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HURIWA applauds NNPCL’s transparency, accountability in 2023 financial report

Published

4 weeks ago

August 25, 2024

HURIWA applauds NNPCL’s transparency, accountability in 2023 financial report

The Human Rights Writers Association of Nigeria (HURIWA) has commended the Nigerian National Petroleum Company Limited (NNPCL) for its unprecedented display of transparency and accountability in releasing its 2023 Audited Financial Statement (AFS).

HURIWA stated that the NNPCL’s declaration of a net profit of N3.3 trillion, alongside the announcement of a N2.1 trillion dividend, marks a significant milestone in the company’s history and represents a clear departure from the opacity and inefficiency that once characterized the former Nigerian National Petroleum Corporation (NNPC).

In a statement released on Sunday, HURIWA’s National Coordinator, Comrade Emmanuel Onwubiko lauded the management of NNPCL under the leadership of the Group Managing Director, Mele Kyari, noting that the company’s impressive financial performance and commitment to openness signal a new era in Nigeria’s petroleum industry. According to HURIWA, the reborn NNPCL has demonstrated a commitment to upholding the principles of good corporate governance, a stark contrast to the previous practices that plagued the then NNPC.

The human rights group emphasized that NNPCL’s release of its audited financials, which showed a 28% increase in profit from the previous year, is a testament to the company’s resolve to operate with integrity and transparency. “This is a remarkable achievement that reflects the positive changes implemented since NNPC transitioned to NNPCL. The company’s ability to post such impressive returns amidst the challenges in the operational and economic environment is commendable,” HURIWA stated.

HURIWA highlighted that the NNPCL’s progress in financial transparency is directly linked to the leadership of Mele Kyari, who assumed the role of Group Managing Director in 2019. The organization pointed out that Kyari’s tenure has been marked by a series of transformative reforms aimed at improving the efficiency and profitability of NNPCL. “Since taking office, Mele Kyari has demonstrated an unwavering commitment to repositioning NNPCL as a transparent and accountable entity.His leadership has ushered in a new era of corporate responsibility, which has now culminated in the remarkable financial performance recorded in 2023,” HURIWA noted.

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The human rights group also praised the NNPCL Board for its role in driving the company’s success. The approval of a final dividend of N2.1 trillion by the company’s shareholders, as announced by NNPCL Board Chairman, Chief Pius Akinyelure, was described by HURIWA as a reflection of the confidence reposed in the company’s management. “The decision to declare such a substantial dividend underscores the commitment of the NNPCL Board and Management to delivering value to shareholders and contributing to Nigeria’s economic growth,” HURIWA remarked.

Furthermore, HURIWA underscored the significance of the Petroleum Industry Act (PIA) 2021 in enabling NNPCL’s transformation. The group argued that the PIA has provided the necessary framework for the company to operate more efficiently and transparently, thereby enhancing its ability to achieve sustained profitability. “The PIA 2021 has played a crucial role in creating an enabling environment for NNPCL to thrive. The Act’s provisions have empowered the company to implement strategic initiatives that have resulted in the impressive financial outcomes we are witnessing today,” HURIWA observed.

However, while commending NNPCL’s progress, HURIWA also issued a stern reminder that the company must remain vigilant in safeguarding its newfound transparency and accountability. The organization urged NNPCL to resist any attempts to revert to the practices of the past, which were characterized by corruption, inefficiency, and a lack of transparency. “NNPCL must never return to the days of the locusts, when the then NNPC was synonymous with corruption and mismanagement. The company must continue to build on its recent successes by strengthening its capacity for transparency, accountability, and operational efficiency,” HURIWA warned.

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In addition, HURIWA called on NNPCL to implement measures that will further enhance its financial reporting and governance practices. The group stressed the importance of maintaining a culture of transparency across all levels of the company’s operations, including its dealings with stakeholders and the general public. “NNPCL must ensure that its commitment to transparency and accountability is institutionalized. This requires continuous improvement in its financial reporting processes, as well as a proactive approach to engaging with stakeholders and addressing any concerns that may arise,” HURIWA advised.

The human rights group also expressed hope that NNPCL’s transparency and accountability will set a positive example for other government-owned enterprises in Nigeria. HURIWA urged other state-owned entities to emulate NNPCL’s approach to corporate governance, particularly in the areas of financial reporting and stakeholder engagement. “NNPCL has set a high standard for transparency and accountability, which other government-owned enterprises should strive to meet. We believe that adopting similar practices will contribute to the overall improvement of Nigeria’s public sector,” HURIWA concluded.

Looking ahead, HURIWA expressed confidence in NNPCL’s ability to sustain its profitability and achieve its production targets. The organization noted the company’s ambition to reach 2 million barrels per day of crude oil production by December 2024, as outlined by NNPCL’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan. HURIWA acknowledged that this goal, if achieved, would further enhance Nigeria’s energy security and economic stability.

In conclusion, HURIWA reaffirmed its support for NNPCL’s ongoing reforms and urged the company to remain committed to its principles of transparency, accountability, and operational excellence. The organization reiterated that NNPCL’s transformation is a testament to the positive impact of good leadership and sound governance, and called on all stakeholders to continue supporting the company’s efforts to build a brighter future for Nigeria’s petroleum industry.

HURIWA applauds NNPCL’s transparency, accountability in 2023 financial report

Related Topics:financial report HURIWA NNPCL

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Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG

Published

23 mins ago

September 19, 2024

Trends Admin

Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG

The National Association of Small and Medium Scale Enterprises (NASME) and financial experts have called on the Federal Government (FG) to suspend any new policy that may further impoverish Nigerians.

The unanimous call was made by respondents in separate interviews with the News Agency of Nigeria (NAN) in Ibadan on Tuesday.

The interview focused on the need to stabilise the economy as an increase in Value Added Tax (VAT) is being anticipated from 7.5 per cent to 10 per cent.

The Oyo State chairman NASME, Prince John Karunwi, said VAT, being a consumer tax, would make prices of goods and services shoot up.

According to him, the increase will deplete consumers’ purchasing power and reduce the quantity of items they can buy.

Karunwi said that the present situation had left most Nigerians without disposable income.

“The situation now is that after transportation, maybe people have little for feeding.

“If they now discover that for some certain products, the prices will go high, the demand for products that are not essential will, definitely, drop,” said the chairman.

He said the government should be patient and allow the economy to stabilise despite its drive to increase its internally generated revenue.

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An economist, Samson Olalere, said the idea to increase VAT at this point would further deepen the hardship of the common man.

According to him, people are already grumbling about the unwarranted fuel price increase and the high cost of living, as the new minimum wage increase is grossly inadequate.

He said the government should look inward and come up with ideas that would benefit the populace and reduce the hunger of common Nigerians.

“I say no to the increase in VAT. It is an abuse of the sensitivity of Nigerians,” said the economist.

Olalere wondered why the common Nigerian would be asked to sacrifice, tighten his belt, and keep faith in the government without enough consideration for him from the same government.

A financial expert, Sola Famakinwa, corroborated the opinions of others that an increase in VAT would amount to an increase in the prices of goods and services.

“There is no way the manufacturing industries would bear the cost of increased VAT; it would be passed down to the consumers.

“If what we hear about the proposed VAT increment is true, I do not think Nigerians can bear to have more burden added to their shoulders now,” Famakinwa said.

He noted that the government needed to reduce the economic hardship by introducing subsidies for necessities that directly affect Nigerians, considering that not all are government workers.

Recall that VAT was increased from 5 per cent to 7.5 per cent on Feb. 1, 2020.

However, the Presidential Committee on Fiscal Policy and Tax Reforms recently recommended an increase to 10 per cent from 2025, and to 15 per cent by 2027 or 2030.

Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG

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Nigeria positioned to lead $7.7tn halal market – Shettima

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2 hours ago

September 19, 2024

Trends Admin

Vice-President Kashim Shettima

Nigeria positioned to lead $7.7tn halal market – Shettima

Vice President Kashim Shettima has projected that Nigeria is on the path to becoming a major player in the global halal economy, which is expected to reach a market value of $7.7 trillion by 2025.

Speaking during the Halal Economy Stakeholders Engagement Programme at the banquet hall of the Presidential Villa in Abuja on Wednesday, Shettima said Nigeria’s demographic and economic size provide a strong foundation for positioning the country as a key player in the halal market.

Shettima highlighted the importance of reassessing the nation’s strengths and addressing its weaknesses to achieve this economic milestone.

He stated that the engagement with international stakeholders will help develop a comprehensive halal ecosystem and strategies that will allow Nigeria to tap into high-value global markets.

He praised the private sector for its contributions, especially in the financial sector, and called for further collaboration to deliver a robust halal economy.

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He also urged stakeholders to support the administration of President Bola Ahmed Tinubu in creating a thriving halal ecosystem.

Shettima further noted the importance of attracting international investment through summits, roadshows, and business matchmaking events, emphasising that regional trade expansion via the African Continental Free Trade Area (AfCFTA) offers Nigeria a platform to become a leading supplier of halal goods and services across Africa.

Aliyu Bunu Sheriff, the Special Assistant to the President on Export Expansion, highlighted the economic potential of the halal sector.

He explained that increasing Nigeria’s halal exports to countries in the Organisation of Islamic Cooperation (OIC) from 2% to 6% over the next four years could boost the country’s GDP by $548 million.

Senator Abubakar Kyari, Minister of Agriculture and Food Security, provided key statistics, noting that Nigeria’s domestic spending on halal products and services was approximately $107 billion in 2022.

Nigeria positioned to lead $7.7tn halal market – Shettima

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Fresh trouble over supply volume in Dangote refinery petrol

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Fresh trouble over supply volume in Dangote refinery petrol

LAGOS — More controversy has emerged in the execution of a sale-purchase deal on premium motor spirit, otherwise known as petrol, between the Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery.