Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), asserts that energy security is indispensable for any public wealth creation endeavour to succeed.
Speaking at the Ministry of Finance Incorporated (MOFI) Public Wealth Management Conference in Abuja on Tuesday, Kyari highlighted that all wealth-generating activities, including agriculture, heavily rely on various forms of energy to thrive.
He emphasised, “If you don’t have energy, you don’t have agriculture. You can do all the agriculture, but you can’t take it to the market, you may not be able to preserve it, you can’t even export it. So, all those indices are clearly connected to the ability to create energy.”
Kyari underscored Nigeria’s significant energy deficit, noting that approximately 70% of the population lacks access to clean cooking fuel, while over 50% lack access to electricity.
Identifying key obstacles to achieving energy security in Nigeria, Kyari cited insufficient investment in the energy sector due to uncertainties in the business environment and multiple taxes. He highlighted that Nigeria has received less than 3% of the total investment flow into Africa over the past decade.
Nevertheless, Kyari reaffirmed NNPC Ltd.’s commitment to addressing the energy deficit and laying the groundwork for sustainable wealth creation. He cited NNPC Ltd.’s growth trajectory, transitioning from a loss position of N803 billion in 2018 to N2.5 trillion in 2022, as evidence of the company’s potential to spearhead wealth creation in Nigeria.
Despite challenges, Kyari noted that NNPC Ltd. remains the highest tax-paying corporate entity in Nigeria, underscoring its contribution to the country’s revenue generation.