NNPC’s profit declaration, a function of cost management — Kyari

The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Mele Kyari, has said its posting of N287bn profit after tax in the 2020 financial year was due to effective cost management.

Kyari stated this at a press conference in Abuja where he attributed the turn-around of the Corporation from a loss of N803bn in 2018 to profit of N287bn in 2020 to the aggressive implementation of cost-cutting measures, improved efficiency through business automation, emphasis on commercially-focused investments and non-interference in the management of the Corporation from any quarters.

He added that the Corporation saved a lot of cost through contract renegotiation by up to 30% 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.

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

On his part, the 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 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 is 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 also present at the event, also echoed the Minister and congratulated the Management and staff of the Corporation on the feat.