Members of the old and new Boards of Directors of Nestoil and Obijackson Group during the inauguration dinner for new members on Friday in Lagos
Nestoil chairman tasks new boards on governance, financial sustainability
The Chairman, Nestoil and Obijackson Group, Dr Ernest Azudialu-Obiejesi, has urged the group’s new boards to prioritise financial sustainability, corporate governance, operational efficiency and risk management for long-term growth.
Azudialu-Obiejesi gave the charge at a dinner organised by the group on Friday night in Lagos to inaugurate the boards.
He said the boards must focus on the group’s strategic direction while ensuring management received the necessary support, oversight, and accountability to deliver results.
He listed five priority areas: financial sustainability; operational excellence and asset protection; risk management, compliance and internal control; governance and accountability; and sustainable growth.
The chairman stressed the need for disciplined oversight of liquidity, cash flow, debt, financing arrangements, revenue recognition, receivables, and cost management.
“Strong accounting results must ultimately translate into sustainable cash flows and financial resilience,” he said.
He noted that the group’s businesses had faced significant challenges, including financial pressures, legal and regulatory issues, operational constraints, asset integrity concerns, and weaknesses requiring stronger internal controls and governance.
He, however, said some businesses had recorded improved financial performance, while progress had been made in restructuring, financing initiatives, and recovery of key corporate assets.
Azudialu-Obiejesi urged the boards to ensure risk management became an integral part of decision-making rather than a separate compliance exercise.
He said the boards should provide clear strategic direction, ensure management operated within approved authorities and governance frameworks, and identify opportunities to improve asset utilisation, operational efficiency, and long-term value.
“The role of the board is not simply to review historical performance, but to provide strategic direction, exercise appropriate oversight, challenge assumptions where necessary and ensure the management has the clarity, resources and accountability required to deliver,” he said.
He also encouraged directors to contribute their experience, independent judgment, and professional expertise to board deliberations, adding that challenges should be raised early with proposed solutions and clear accountability.
Meanwhile, the Group Executive Director, Nestoil, Dr Nnenna Obiejesi, urged new and existing board members to uphold the organisation’s core values of integrity, leadership, innovation, teamwork and excellence.
Obiejesi, who described the values as “I-Light,” said they should be reflected consistently in the group’s daily operations and decision-making.
She said the values must form an integral part of the organisation’s culture to ensure its sustainability beyond the vision of its founders.
Also, the Ooni of Ife, Oba Adeyeye Ogunwusi, newly inaugurated Chairman of the Board of Amaranta Oil and Gas Development, which manages Oil Mining Lease (OML) 42, said the company planned to increase crude oil production from about 40,000 to 50,000 barrels per day to between 100,000 and 200,000 barrels per day.
Ogunwusi said the target would be pursued through stronger corporate governance, increased production capacity, and collaboration with the federal government.
He said the company would draw on his corporate and entrepreneurial experience, as well as his relationships in community development and intergovernmental affairs, to support its growth.
The traditional ruler said OML 42 produced over 250,000 barrels per day in the late 1970s and early 1980s, expressing confidence that production could rise significantly.
He said higher output would benefit the company and the country through increased government revenue.
According to him, Amaranta paid more than one billion dollars in royalties and other payments to the federal government in the previous y
Similarly, the Chairman, Nestoil Technical Services Ltd., Mr Ben Akabueze, pledged to bring his 43 years of experience in auditing, consulting, financial services, banking and the public sector to the board.
Akabueze described the company as resilient and urged it to build on its achievements while learning from past experiences.
He said the next phase of the organisation’s development should focus on growth and consolidation.
The Group Finance Manager, Mr Harrison Ibagere, also pledged to prioritise accurate financial reporting, regulatory compliance, and protection of the group’s assets.
He said the focus would include maintaining financial stability, enhancing shareholder value, and meeting the group’s obligations to internal and external stakeholders. (NAN)
