All eyes are now on Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Male Kolo Kyari in turning around the fortunes of the Corporation and also need to make the company to be runs in very transparent ways. In view the challenges before him in whirling the NNPC to practice the best norm in the world oil industries. There is need for Kyari, to focus his attention on the implementation of the findings of the audit reports of the NEITIwhich has severally indicted the NNPC of operational maleficence. Nigerians were expected see that his nicked mane of Mr. Transparent really translated into the way he will tackle on poor transactional transparency, as NNPC had over time recorded differences in actual volume of crude oil lifted and actual volume of production NEITI stated.
A recent World Bank report had shown that Nigeria spent N731 billion to subsidizes petrol consumption last year. The report had explained that within the year under review, Nigeria’s oil sector declined in productivity, ending on 1.9 million barrels a day (mbd) production mark as against the government’s hope of 2.3mbd.
In April 2019, Revenue Watch Institute (RWI) in its publicationof National Oil Company Database, place NNPC as one of National Oil Companies (NOCs) with record challenges of transparency. There is need for Kyari to initiate a see-through process in management of the corporation’s operations and also making it more profitable. It’s hardly and even became part of NNPC tradition not disclosed its net income from core revenues; capital and operational expenditures; cash flows from operations; total assets worth to public.
Saudi owned of National Oil Company ARAMCO raked in profits of £85 billion in 2018 as most profitable company making more than Apple and Google combine. Aramco raked in more cash than global ITC giant companies, Apple made roughly $60 billion, while Exxon Mobil made roughly $20 billion). The Wall Street Journal reported. ARAMCO revealed details of its finances for the first time since it was nationalized in the Seventies as part of a push ahead of its first bond sale.
Nigerians expected to see Kyari turning around the fortunes of NNPC into rakes profitable national oil company through openness, transparency and accountability. Establish a concrete economic
Diversification plan with a concrete path to a post-oil future for Nigeria, based on emerging global trends.
This plan, akin to the Saudi Arabian government’s economic diversification plan, should include a clear strategy with interlinked policies – trade, industrial, fiscal – and far-reaching structural and governance reforms of the Nigerian National Petroleum Corporation that could include partial privatization (with share listed on the stock exchange for purchase by ordinary Nigerians and not by Government- Related cronies).
The uncanny tasks before GMD are to turn around the nation’s nation feeble refineries remained terribly poor in operation and mostly constituted a deficit to NNPC cash flow. This decades problems placed the NNPC as a mere trader in the oil industry as against its potentials as a national oil company capable of establishing and running profitable ventures in the Upstream and Downstream sectors of the industry. Finding a lasting solution would in many ways be a plus to Kyari and his team. Nigerian National Petroleum Corporation recorded losses in the region of N551.46bn between January 2015 and December 2018. The Corporation repeatedly failed to meet projected profits as its subsidiaries, particularly refineries, running cost at the headquarters and other arms left whopping deficits.
Things you need to know about Kyari
Male Kolo Kyari was appointed to head production sharing contracts management in the Crude Oil Marketing Division (COMD). Also led the team that proposed and managed the Direct Sales And Direct Purchase (DSDP) arrangement of petroleum products from 2016 till date replacing the Crude Swap Arrangement. Under his watch, the Crude Oil Marketing Division has recorded noticeable transformation in the management and sales of the various Nigeria’s crude oil grades via an infusion of transparency and automation of the processes.
He contributed to reconcile alleged loss of $48 billion and established actual status of transactions involving NNPC in 2014. Malam Kolo Kyari pursued the determination of the tenure of the Amenam/Kpono carry arrangement with potential savings of over $1 billion; he also revised and initiated the process for the redetermination of the Applicable Fiscal Regime for the Addax PSC with potential short
term savings of $1.6 billion. As the group general manager, crude oil marketing division. He created systems to ensure maximum transparency and accountability of crude oil and gas sales in the industry. He was the supervisor of production sharing contract for the NNPC.
Mr. Transparent’ he was one of the major people that came up with the NNPC’s commodity trading initiative. This initiative makes it possible for the government to know those who are buying the country’s crude and at what prices, and how much has been made. Kyari led various teams in developing the petroleum industry bill (PIB) that redefined the government’s take in production sharing contracts with oil companies. He was the secretary of the FG INTER-AGENCY team that coordinated the creation of the current basis of the fiscal and regulatory framework of the PIB.
He is unionists, per excellent and he is fearless toward welfare of his follows members and Kyari popularly called ‘Grand Chairman or Mr Transparency by other comrades in the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) often refer to him as a comrade after he was group chairman of NNPC PENGASSAN.
Male Kolo Kyari won four awards, namely: GMD Prize for the Overall Best Performance for NNPC Management Development Program; GED CS Award for Best Performance in Leadership; GM Group Learning Division award for Best Project work, NNPC Management Development Programme; and Examiners award for 1st Runner-up for Effective Presentation.
Dukawa a public commentator and can be reached email@example.com
The views expressed in this article are the author’s own and do not necessarily reflect the editorial policy of Sky Daily