The Nigerian National Petroleum Company Limited, NNPCL, has explained why it paid gratuities to its Group Chief Executive Officer, Mele Kyari; Chief Financial Officer, Umar Ajiya, and some other top officials while still in active service.
Recall that an online newspaper, Sahara Reporters, had exclusively reported how Mele Kyari and Ajiya allegedly paid themselves billions of Naira as gratuities.
Some other top officials of the NNPC were also said to have been paid undisclosed amounts as gratuity.
Reacting to the report, in a statement on Thursday, the NNPCL’s Chief Corporate Communications Officer, Garbadeen Muhammad, said the officials were paid for their service to the “NNPC and not NNPCL”.
The statement read, “The general public may recall the passage of the Petroleum Industry Act and the successful transition of the Nigerian National Petroleum Corporation to a commercially driven pNational 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.
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“The PIA 2021 is deliberate about the long-term sustainability of the 20-year-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.
“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.
“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 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.”
