purpose because there were dealers who could not pay for the cost of the products, and we had locations where we could not guarantee either the quantity or quality of the products sold.

“We failed to grow organically for 23 years. The only way to bridge that gap is to do something strategic, and this is very difficult in our industry.

You have to acquire other people’s assets if you want to grow to achieve the objective of the PIA and grow this company into the business we want it to be.

“The corporation has been a loss-making corporation for many years. With the transformation that came into the company before and after the PIA, this company is now a net-profit company, declaring profit for its shareholders.

“We saw the opportunity to acquire this asset and add it to our portfolio so that we can meet the requirements of the law.

Right now, we are in control of 30 per cent of the market downstream from this acquisition. No company will come to the public to announce that it is selling the company, except by auction or acquisition.

Speaking, the Chairman of the committee, Hon Hassan Na’laraba, Commended Kyari for coming around to clear the air about the operations of the company, saying that he could be re-invited for further clarifications as the committee still had a week to submit its report.

Also speaking, the Speaker of the House of Representatives, Hon Tajudeen Abbas, who was represented by the House Leader, Hon Julius Ihonvbare, declared that the Committee was not set up to witch hunt any individual or organisation but to carry out the assignment in the national interest and expressed total confidence in the members of the Committee to deliver the goods in the overall interest of the nation

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