The Nigeria National Petroleum Company (NNPC) Ltd. has refuted rumors suggesting that it intends to relocate its Abuja headquarters to Lagos.
Mr. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, clarified this stance during the continuation of the investigative hearing by the ad hoc committee on the acquisition of OVH Energy by NNPC Ltd. on Friday.
Kyari noted that despite certain claims, NNPC had no intention of relocating to Lagos, even with its recent transition to a private company status, registered under the Corporate Affairs Commission. He inferred that such assumptions might stem from the reality that 70% of the company’s operations are based in Lagos. A relocation, he added, would place an unnecessary financial burden on the company.
Kyari emphasized that NNPC Ltd. has streamlined its operations and strategically positioned its staff to align with their expertise. While the registered headquarters of NNPC Ltd. remains in Abuja, he explained that simply having the GCEO situated with the operational team in Lagos doesn’t imply a headquarters shift.
Addressing the root of these rumors, he stated, “Many who allege the move do so out of resistance to internal relocations; this is a common challenge in mergers and acquisitions globally. Those reluctant to relocate have been provided with the option to resign.”
Kyari further stated that mergers and acquisitions naturally come with challenges, but NNPC Ltd. aims to make this transition as smooth as possible, ensuring it adds value. He clarified that in any merger, the prevailing culture and practices take precedence, which is what’s happening at NNPC Ltd.
Discussing the incorporation of expatriates, Kyari stressed that no national oil company with limited liability operates without them. He shared the extensive negotiations that went into retaining these expatriates. “Without a diverse skill set, we cannot progress. Inclusion of individuals who bring unique value is paramount,” he explained.
Kyari expressed his vision for NNPC Ltd. to be a company of international repute that partners trust. This requires the incorporation of expatriates who bring unique insights and skills. He also pointed out that the success of NNPC Ltd. should be celebrated. “This nation owes me gratitude,” he proclaimed.
Elaborating on the company’s achievements, he said, “In the first quarter of 2023, we posted a profit of N18.4 billion, a feat we couldn’t achieve before acquiring OVH.” Previously, NNPC Ltd. controlled only 15% of OVH, but now, they have successfully secured 30%.
Rep. Hassan Na’laraba, the committee’s chairman, praised the GCEO for his clarifications, emphasising that their investigations aim to prevent corrupt practices. He mentioned that the GCEO might be summoned again for further details, as the committee is slated to submit its report in a week and further discussions might be necessary during their oversight activities.