The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has attributed the ₦287 billion profit after tax declared by the Corporation for the 2020 financial year to a number of pragmatic measures, including cost-cutting and none interference from any quarters.

Speaking to newsmen yesterday in Abuja, shortly after President Muhammadu Buhari had unveiled the financial performances of the Corporation and commended it for the feat, the GMD also looked at improved efficiency through business automation and emphasis on commercially-focused investments as other factors that

contributed to the turn-around of the Corporation from a loss of ₦803 billion in 2018 to profit of ₦287 billion in 2020.

Mele Kyari said that the Corporation saved a lot of cost through contract renegotiation by up to 30 percent on the heels of the Covid-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses.

He said that Management’s focus on the prioritization of investment and staff welfare also helped in boosting the Corporation’s overall productivity and bottom line.

Speaking earlier while kick-starting the press conference, the Alternate Chairman of the NNPC Board of Directors and Minister of State for Petroleum Resources, Chief Timipre Sylva, who joined the press conference virtually, congratulated the GMD, Management and staff of the Corporation on the feat of posting profit for the first time since its incorporation in 1977.

He said that NNPC’s emergence from loss into profitability, coming shortly after the signing into law of the Petroleum Industry Bill, was a proud moment for him, adding that this was a season of achievements for the nation’s oil and gas sector.

Members of the NNPC Board, Chief Pius Akinyelure, Mallam Mohammed Lawal, Dr. Tajudeen Umar and Mrs. Lami Onayi Ahmed, who were present at the event, also echoed the Minister and congratulated the Management and staff of the Corporation on the feat.

President Buhari has rolled the drum to celebrate the three positive consecutive growth of the Nigeria’s economy, especially the highest quarterly growth in GDP since 2014.

Reacting to the report of the 2021 quarter performance by the Nigerian Bureau of Statistics (NBS), in a statement today, August 26 by his spokesman, Femi Adesina, the President

commended managers of the economy for hard work and commitment, asking them to keep at it till the positive development “touches the lives and pockets of the average Nigerian.”

The President took note of the decline in real growth in the oil sector in Q2 2021, compared to a year ago, whereas oil production levels were at 1.62 million barrels per day, compared to 1.67 million barrels per day in Q2 2020.

He said that the lower production output as well as the volatility in oil prices since the beginning of the COVID-19 pandemic is responsible for the decline in performance of the oil sector.

President Buhari assured that recent reforms and efforts like the conclusion of the Marginal Fields Bid Round, the renewed focus on gas development (including the NLNG Train 7 project, and various pipeline construction projects) as well as the passage and assent to the Petroleum Industry Bill (PIB), would attract new investment to the oil and gas sector, and create conditions for more robust levels of growth in the future.

Looking to the future, the President assured Nigerians that there is much to be optimistic about, adding that the investments in agriculture and infrastructure will continue, as will on-going efforts to achieve a significant improvement in the security situation across the country.

“There is no doubt that a more secure environment – which the security agencies are working hard to achieve – will spur and energize the shoots of economic progress being seen and felt in the country.”

According to the NBS report, the Gross Domestic Product (GDP) grew by 5.01% in Q2 2021 following 0.51% growth in Q1 2021. This growth, which continues the progress of the preceding two quarters, is a continuing trend reflecting Nigeria’s economic rebound following the COVID-19-induced contractions seen in Q1 and Q2 2020.

The non-oil sector is a significant contributor to the economic performance in Q2 2021 with growth of 6.74% in real terms, the fastest growth in the sector since the third quarter of 2014. The contribution of the non-oil sector to GDP increased from 91.07% in Q2 2020 to 92.58% in Q2 2021.

The main drivers of the Q2 2021 economic growth include Trade, Information and Communication (mainly Telecommunications), Transportation, Electricity, Agriculture (Crop Production) and Manufacturing.

The service sector, specifically, recorded its strongest performance in more than a decade, growing at 9.27%.

These main growth drivers of this second quarter performance are reflective of the gains from easing restriction of movement locally and internationally, and the improvement in the business and economic environment compared to the same period in 2020.

Femi Adesina emphasized that the various policies of the Buhari administration, aimed at boosting agricultural production, improving the business environment, and investing massively in infrastructure, are beginning to yield fruit.

‘Equally gratifying is the complementary news of the steady decline in the rate of inflation, over the last few months.

“The positive effects of the Economic Sustainability Plan (ESP), which helped fast-track the country’s exit from the COVID-induced recession of 2020, continue to be evident, as some of the sectors driving the Q2 2021 growth have benefited or are benefiting from government-led interventions.

“The successful roll-out of vaccines and COVID-19 protocols has also helped to reduce pressures on the healthcare system and the need for a lockdown.”

Many flourishing industries in Kaduna in the 80’s which collapsed towards the end of the last century may return to life soon, with the signing of Memorandum of Understanding (MoU) between the Nigerian National Petroleum Corporation (NNPC) and the Kaduna State Government on utilisation and expansion of gas supply in the state.

Speaking at the signing in Kaduna today, August 26, the Group Managing Director of NNPC, Mallam Mele Kyari, confirmed the central role gas utilisation and expansion will play to the revival of most of the dead industries not only in Kaduna but also Nigeria.

“We all know that Kaduna used to be a hub when it comes to industries. It is our hope that this MoU signing will help provide the gas needed for some of those industries to come back to life,” Kyari emphasized.

He described the moment as another watershed in the Federal Government’s Decade of Gas initiative which is aimed at utilising the nation’s abundant gas resources to power the nation’s economy through a number of strategic gas expansion projects such as the ongoing OB3 and Ajaokuta-Kaduna-Kano Gas Pipeline Projects.

The event which was facilitated by the Gas Aggregation Company of Nigeria (GACN) would ensure long-term involvement and support of Kaduna State Government and key gas sector players such as the Nigerian Gas Company (NGC), the Nigerian Gas Marketing Company (NGMC) and virtual pipeline companies to provide gas supply assurance to industries within the state on competitive terms.

The NNPC boss said that the Corporation is committed to the commercialization of Nigeria’s abundant natural gas resources to support balanced economic growth and job creation across the country.

According to him, the world is transiting to low carbon energy and therefore, the nation’s huge gas resources would continue to be an important source of clean energy for today and the future.

“There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market,” he declared.

The NNPC helmsman said that the Corporation would continue to engage with stakeholders and partners to secure early market and ensure that the economic benefits of the AKK gas pipeline were maximized.

“NNPC is leading this coordinated effort with State Governments and private sector investors to develop demand framework for immediate and long-term gas supply solutions ahead of the completion of the AKK gas pipeline project.”

The GMD expressed gratitude to the Kaduna Government for hosting NNPC’s facilities such as the Refinery complex, the Depot, the ongoing AKK gas pipeline and Independent Power Plant Projects (IPPs).

Responding, Governor Nasiru el-Rufai said that Kaduna State Government is delighted with the prospect of having an additional energy source to power businesses in the state.

“We wholeheartedly welcome this project. Gas provides a cost-effective option for powering factories, homes and vehicles. For the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy.

“It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign.”

Governor el-Rufai particularly thanked the GMD NNPC and the Gas Aggregation Company of Nigeria for the gas utilization and expansion initiative and zeal displayed by to deliver the project.

“Let there be no doubt that the Kaduna State Government is committed to this MoU and the realisation of its goals in the interest of the people of Kaduna State.”

The MoU was signed by Mallam Kyari on behalf of the Corporation while the Kaduna State Governor, Mallam Nasiru el-Rufai signed on behalf of the State Government.