NNPC Limited, Nigeria’s national energy company, has refuted allegations of inappropriateness in the disengagement of the Group Managing Director (GMD), Mallam Mele Kyari, and Group Executive Director (GED) F8A, Mr. Umar Ajiya, from the services of the old Corporation, as well as their subsequent appointment as Group CEO and CFO in the new NNPC Limited.
In a press statement issued by the Chief Corporate Communications Officer, Garba Deen Muhammad, the company noted that the disengagement was in line with the provisions of the Petroleum Industry Act (PIA) and appropriate government circulars.
The PIA, which was passed in 2021, has made clear and unambiguous provisions relating to governance, administration, and the appointment of a CEO, CFO, and Board of Directors by the President.
“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’s not a career posting as erroneously presented by Sahara Reporters,” the statement read.
Furthermore, the company highlighted that the appointment of Mallam Mele Kyari and Mr. Umar Ajiya as NNPC Limited Group CEO and CFO respectively, for a tenure of five years each with effect from 16 September 2021, had ended their employment with the Corporation, and they were thus entitled to their terminal benefits in respect thereof.
Their previous ranks of GMD or GED F&A were not a consideration in the appointment of the CEO or CFO of NNPC Limited, in line with the provisions of the PIA.
“The new tenured roles they assumed with NNPC Limited cannot be regarded as continuance of their previous positions in the defunct Corporation,” the statement added.
The company also pointed out that the circular issued by the Head of the Civil Service of the Federation, dated 27 July 2009, had 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 company stated that it is committed to delivering greater value to Nigerians in strict compliance with extant laws and circulars, and that it will take necessary legal steps to seek redress against the misrepresentation of facts published by Sahara Reporters.
“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 statement concluded.
