Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, has disclosed that the administration of the Federal Minister for Petroleum Resources, President Muhammadu Buhari, in 2018, became the first to publish NNPC’s audited financial statements since its establishment 43 years ago. The NNPC was established in April 1977, when same Muhammadu Buhari was the Federal Commissioner for Petroleum & Natural Resources and later Chairman of the newly established NNPC under the military administration of Olusegun Obasanjo. The criticism that followed the audit report of 2018, according to Kyari, helped the Corporation to cut down its losses in pipeline business and refinery operations by as much as 97 per cent in 2019.
Addressing the press yesterday, Kyari said: “NNPC has never published its audited financial statement in 43 years. We came and started doing that and released the 2018 financial statement. We were not afraid of doing that and there were a lot of criticisms that we lost money in refinery operations and pipeline business.”
“We went ahead and published the 2019 audited report and were able to learn and cut cost and became more efficient. There is no company in the country which has cut its losses within one financial year by ₦800 billion. We have improved efficiency by cutting 97% in our losses.”
“These are truly difficult times for our Industry. But I am proud to say that we were able to maintain our obligations to the Federation Account for seven months without any fail despite the huge impact of the COVID-19 pandemic on the oil and gas industry,” He concluded.
Source and pictures credit: The NNPC Group