NUJ To NNPC GMD: Your Drive For Transparency, Accountability Has Spurred Investors’ Confidence In Oil & Gas Industry

The Nigeria Union of Journalists on Friday said that the drive by the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari for transparency and accountability has spurred investors’ confidence in the oil and gas industry.

The President of NUJ, Mr. Chris Isiguzo said this when he led a delegation of the Union on a courtesy visit to the NNPC GMD in Abuja.

He was accompanied by Shuaibu Usman Leman (National Secretary); Dele Atunbi (National Treasurer); Ladi Bala (National Chairperson, NAWOJ; Emmanuel Ogbeche (Chairman of Council NUJ FCT);
Ochiaka Ugwu (Secretary, NUJ FCT); Amos Dunia; Tita Nzeh (Programs Officer, NUJ National).

The NUJ President commended the GMD and senior management of the NNPC for yet another opportunity to meet and hold conversation on developments in the oil and gas industry.

He explained that for a long time, the oil and gas sector was steeped in opaqueness and non-disclosures a development that has led to widespread speculations and agitations about the operations of the Corporation.

However, he expressed satisfaction that there is currently high level of transparency and accountability at the NNPC.

Specifically, the NUJ President stated that the NNPC, under the leadership of Kyari, has become institutionalized with the publication of the 2019 and 2020 audited financial statements as well as the publication of monthly financial and operations report.

He said, “For a long time, the oil and gas sector was steeped in opaqueness and non-disclosures, leading to widespread speculations and agitations on the operations of the Corporation.

“It is, therefore, heartwarming that in 2019, the Federal Government launched the ‘Operation White’ project which is hinged on transparency and accountability in the supply and distribution of petroleum products.

“True to the pledge you made on assumption of office to open the NNPC financial books to the public as part of your management’s commitment to openness, transparency, and accountability in line with the global EITI principles, the country heralded a new dawn in 2020, despite the corrosive effect of Covid-19, the NNPC published its 2018 annual reports and audited financial statement after more than four decades.

“Without a doubt, this drive for transparency and accountability has not been a one-off affair, rather has become institutionalized as audited accounts for 2019 and 2020 with profit declared published as well as monthly financial and operations report.

“It is gratifying that this has spurred investors’ confidence and renewed the hope of our fellow country in the management of the NNPC led by Mallam Mele Kyari.”

Isiguzo seized the opportunity of the visit to congratulate the zeal of President Muhammadu Buhari-led Federal Government and his strident effort in the passage of the Petroleum Industry Act.

He stated that while there are contentions over some provisions of the Act, there is no perfect piece of legislation anywhere in the world.

He added, “It is for this reason that the NUJ urges those who have some angst against the Act to seek for legislative instruments to correct whatever perceived issues therein.

“Also, it is expedient to commend the speed at which you have set out to implement the directive of Mr. President in accordance with the PIA to change the structure of the NNPC to a commercially viable entity in the form of a limited liability company by its registration with the Corporate Affairs Commission, though you had a six-month mandate to do so from Mr. President.

“It is our expectation that as you work towards the full commercialization of the NNPC into a limited liability company, you will work with the same fidelity in the movement of assets and liabilities to ensure that the objectives of the PIA are not defeated.”

On the high price of domestic cooking gas, Isiguzo told the GMD that Nigerians are at a loss as to the astronomical rise in cost and called for the intervention of the NNPC to drive down prices.

He said, “Nigerians are at a loss as to the astronomical rise in the cost of domestic gas (cooking gas.). As you are aware, the constitutional mandate we hold as members of the media makes a demand on us to ask critical questions and hold you as government official accountable to Nigerians.

“It is in this regard that I appeal that the escalating cost of domestic gas should be arrested especially at a time we seek to control the effects of greenhouse emissions. The price of not doing so will be clear and manifest wide scale deforestation of our natural tree reserves.”

On the inflationary cost of under recovery in the price of Premium Motor Spirit, the NUJ President said this has become a source of worry especially at a time the country is revenue challenged.

He, therefore, called for the timely completion of ongoing rehabilitation of the Port Harcourt Refinery, stating that the Union remains optimistic that it will impact positively on domestic fuel production and cut down on the current under recovery payments.

“The NUJ looks forward to proper update on the ongoing rehabilitation of the PH Refinery and requests an on-the-spot assessment of the progress of work so as to be adequately suited to inform Nigerians on the progress of the contract,” he added.

Responding, the NNPC GMD told his guests that the PIA has made disclosure mandatory for the Corporation’s operations.

He explained that the enthronement of the PIA as the operative law for the Nigerian oil and gas industry means that it has become mandatory for the Corporation to sustain and even surpass the current level of transparency and accountability in place in its operations across all levels.

Kyari noted that the new law even makes the Freedom of Information Act unnecessary as stakeholders may not need to invoke the FOI before getting desired answers since all issues would now be brought to the open