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  • Nigeria to increase crude oil production to 3mb/d, says Kyari

    Nigeria to increase crude oil production to 3mb/d, says Kyari

    The Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Malam Mele Kyari has informed that the country plans to raise crude oil production which now hovers around 1.6million barrels per day to 3mb/d.

    He added that the plan includes increasing the nation’s refining capacity to over 1mbpd.

    According to him, it includes expanding NNPCL Retail outlets to over 1,500 stations across sub-Saharan Africa.

    Kyari said in the period in sight, the state – owned company will grow its renewable energy portfolio and optimise payment of dividends to shareholders.

    The NNPCL boss made these known during the 2024 Women in Energy ,Oil and Gas (WEOG) Leadership Summit in Abuja.

    The theme was: “Closing energy gaps in Nigeria by investing in women.”

    Read Also: Power sector worse off 12 years after privatisation – NLC

    He said: “Looking ahead to the next decade, we envision a Nigeria propelled by the oil and gas industry: monetization of our vast 203 Tcf gas resources, increasing crude oil production to 3 mbpd, raising domestic refining capacity to over 1 mbpd, expanding our retail network to over 1,500 stations across sub-Saharan Africa, growing our renewable energy portfolio, and optimizing dividend pay-outs to shareholders.”

    The Chief Group Executive Officer said NNPCL goals are audacious and accomplishing them requires a multifaceted approach.

    One of the most powerful strategies at the company ‘s disposal is investing in women.

    According to him, women constitute a substantial portion of Nigeria’s population and workforce, yet they remain underrepresented in the energy sector.

    Kyari said as “at Q4 2023, women represented 18.6% of our total workforce and 23.1% of our leadership.

    ” This is largely attributed to the low level of participation in Science, Technology, Engineering and Mathematics fields which is the major channel for our work force in the oil and gas industry.

    “Studies have also shown that at the middle of the technical talent pipeline (which is middle to senior management levels), there is lagging progress for women which is greatly impacted by the degree of flexibility of work.”

    He said at NNPC, the company has evaluated the challenges faced by women across different levels of our workforce and taken additional steps to address those.

    He added that NNPCL focuses on several key strategic initiatives.

    According to him, from coaching and mentoring to ensure our managers are effective leaders; to unlocking the full potential of flexible work.

    Kyari said by empowering women and providing them with equal opportunities, NNPCL can unlock immense potential and drive meaningful change across the energy landscape.

  • NNPCL listing ‘within sight’, says Kyari

    NNPCL listing ‘within sight’, says Kyari

    Nigerians will soon have opportunity to be co-owners of the Nigerian National Petroleum Company Limited (NNPCL).

    Group Managing  Director,  Nigerian National Petroleum Company Limited (NNPCL), Mallam Mele Kyari said the anticipated listing of the NNPCL on the Nigerian Exchange (NGX) is within sight.

    He explained that the Petroleum Industry Act (PIA) had set out a pathway for the transformation of the company to a publicly quoted commercial company with opportunity for the general investing public.

    According to him, the PIA has created opportunity for general investing public in the company.

    He said that “at maturity, this company’s shares will be owned by others”

    “The law anticipates three years of incorporation of the company. You can start the process and therefore, it is within sight,” Kyari said.

    Read Also: Kyari: NNPCL can never declare loss again

    He noted that  NNPCL has moved away from a government-owned corporation to a limited liability company that is now commercial and profit-making.

    “Today, the shareholders are largely the overall population of the country, very understandable, but it’s transiting to a situation where you can have other people owning interest in the company. What we did was to create a company that must pay taxes, pay royalties and also at the end, is able to provide dividends to its shareholders.

    “This is clearly not a money-losing business, and the oil and gas industry in Nigeria has matured to the extent that any company operating, not just us, can actually break even and make benefits.

    “Therefore, what really happened today is that you have a national oil company that is commercial, which has progressed from a loss-making company to now a profit-making company that is not just providing dividends to its shareholders.

    “It is creating value to its stakeholders and its partners, including some international oil companies and some local oil companies in a manner that is beneficial,” Kyari said.

    Kyari spoke at 2024 CERAWEEK in Houston, United States.

  • Why NNPCL can’t declare loss again, by Kyari

    Why NNPCL can’t declare loss again, by Kyari

    • …says importation of Petroleum stops in 2024

    The Nigerian National Petroleum Company Limited (NNPCL) will never declare loss again because the Petroleum Industry Act (PIA) has spent it out.

    Its Group Chief Executive Officer, Malam Mele Kyari made the vow in Abuja while speaking as the chairman of the launch of books authored by the NNPCL former Chief Executive Officer, Prof. Billy Okoye.

    The NNPCL Chief Financial Officer, Alhaji Umar Aja, who represented Kyari recommended the books which among other things capture the turbulence and struggles the NNPCL management has been going through to supply Nigerians the Premium Motor Spirit (PMS) to fuel their vehicles to both international and local readers.

    He described the task as a difficult one that the NNPCL must accomplish in line with the Petroleum Industry Act (PIA).

    He lamented that whatever losses the company made in the past was nobody’s business but the Act has made it mandatory that the company must make profit directly into the federation account.

    The NNPCL boss insisted that with the mandate, the oil firm can never declare loss to Nigerians again.

    “We recommend these books not only to Nigerians but also to the international community so that they can learn from what Nigerians have gone through, and the struggles and the turbulence, the past and present managements of NNPC has been going through and is going through just to keep your vehicles on the road. 

    “It is not an easy task. But it is a task which has been obligated on that company, especially now courtesy of the Petroleum Industry Act. 

    “Whatever we did as profit or loss in the past, is nobody’s business. But the Act has simply made it possible now that we can do it, but on the account of the federation. So we can never declare loss to Nigerians,” said Kyari.

    He described the declaration as  the commitment that the NNPC Chief Executive, Board, management and staff of NNPC have made to Nigerians.

    He stressed that “we are equal to the task.”

    The NNPCL boss explained that Okoye had in his remarks described the company as the one that has evolved into a profit making organization because of the fact that it is no longer capable of making losses.

    Read Also: Kyari: NNPCL can never declare loss again

    He added that from mere upstream development, the company has also moved into refining of crude oil and downstream activities.

    He also vowed that gone are the days the state-owned oil firm was exporting crude oil and importing refined products.

    According to him, that trajectory will come to an end this year as Nigeria will consume its locally refined Premium Motor Spirit (PMS).

    His words: “The chief host has alluded to the inefficiencies of the past of where we were literally sending crude outside and importing PMS.

    “That has trajectory will change this year. And Nigerians will not be buying petroleum products refined abroad but petroleum products refined locally.”

    The NNPCL boss comment was also in response to the Chief Host, University of Abuja Vice Chancellor, Prof. Na’ Allah, who lamented that there were stories that Nigeria cannot refine its crude oil.

    Kyari however returned from the National Assembly to the launch to also speak for himself.

    He described the crude oil trade as 24 hours business, which moves on no matter which producer shuts down.

    He said: “By now the London market is closed and I am sure New York is just starting. I am sure by the time New York closes, we also know that Singapore will open. So it is 24 hours business.”

    According to him, not many people with interaction with the market will waste their time to document issues that affect everyone.

    He commended Okoye ‘s passion to document his knowledge in the industry and also transfers it to others.

    In his keynote address, Okoye commended the NNPCL for his achievements after his retirement, noting that the firm has now added to one grade to the 35 crude oil grades Nigeria used to have.

    “We have 36 grades of Nigerian crude oil,” he said.

    The two books that were launched were “Dynamics of Petroleum Products Marketing” and “Insight into Crude Oil Marketing.”

    Other dignitaries present at the well attended launch were the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Chief Executive Officer, Engr. Farouk Ahmed; Emadeb Energy Ltd, Group Managing Director, Mr. Debo Olujimi and others.

  • Kyari: NNPCL can never declare loss again

    Kyari: NNPCL can never declare loss again

    • ‘Port Harcourt refinery to resume production in two weeks’

    The Nigerian National Petroleum Company Limited (NNPCL) will never declare loss again, according to the Group Chief Executive Officer, Malam Mele Kyari.

    He gave the promise in Abuja while speaking as the chairman of the launch of books authored by the NNPCL former Chief Executive Officer, Prof. Billy Okoye.

    Kyari also assured that the Port Harcourt refinery would begin production by the end of March.

    He gave the assurance after a meeting with the Senate Ad-hoc Committee, investigating the various Turn Around Maintenance (TAM) projects of Nigerian refineries.

     “In the next two weeks, production will start, we did mechanical completion of Port Harcourt, that was what we said in Dec 2023.

     “That means we are done with our rehabilitation work, now you are to test if this completion is okay,” he said

    On the Warri refinery, Kyari said mechanical works had been completed, adding that the facility was undergoing the regulatory compliance processes.

    Read Also: Tinubu appoints Alabo George as BCDA DG

    He, however, said Kaduna would not be ready until December.

    Kyari said all the crude lines were active, adding that over 450,000 barrels had been delivered into the Port Harcourt refinery.

     “Yes, there may be security issues, but also the government is responding to the situation.

     “We are happy to work with the committee and promise not to hide anything from them,” Kyari said.

    Chairman of the Ad-hoc Committee, Sen. Ifeanyi Uba (APC -Anambra), said the committee was satisfied with the information from NNPCL.

    Ubah said the committee had an understanding of when to go for oversight function of the refineries.

  • Reps query NNPCL boss, Kyari over $278.185m unremitted revenue

    Reps query NNPCL boss, Kyari over $278.185m unremitted revenue

    The House of Representatives has queried the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) over the non-remittance of an outstanding sum of $278,184,937.72 from the transfer of OML 24 in 2019.

    According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) records, OML 24 was transferred to
NNPCL/Nigeria Export Processing Council (NEPC) in 2019 for a Signature Bonus of $309,094,374.72 of which only $30,909,437 has been paid.

    This, it said, left an outstanding of $278,184,937.72 due to government from the NNPC/NEPL.

    The GCEO of the NNPCL Mele Kyari painted a gloomy picture of the country’s oil and gas industry.

    Read Also: Ningi’s suspension: What I would have done if I was presiding officer – Abaribe

    He said: “We understand very clearly that our national revenue is the premised on the oil and gas industry. It’s very crucial that this industry gets all the focus that it deserves and is necessary. We also understand that every other sector of the economy are clearly tied to the functionality and performance of the oil and gas, including other taxes that are collected by government like value added tax and so on. Many of them are clearly related to the performance of our industry.

    “It is very typical anywhere in the world, the first line of deduction from any revenue is your cost, otherwise there will not be another revenue for you to deduct from.

    “And that means you have to continuously invest so that you’ll continue to make more money beyond the investment that you’re making. This is the only way that you can grow. I also confirm that we have a very very peculiar industry and it’s very clear that we are one of the most expensive production environment anywhere in the world.

    “This is also very true and there can be lamentations on why this is so, but we also face the issue. First of all, today, there’s nowhere in the world where people have inserted over 5,000 illegal collections into your production line. In it doesn’t happen anywhere, it’s nobody’s experience, it doesn’t happen any part of the world.

    “Today, we have destroyed over 6,000 illegal refineries that are tapping crude oil from our production. This doesn’t happen anywhere in the world and nobody can factor it into the process. Once you create this situation of uncertainty, which by the way is not new.”

    He said the country has huge security risk that is stopping it from maximizing production and also declining investment in the industry.
    Chairman, House Committee on Finance, Hon. James Faleke expressed concern about the cost of crude oil production and its impact on government revenue.

    He said the transfer of the assets reduces the amount of oil accruable to the Federation.

  • Kyari seeks swift implementation of tractor agreements

    Kyari seeks swift implementation of tractor agreements

    Ahead of the wet season farming, the Minister of Agriculture and Food Security, Abubakar Kyari has called for an immediate implementation of the tractor agreements reached with John Deere.

    It would be recalled that federal government, in November 2023 had signed a Memorandum of Understanding (MoU) with John Deere for the establishment of a tractor plant in Nigeria.

    The  tractor manufacturing company is expected to produce a minimum of 2,000 tractors per year for five years.

    Speaking at a technical meeting with John Deere group on mechanisation yesterday, Kyari, who decried setbacks in project delivery, said the country is supposed to have received at least 500 tractors this month, if it was to meet up with the 2,000 pieces expected by the end of the year 2024.

    The minister noted that Nigeria, with about 35 million hectares of arable land requires at least 70,000 tractors to ensure mechanised farming.

     He stressed the need for efforts to be fast-tracked to ensure delivery of the tractors ahead of the wet season farming.

    Kyari noted that there is a need to quickly see the effect of the tractors for the benefit of farmers and the country at large.

     “The only concern that I have, and we have here at the ministry, is that there seems to be a slow pace in some of the concepts that we have lined out.

    Read Also: Time has preserved Awo’s principles, legacies – Tinubu

    “We’re in the third month of 2024, and we have assured Nigerians that we’ll have 2,000 in the year 2024.

    “If we’re in the third month, we should have 500 tractors now on the ground. But here we are, we are a bit stuck in the mud, and we want to run away from all the problems that we have envisaged in the past”, Kyari said.

     Also, the managing director of John Deere,

    Stephan Gouws, said that access to finance and sub-optimal has been the challenge confronting them.

     He noted that the goal of the company was to increase yield and profitability through the deployment of technology and training programs for farmers.

    “The aim is for mechanisation for higher yields. So the challenge that we see is that the yields are there but it’s sub-optimal”, he said.

  • Kyari seeks support to stamp out input racketeering

    Kyari seeks support to stamp out input racketeering

    The Minister of Agriculture and Food Security, Senator Abubakar Kyari has called on the Niger State government to collaborate with the federal government to stamp out farm inputs racketeering to ensure interventions get to the real farmers.

    Kyari made the call in Abuja while playing host to the Niger State Governor, Mohammed Bago.

    He said the call became necessary as the ministry is dedicated to implementing stringent measures in the forthcoming dry and wet season farming for rice, maize, and cassava, to ensure transparent distribution of agro-inputs and targeting genuine farmers. The minister added that the state has assumed an enviable forefront position in the Renewed Hope for Food Security Agenda of President Bola  Tinubu.

    “It is a fact that the agricultural sector in Niger State has witnessed outstanding accomplishments since the inception of your administration.

    “Already, Niger State rolled out agricultural input support to farmers including the dry season farming launched some days ago, distribution of assorted fertilizer to farmers across the local government in the state.

    Read Also: Ondo public servants accuse Ayedatiwa of extravagant spending

    “Consistent with these trajectories, it can be said for a fact that Niger has assumed an enviable Forefront Position in the Renewed Hope for Food Security Agenda of President Bola  Tinubu”, he said.

    In his remarks, Niger State Governor, Mohammed  Bago, said the state government is working effortlessly to ensure genuine farmers are benefiting from all government interventions as Nigerians have no other way to go than to go the way of agriculture.

    Bago said farm inputs like seedlings, fertiliser and pesticides get to the real farmers.

    He added that the state government has access to the real farmers as they have their accurate register.

    “The new register for farmers is accurate and we have direct access to these farmers and whatever we take to the farm gets to the farmers directly,” he added.

    Bago however said Niger state has offered itself as a pilot state for agricultural development in Nigeria.

    He said his administration had moved away from the archaic method in farming as sophisticated technology had been introduced.

  • CDDI hails NNPCL’s reforms, performance under Kyari

    CDDI hails NNPCL’s reforms, performance under Kyari

    The Permanent Representative of the Centre for Convention on Democratic Integrity (CDDI) to the ECOSOC-United Nations and  Chairman of the Civil Society Policy Forum of World Bank/ African  Countries Caucus, Comrade Olufemi Aduwo, has extolled the growth recorded by the Group Chief Executive Officer, Nigerian National Petroleum Corporation Limited (NNPCL), Mallam Mele Kyari.

    According to him, the Civil Society Policy Forum of the World Bank is impressed by the rapid economic development within NNPCL under the current management, submitting that it is amazing that NNPCL has accomplished an impressive reform journey within the few years that Kyari became the GCEO.

    Aduwo, in a statement, explained Nigeria should not forget in a hurry the relentless efforts of Mallam Kyari that culminated in the successful passage of the Petroleum Industry Act 2021. 

    He pointed out that undoubtedly, the efforts of Mallam Kyari has resulted in a new, refreshed, and rejuvenated NNPCL. 

    He said Kyari has gone a step further to initiate new investment benchmarks to further rejuvenate the once ineffective company. He stressed that Nigeria’s oil and gas industry is now on a transformative path, unlocking opportunities for growth and prosperity in the sector.

    Aduwo expressed optimism in the future of NNPCL if Mallam Kyari could achieve so much upon becoming the GCEO at a turbulent period characterised by low production, burgeoning vandalisation of oil pipelines, and oil theft on a grand scale. 

    Within the spate of four years of becoming the GCEO, the story changed dramatically. In a bid to optimise and reduce overhead costs, a couple of NNPCL  subsidiaries were merged and others were optimised for better operability and profitability. President Tinubu should adopt  Kyari’s formula and merge some government agencies and parasatals for better performance.

    He commended Kyari, saying that the 2018 NNPC loss profile of  N803bn was reduced  to N1.7bn under the 2019 Kyari-led NNPC as GMD/GCEO, maintaining that with his eventual declaration of net profit in year 2020 for the first time in the 44-year history of NNPC.”In addition, the same feat was recorded in 2021 and 2022: the company declared  2.5trillion naira as profit.

    “Moreover, the company has, under Kyari, taken significant steps towards enhancing transparency and accountability in the industry. One of the ways he has done this is by publishing monthly financial and operational reports. Before now, the financial statements of NNPC has been shrouded in some level of opacity. So, for us to start having financial statements from NNPC, we think it is a good development, especially now that it is transforming into a limited company,” he said.

    Read Also: Stop blackmailing Kyari, Coalition warns

    He added: “More than the above, the NNPCL’s $3.3 billion crude oil pre-payment loan it signed with the African Export-Import should be applauded rather than be condemned by ill-informed politicians and non-state actors.”

    “ln simple terms,NNPC Limited agrees to sell a predetermined quantity of future barrels of crude oil production in advance while securing upfront payment from a special purpose vehicle (SPV) backed by international financial institutions.

    “The forward sale of oil, would ultimately provide dollar financing to the federal government,” he averred.He advised that such laudable financial arrangement should not have generated any controversy and negative comments rather Kyari should be commended.”

  • Stop blackmailing Kyari, Coalition warns

    Stop blackmailing Kyari, Coalition warns

    A coalition of Civil Society Organizations (CSOs) has urged the Department of State Service (DSS) and the police to take action against those blackmailing the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari.

    Speaking at a press conference in Lagos, the leader of the coalition, Declan Ihekaire, said the allegations against Kyari and the NNPCL have been investigated by the National Assembly and that the lawmakers have cleared the him of any wrongdoing.

    The coalition condemned the blackmailers for engaging in a relentless campaign from other government agencies and corporate institutions.

    Ihekaire said: “The National Assembly that is saddled with legitimate investigations of all MDAs has investigated the phantom missing 48 million barrels of crude oil that only exists in the blackmailer’s imagination. After thorough investigation, none of such happened.

    “After the National Assembly dismissed the petition and cleared NNPCL of such lies, they ran to the court.

    “These actions have raised serious ethical and legal concerns within our society. The continuous attempts to blackmail and extort NNPCL and other government agencies, not only undermine the rule of law, but also compromise the integrity of our institutions.

    “We stand firmly against any form of corruption or misconduct within public and private institutions. However, the appropriate channels for addressing such concerns are through established legal processes, not through coercion, blackmail, or extortion.”

    The coalition said in accordance with the principles of due process and the rule of law, citizens, regardless of their status or affiliation, are entitled to a fair and just legal proceeding.

    Read Also: Senate gives Kyari, NUPRC boss 24 hours to appear for defence

    The groups said citizens should trust and have confidence in the legal institutions instead of trying to subvert the due process through blackmail. 

    Ihekaire added: “The court is the appropriate forum to address the concerns raised, and we trust that justice will be served in accordance with established legal norms.

    “The public should remain vigilant and discerning when faced with sensationalist claims or attempts to manipulate public opinion. It is our collective responsibility to uphold the principles of justice, fairness, and due process.

    “We condemn the serial blackmail and extortion attempts against NNPCL and we reiterate our commitment to the rule of law and due process, and we call on all stakeholders to support the proper legal channels to address any concerns within our society.

    “If this persists, we shall not hesitate to engage further legitimate steps, in putting an end to the shenanigans of the blackmailers. 

    “Indeed, we will be submitting a petition to the SSS against them.”

  • Group hails Kyari’s reappointment as NNPCL boss

    Group hails Kyari’s reappointment as NNPCL boss

    A group known as the Forum of former and serving lawmakers in Nigeria has hailed the reappointment of Mele Kyari as the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) by President Bola Tinubu.

    The Forum, in a letter of appreciation to the President signed by its National President, Hon. Yemi Alli, the appointment is well deserved and an indication the desire to bring about an economic turnaround in the downstream oil sector.

    Alli said that Kyari has enthroned transparency and accountable in the oil and gas sector.

    He added that his impressive ideas and knowledge have brought massive improvement.

    Alli said: “Mr. President Sir, many of us are happy with this appointment because the GCEO has demonstrated commitment to drive revenue growth and fortify the resilience of the economy in the Petroleum industry.

    “Before his appointment, Nigeria fell far below their OPEC quota of crude oil production for over eight years. But the award of pipeline surveillance contract to Tantita pipeline security outfit, owned and controlled by Tompolo, has caused over 70% of the oil criminals in the Niger Delta region to quit operations.

    “This has increased the number of barrels produced per day (bpd), giving Nigeria a huge boost to be able to meet her OPEC quota.

    “Apart from recording profits for the company, Kyari has also led the NNPCL to resolve age-old disputes with its business partners, notably the International Oil Companies (IOCs).

    “The Kyari-led NNPCL also paid Nigeria’s joint venture cash call arrears to the IOCs totaling $5.1Billion. This was made possible through the introduction of the Alternative Funding Approach (AFA), which replaced the erstwhile cash call payment.

    “The AFA model has allowed for the utilization of NNPCL’s to finance its share of joint venture operations, thereby reducing the country’s reliance on external borrowing and increasing the flow of investment into the industry.”

    The group expressed its support for the President and his administration.