Business and Financial Terminology

• NNPC Limited SCM (Supply Chain Management) processes involve several steps: Procurement Method, RFP/Quotation, Emergency Procurement, Frameworks Agreement, Purchasing Cards, Reverse Auction, Negotiate with Preferred Bidder, Issue Purchase Order, Contract Management, Vendor Management, Clearing and Haulage, Goods Receipt, Warehousing, Stock Review, Stock Replenishment, Stock Write-Off & Disposal, Stock Transfer, and Custody Transfer.

• Procurement Method: Determine method, key performance indicators, issue EOI (Expression of Interest), and RFP (Request for Proposal)/Quotation.

• Emergency Procurement: Policies, procedures, input & output documents, and key performance indicators.

• Frameworks Agreement: Policies, procedures, input & output documents, and key performance indicators.

• Purchasing Cards (P-Cards): Policies, procedures, input & output documents, and key performance indicators.

• Reverse Auction: Policies, procedures, input & output documents, and key performance indicators.

• Negotiate with Preferred Bidder: Policies, procedures, input & output documents, and key performance indicators.

• Issue Purchase Order: Policies, procedures, input & output documents, and key performance indicators.

• Contract Management: Policies, procedures, input & output documents, and key performance indicators.

• Vendor Management: Policies, procedures, input & output documents, and key performance indicators.

• Clearing and Haulage: Policies, procedures, input & output documents, and key performance indicators.

• Goods Receipt: Policies, procedures, input & output documents, and key performance indicators.

• Warehousing: Policies, procedures, input & output documents, and key performance indicators.

• Stock Review: Policies, procedures, input & output documents, and key performance indicators.

• Stock Replenishment: Policies, procedures, input & output documents, and key performance indicators.

• Stock Write-Off & Disposal: Policies, procedures, input & output documents, and key performance indicators.

• Stock Transfer: Policies, procedures, input & output documents, and key performance indicators.

• Custody Transfer: Policies, procedures for custody transfer (non-stock items), input & output documents, and key performance indicators.

• Asset Disposal Committee: An internal committee for recommending the best method of disposing obsolete or surplus equipment or stock and handling the disposal process.

• Authority for Expenditure: A budgetary document that lays out proposed expenses for a particular project and authorizes an individual or group to spend a certain amount of money for that project.

• Bill of Engineering Measurement and Evaluation: A document that lists all work items, their estimated quantities and cost, prepared from the specification and drawings of a project.

• NNPC Limited SCM (Supply Chain Management) processes involve several steps: Procurement Method, RFP/Quotation, Emergency Procurement, Frameworks Agreement, Purchasing Cards, Reverse Auction, Negotiate with Preferred Bidder, Issue Purchase Order, Contract Management, Vendor Management, Clearing and Haulage, Goods Receipt, Warehousing, Stock Review, Stock Replenishment, Stock Write-Off & Disposal, Stock Transfer, and Custody Transfer.

• Procurement Method: Determine method, key performance indicators, issue EOI (Expression of Interest), and RFP (Request for Proposal)/Quotation.

• Emergency Procurement: Policies, procedures, input & output documents, and key performance indicators.

• Frameworks Agreement: Policies, procedures, input & output documents, and key performance indicators.

• Purchasing Cards (P-Cards): Policies, procedures, input & output documents, and key performance indicators.

• Reverse Auction: Policies, procedures, input & output documents, and key performance indicators.

• Negotiate with Preferred Bidder: Policies, procedures, input & output documents, and key performance indicators.

• Issue Purchase Order: Policies, procedures, input & output documents, and key performance indicators.

• Contract Management: Policies, procedures, input & output documents, and key performance indicators.

• Vendor Management: Policies, procedures, input & output documents, and key performance indicators.

• Clearing and Haulage: Policies, procedures, input & output documents, and key performance indicators.

• Goods Receipt: Policies, procedures, input & output documents, and key performance indicators.

• Warehousing: Policies, procedures, input & output documents, and key performance indicators.

• Stock Review: Policies, procedures, input & output documents, and key performance indicators.

• Stock Replenishment: Policies, procedures, input & output documents, and key performance indicators.

• Stock Write-Off & Disposal: Policies, procedures, input & output documents, and key performance indicators.

• Stock Transfer: Policies, procedures, input & output documents, and key performance indicators.

• Custody Transfer: Policies, procedures for custody transfer (non-stock items), input & output documents, and key performance indicators.

• Asset Disposal Committee: An internal committee for recommending the best method of disposing obsolete or surplus equipment or stock and handling the disposal process.

• Authority for Expenditure: A budgetary document that lays out proposed expenses for a particular project and authorizes an individual or group to spend a certain amount of money for that project.

• Bill of Engineering Measurement and Evaluation: A document that lists all work items, their estimated quantities and cost, prepared from the specification and drawings of a project.

• In December 2021, the Nigerian Federal Government and the Nigeria National Petroleum Corporation (NNPC) signed a N621 billion Memorandum of Understanding for road infrastructure construction.

• Following the passage of the Petroleum Industry Act in August 2021, NNPC now operates as a commercial entity and is no longer reliant on government funding and direct controls.

• Mele Kyari was appointed as the new Group Chief Executive Officer (GCEO) of NNPC in December 2021.

• In December 2023, a new Board and Management team will be appointed for NNPC, including the Non-Executive Board Chairman, Chief Pius Akinyelure.

• NNPC manages its business operations through Strategic Business and Corporporate Services Units (SBUs/CSUs).

• NNPC is responsible for upstream and downstream oil and gas developments, and has several subsidiaries and associated companies.

• The Nigerian constitution declares that all minerals, gas, and oil in the country belong to the federal government, and NNPC accounts for 76% of federal government revenue and 40% of the country's GDP.

• The Mallam Mele Kyari-led management of NNPC has been recognized for promoting transparency through various initiatives, including making public the corporation's audited accounts and setting up a joint committee with the Nigeria Extractive Industries Transparency Initiative (NEITI).

• Stakeholders have commended the commitment and success of Kyari's actions in improving the industry within the past year.

• NNPC's website now publicly features its audited accounts for the first time in history.

• The Nigerian Association of Petroleum Explorationists (NAPE) praised Kyari for stabilizing the industry through robust policies.

• Extractive Industries Transparency International (EITI) commended NNPC for setting a new standard of reporting.

• NNPC and NEITI established a joint committee to deepen collaboration and promote transparency in the oil and gas industry.

• In 2002, Tunji-Ojo left Obafemi Awolowo University in his third year to pursue a degree in Electronics and Communication Engineering at the University of North London, graduating in 2005. He earned a master's degree in Digital Communication and Networking from the same institution in 2006.

• Before his political career, Tunji-Ojo was a successful ICT businessman and executive. He became the CEO of Matrix IT Solutions Limited at age 24, and held certifications in Ethical Hacking and Counter Measures, CompTIA Network Plus Engineer, and Britannia Hardware A+ Management Certificate Holder.

• In Nigeria, Tunji-Ojo consulted for various government agencies, including the World Bank, and organizations like the Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian National Petroleum Corporation (NNPC). He also helped pioneer the first Nigerian Content Workshop in 2016.

• In 2019, Tunji-Ojo was elected as a House of Representatives member for Akoko North East/Akoko North West Federal Constituency of Ondo State on the All Progressives Congress (APC) platform. He organized support for Speaker Femi Gbajabiamila and was later appointed as the Chairman of the House Committee on Niger Delta Development Commission (NDDC).

• During his first term, Tunji-Ojo led a probe into alleged malfeasance of over 80 billion Naira in the NDDC, making it the first probe into the commission's financial activities. He was also a member of several committees, including National Security and Intelligence, Local Content, Gas Resources, North East Development Commission, Housing, and Solid Minerals.

• In February 2021, Tunji-Ojo was re-elected as the federal lawmaker representing Akoko North East and North West Federal Constituency. He was later appointed as the Minister of Interior by President Bola Tinubu and was sworn in on August 21, 2023.

• Tunji-Ojo holds various awards for leadership, including the Sir Ahmadu Bello Platinum Leadership Award of Excellence and the Kwame Nkrumah Leadership Award. He is married to Abimbola Tunji-Ojo and they have two children.

Test your knowledge of business and financial terms with this quiz. Learn about bill of quantities, business units, and capital expenditure.