Adeyemi Adebanjo
APPARENTLY disconcerted with the public opprobrium trailing the reported payment of huge sums of money as gratuities to the Group Managing Director and Group Executive Director Finance and Administration of the Nigeria National Petroleum Company Limited, Mallam Mele Kyari and Mr. Umar Ajiya, respectively, the organisation has said the action was in tandem with the provisions of the Petroleum Industry Act (PIA) 2021.
An online news medium (not Eighteen-Eleven Media) had earlier in the week reported had reported that Mallam Kyari and Mr. Ajiya paid themselves, alongside some other top officials, billions of naira as gratuity despite still being in service. The report hinged the action on the fear of being retired compulsorily by the incoming government of Bola Ahmed Tinubu. 
However, reacting to the report, NNPCL insists there was nothing unusual about the payment. A release signed by Garba Deen Muhammad, Chief Corporate Communications Officer, NNPC Limited, dated 12th April 2023 pointed out that the career of Mallam Mele Kyari and Mr. Umar Ajiya ended with Nigerian National Petroleum Corporation ended in line with the provisions of PIA and Appropriate Government Circular.
Mr. Muhammad stressed that 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 a focus on sustainable value creation.
“Pursuant to the provisions of the Act, 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 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.
Mr. Muhammad further stressed that based on the provisions of the Act, the new tenured roles Mallam Mele Kyari and Mr. Umar Ajiya assumed with NNPC Limited cannot be regarded as a continuance of their previous positions in the defunct Corporation.
“For further clarity on the misrepresentation of facts by Sahara Reporters, the Circular issued by the Head of the Civil Service of the Federation, dated 27 July 2009, has explicitly stated that appointments as Chief Executives of Government-Owned Companies are “tenured appointments”, and 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 general public is therefore advised to disregard the spurious and malicious publications while the company will take necessary legal steps to seek redress”, the release stated.
Eighteen-Eleven Media