Consolidation in the Season of Fierce Competition – THISDAYLIVE

Kabir Mohammed

There is a general consensus that competition is the fundamental principle and propelling force of capitalism; in full bloom, it promotes consumer benefit, market efficiency and critically, it is a catalyst for innovation. It is in this light that that the coming on stream of Dangote refinery into the country’s downstream sector and the fierce competition it has sparked can be seen in beneficial terms. Standard competition can also easily flip to unfair competition driven as it were, by the hallucinatory obsession of a company to gain competitive advantage through deceptive or fraudulent business practices.

The recent sponsored attempt to disparage the quality of the Premium Motor Spirit (PMS) of the Nigerian National Petroleum Corporation (NNPCL) through a viral video that was unscientific, infantile and crude is a classic example of unfair competition. The false claims contained in the said viral video was aimed at dissuading consumers from buying fuel from NNPCL filling stations nationwide. Although the management of NNPCL and the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, an independent body had validated the product quality of NNPCL as of being of the highest industry standards, the damage done to the established reputation of the company is incalculable. Although the management of NNPCL threatened legal action, it is up to the intelligence community to unearth the source and sponsors of the video.

The expected impact assessment of the vile campaign may take some time but what is clear is that the resilience ingrained in the structure of the company by Mele Kyari’s transformational leadership has strengthened its ability to survive the unfair competition; critically, the current proactive leadership in place at NNPCL is crucial for the company to continue to play its leading role in delivering Africa’s energy transition. Even implacable critics are of the opinion that the plethora of initiatives implemented by Kyari and his management to foster transparency and accountability within the company is crucial for driving the country’s progress and development. There is a consensus of opinion that under Kyari, NNPCL has recorded significant strides in accountability and transparency, the most remarkable being his launch of the TAPE initiative  (Transparency, Accountability and Performance Excellence). This laudable vision plan has set a new standard for corporate governance in the company by promoting openness and the highest ethical standards in the running of the company.

Even before the company transformed into a CAMA company in 2021, Mele Kyari guided the company to automate its operations, a move he made as a critical component to align with his commitment to accountability, transparency and efficiency.

 Through the NNPC IT Division, he automated Key Performance Indicator dashboard across the entire IT Enterprise and Architecture. This revolutionary initiative improved reporting efficiency and real-time performance tracking. Rather than beat his chest in satisfaction and self-adulation, Mele Kyari also activated Microsoft Enterprise Additional Licenses for NNPC Digital Transformation Initiatives which lead to an estimated cost saving of over $1 million to the company. The use of modern technology to drive the operations of the company has created tremendous value for the company as it strives to remain competitive in the dynamic global oil industry. Under the guidance of Kyari, NNPCL has never hidden its vision of positioning itself as an energy company of global excellence. He identified research, technology and innovation as pivotal to the achievement of this vision. This belief led to the establishment of a division within the company dedicated to this purpose.

NNPCL has demonstrated resilience amidst fierce, sometimes unfair competition. The current leadership continues to demonstrate astute application and management of resources; it has been buffeted by the volatility of global oil market and local challenges such as oil theft and pipeline vandalism but effectively navigated these challenges and delivered significant achievements.

Problems associated with NNPC since its founding in 1977 are formidable; for decades, issues revolving around opacity, corruption and mismanagement impaired its operations and left its reputation in tatters. For sure these challenges are not for the coward or the lily livered; it required a corporate leader with grit, vision and unwavering commitment to meet the challenges of the moment. So far, Kyari’s stewardship elicits hope. Since he mounted the saddle, he has confronted these challenges head on and is successfully charting a new trajectory; his leadership has been defined by several legacy projects, milestones and innovative solutions to a myriad of problems confronting the company. The revamp of Port Harcourt and Warri refineries by Mele Kyari thought to be impossible by some critical stakeholders constitute a significant milestone that should not be understated.

NNPC under the leadership of Kyari is leading the charge for Nigerians to embrace alternative energy sources and leverage its obvious advantages. NNPCL’s relentless drive in this direction will provide Nigerians with cleaner more cost effective energy source; the guidance of Mele Kyari, NNPC is set to deliver 12 CNG Mother Stations as well as Mini LNG Plants envisioned to boost existing 1.6bscf of gas supply for the domestic market. In close collaboration with partners, the company is set to launch over 100 CNG sites nationwide, including 16 NNPCL Gas Marketing and NIPCO Gas JV sites. Kyari’s commitment to the country’s energy security is unrivalled. Driven by patriotism and national interest, he played a crucial role in supporting the establishment of Dangote refinery by securing a $1 billion loaned backed by NNPCL’s crude reserves.

 As he strives to consolidate the giant strides achieved by the company under his leadership, NNPCL is driven by six Sustainability Action Pillars; these include innovation and technology leadership, low carbon energy transition, sustainability economic development, global leadership and policy alignment, climate resilience and adaptation and environmental stewardship and biodiversity protection. Many of these action pillars are work in progress. Market volatility makes the oil and gas sector very uncertain but the enormous potentials of NNPC under the current management to drive the country’s economic transformation is real and not in doubt. Under Kyari, NNPCL has witnessed significant financial growth. This astronomical growth reflects the critical role of the company in Nigeria’s oil and gas sector; the total assets of NNPCL as at 2023 was valued at approximately N246 trillion (over $300 billion). This figure marked a significant increase from N58.48 trillion in 2022. As at the end of 2024, NNPCL’s total assets were valued at N370 billion. For the 2023 financial year, the company reported a net profit of N3.297, representing a 28 per cent increase from the previous year.

These impressive results were achieved because of the foundation for transformation built by Kyari and his management team. Very early in his tenure, Kyari determined that for the company to thrive, it must, as a necessity, redefine its goals, values and purpose. This realization shaped the raft of policies and initiatives that he unleashed; NNPCL under his leadership adopted a new corporate vision with the aim to align with global best practices. He also institutionalized a culture of efficiency and effectiveness aided in the main, by the streamlining of the operations of the company. The integration of technology, transparency and integrity as core values, public disclosure and financial audits in operations of NNPCL has not only increased transparency and accountability, it has instilled zero tolerance for corruption. The concerted efforts of the current management elicit hope and optimism in the present and future operations and wellness of the company. The consolidation of these efforts should be the top priority of government, critical stakeholders and the current management of the company.

• Mohammed, contributed this colum from  Surulere, Lagos.