NNPC Defends  Kyari, Ajiya’s  Gratuity, Insists Payments Made within the Law

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Company Limited (NNPC) yesterday defended the gratuities paid to the  the Group Managing Director, Mele Kyari and Group Executive Director, Finance and Accounts, Umar Ajiya, within the old corporation, saying it was within the provisions of the Petroleum Industry Act (PIA) and appropriate government circular.

An online news medium had reported that the alleged payment of gratuity to Kyari and Ajiya ran into billions of naira despite still in service. Some other top officials of the NNPC were also said to have been paid.

The online medium stated that the NNPC officials made the move over fear of being retired compulsorily by the incoming government of Bola Tinubu.
“Our attention is drawn to the malicious publication by Sahara Reporters alleging inappropriateness of the disengagement of the GMD, Mallam Mele Kyari and GED F&A, Mr. Umar Ajiya from the services of the old corporation and their subsequent appointment by Mr. President to commence a new tenure as Group CEO and CFO in the new NNPC Limited.

“The general public may recall the passage of the PIA and the successful transition of the Nigerian National Petroleum Corporation to a commercially driven National Energy Company, the NNPC Limited.

“The PIA 2021, has in addition to the creation of NNPC limited made  clear and unambiguous provisions relating to Governance, Administration, and the appointment of a Chief Executive Officer (CEO), a Chief Financial Officer (CFO) and Board of Directors by Mr. President.

“The PIA 2021 is deliberate about the long term sustainability of the 20 years long petroleum industry reform that climaxed in the creation of NNPC Limited as a commercially driven National Energy Company, with focus on sustainable value creation,” a statement by the Chief Corporate Communications Officer of the company, Garba Muhammad, stated.

Pursuant to the provisions of the Act, the statement stated that the appointment of the CEO and CFO of NNPC Limited by the president of the Federal Republic of Nigeria is on the basis of distinct terms and conditions of service including tenure, employment benefits and termination.

The appointment of CEO and CFO, the NNPC said, is not a career posting as erroneously presented by Sahara Reporters.

“Specifically, section 59(3) of the PIA 2021 has clearly stipulated the conditions to be considered in appointing the CEO and CFO of NNPC Limited without recourse to previous employment ranks in the Corporation. The previous rank of GMD or GED F&A was therefore not a consideration in the appointment of the CEO or CFO of NNPC Limited.

“Consequently, by virtue of the appointments of Mallam Mele Kyari and Mr. Umar Ajiya as NNPC Limited Group CEO and CFO respectively by Mr President for a tenure of five years each with effect from 16 September 2021 has ended their employment with the corporation and are thus entitled to their terminal benefits in respect thereof.

“Based on the provisions of the Act, the new tenured roles they assumed with NNPC Limited cannot be regarded as continuance of their previous positions in the defunct Corporation,” the national oil company noted.

For further clarity on what it termed the misrepresentation of facts by Sahara Reporters, the circular issued by the Head of the Civil Service of the Federation, dated 27 July 2009, it said, had explicitly stated that appointments as Chief Executives of Government-Owned Companies are “tenured appointments”.

“In respect of such tenured appointments, career officers who wish to take up such appointments shall retire from service, in order to run their tenure uninterrupted. The circular recognises a distinction between a tenured appointment to serve as chief executive of a government-owned company, as distinct from a career office.

“Public service rules require termination of any fixed career appointment to take up a tenured role. It is therefore our belief that the informed general public will disregard the misinformation and misrepresentation of facts published by Sahara Reporters.

“NNPC compensation does not pay gratuity into billions and we are a compliant organisation that is committed to delivering greater value to Nigerians in strict compliance with extant laws and circulars.

“The Group CEO and the CFO have demonstrated patriotism by ending their career appointments with the corporation to serve the nation on five years tenured appointment in NNPC Limited,” the NNPC said.