Feature/OPED
Kyari, Breaking the Jinx, Creating Prosperity for Nigerians at New NNPCL
By Femi Aderotimi
The historic payment of interim dividend by the Nigerian National Petroleum Company Limited into the Federation Account less than three months into the stoppage of payment for fuel subsidy by the Federal Government has proven that Mallam Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPCL is indeed working for the good of Nigerians and the sustainability of the Nigerian oil and gas sector.
On July 7, 2019, when Kyari assumed the position of Group Managing Director of the now-defunct Nigerian National Petroleum Corporation (NNPC), the corporation was in a near comatose state. It was laced with many challenges ranging from grievous oil pipeline vandalism, corruption, incessant oil thefts, low production levels and lack of transparency.
For instance, a 2010 joint report by Transparency International and Revenue Watch Institute found that NNPC had the poorest transparency record out of 44 national and international energy companies examined.
These scenarios fundamentally put Kyari on the spot.
Kyari’s appointment, which, however, came as a game-changer with a clear mission – to revitalize the struggling corporation and send an unequivocal message that the corporation’s lukewarm governance narratives of the past are gone for good.
There was a lot of mess to clear, but Kyari was ready, and he came in with his sleeves rolled up, and expectedly, he didn’t disappoint.
With a vision boldly anchored on the principle of Transparency, Accountability, Performance and Excellence (TAPE), Kyari, under the defunct NNPC, demonstrated a fundamental grasp of what fossil energy means and the imperative of effective governance of the giant national oil company.
In June 2020, for the first time in 43 years, the Kyari-led NNPC released the 2018 Audited Financial Statements, and subsequently 2019, to the public for scrutiny, earning plaudits for the corporation from members of the public.
Significantly, in August 2021, the NNPC declared a N287 billion Profit After Tax (PAT) for 2020 for the first time in 44 years. Kyari’s magic wand played out as the corporation reduced its losses from N803 billion in 2018 to N1.7 billion in 2019 and the eventual declaration of a net profit in 2020. By fiscal 2021, the corporation’s profit grew to a profit level of N674 billion. Until this period, NNPC has been a loss-making entity renowned for anomalies, undue political interference, and shades of burden.
Despite the numerous challenges, Kyari grew its production to an enviable level. As at February 2023, the NNPC crossed 1.6 million barrels per day of crude oil and condensate combined.
The achievements of Kyari under the now-rested NNPC were numerous.
Amongst his other major landmark achievements was that he successfully flagged-off construction of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. The project, which is near completion and described as a game-changer, is an integral part of the Trans-Nigeria Gas Pipeline (TNGP) with a capacity to transport about 2.2 billion cubic feet of gas per day. Mallam Kyari also led the NNPCL to achieve a $300 million reduction in the cost of the AKK Gas Pipeline contract via contract renegotiation from the initial $2.8 billion.
Another of the most impressive accomplishments of Kyari’s stewardship at NNPC was the flag-off of the Kolmani Integrated Development Project in Bauchi State in November 2022, marking the commencement of efforts to commercially exploit oil in the Northern part of Nigeria. It was deemed as one of the most massive projects. The Kolmani Oil Field, estimated to have a reserve of about one billion barrels of crude oil, OPL 809 and 810, lies in the Gongola Basin of the Upper Benue Trough, straddling Bauchi and Gombe States. The project will have the capacity to transport two billion standard cubic feet of natural gas daily to power plants in Abuja, Kaduna, Kano, and various gas-based industries, boosting the nation’s socioeconomic growth.
Mallam Kyari also touched on the downstream operation of the NNPC with the introduction of Operation White, which has helped streamline petroleum products’ importation, supply, and distribution across the country.
As the then sole importer of petroleum products in the country, NNPC succeeded in keeping the nation well supplied.
The New NNPCL
Arguably, the signing of the Petroleum Industry Act (PIA) in August 2021 by former President Muhammadu Buhari was however a major breakthrough for Kyari as it opened the door for more significant changes in the national oil giant.
It is noteworthy that Kyari worked tirelessly to ensure the passage of the PIA, an initiative which is aimed at overhauling the country’s energy laws and creating a deregulated environment, freeing the oil sector from government control and unbundling the oil company.
The passage of the PIA gave birth to the new, refreshed, and rejuvenated Nigerian National Petroleum Company Limited (NNPCL).
The birth of the NNPCL in 2021 wound up the Nigerian National Petroleum Corporation, NNPC, after 46 years of operation.
The PIA empowered NNPCL to operate like every private company in Nigeria with exemption from the Fiscal Responsibility Act, Public Procurement Act and TSA in order to ensure there are no excuses for failure.
Following this milestone, Kyari, who is now the GCEO of NNPCL, initiated new investment benchmarks to further rejuvenate the once ineffective company.
At the launch of the new NNPCL, Mallam Kyari explained the ABC of the new oil company stressing that every Nigerian is a shareholder of the company.
According to him, “I’m happy to say this moment that this country is changing. And by the way, I can tell you we are the competition. We are NNPCL. We don’t create rules anymore. We are the competition.
“We will pay taxes; we will pay royalties like anyone; we will also pay dividends to our shareholders, which many of you are. So, we are in business, and business means competition. We are a private sector – forget about the fact that we are owned by the government 100 per cent.
“By the way, you are also aware; we are going Initial Public Offer (IPO) very soon, and we’ll sell a part of our equity. It’s in the law, and once that happens, we will not be any different for any of you, and it will be a very different business environment.”
In June this year, NNPCL, in a major landmark, signed four memoranda of understanding (MoUs) with five African countries as part of the Nigeria-Morocco gas pipeline (NMGP) project.
The deal was sealed with Morocco, Cote d’Ivoire, Liberia, Benin, and Guinea. The NMGP is a 5,600km gas pipeline project traversing 13 African countries. The project would create an opportunity to monetize Nigeria’s abundant hydrocarbon resources by expanding access to energy to support economic growth, industrialization, and job creation across the country and beyond. The project will contribute to accelerating access to energy for all, improving the living conditions of the Nigeria populace, integrating the economies of the sub-region, and mitigating desertification.
In a major step towards bolstering Nigeria’s energy security and promoting the utilization of its abundant gas resources, the NNPCL and UTM Offshore Limited recently signed a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous Floating LNG project.
The oil company had explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
In his resolve to put an end to the business of oil thieves, Kyari introduced the “Crude Theft Monitoring Application” (CTMA) to check the theft of Nigeria’s oil. The CTMA, which has been helpful in preventing oil theft, has application options for reporting incidents with prompt follow-up and responses. Additionally, the portal included a feature for validating crude sales documents.
Most recently, Kyari has continued to unclog the pores of the company by combating illegal refineries. His efforts at combating crude oil theft and illegal refineries were positive, leading to a significant spike in daily oil production, reaching 1.6 million barrels per day.
In the last weeks, in addition to several other breakthroughs, the NNPCL announced it busted 240 illegal refineries and pipeline vandalism in the Niger Delta region. A few weeks ago, a private security contractor engaged by the national oil company also intercepted a vessel conveying 800,000 litres of stolen crude oil at an offshore location. The vessel was heading to Cameroon. It was later destroyed.
This is, however, a testament to Kyari’s resolution to completely eradicate the business of oil thieves in the country.
All of these recent achievements and breakthroughs have stemmed from the leadership of the resilient man who is leaving no stone unturned in transforming Nigeria’s oil and gas sector via transparency, and accountability-driven policies.
Overall, the implementation of the PIA and NNPCL’s consolidation deals has set Nigeria’s oil and gas industry on a transformative path, unlocking opportunities for growth and prosperity in the sector.
Aderotimi, a public affairs commentator, wrote from FCT, Abuja
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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