Home > Latest News > NNPC Explains New Structure

NNPC Explains New Structure

The Nigerian National Petroleum Corporation (NNPC) has given flesh to its earlier announced restructuring of the national petroleum behemoth, explaining that competitiveness, transparency and accountability would be the new watchwords.

It also unveiled its blueprint for operations going forward.

In the energy company’s March edition of its publication, ‘Energy in Brief’, it explained that the restructuring saw the corporation being reorganized into five autonomous business units and a corporate headquarters (CHQ).

The four autonomous units, according to the publication, are Upstream, Downstream, Refineries, Gas and Power Companies. The new CHQ is made up of NNPC Ventures, Corporate Services and the GMD’s office.

“A none-core asset company, NNPC Ventures, makes up the fifth unit”, it further says.

“Clear performance targets-both financial and operational were set to accelerate the growth and profitability of the new business units. Emphasis is on competitiveness, transparency and accountability”.

Addressing NNPC staff at a town hall meeting where the new reform was announced, Dr. Emmanuel Ibe Kachikwu, the HMSPR/GMD, said the focus in the upcoming months would be to transform NNPC’s negative financial position to positive and to essentially address funding issues and other fiscal related incentives such as revisiting the Production Sharing Contracts standing agreements with a view to maximizing its benefit.

READ ALSO:  Lagos PDP Crisis Deepens

Others are to address dependence on fuel, exploring gas market development, meeting up with FAAC payments, industry accountability and transparency. The minister reiterated the need for the new heads to take their role seriously,” be efficient and accountable”, he remarked. He stated that NNPC’s greatest asset is its skilled pool of efficient workforce and urged the new heads to utilize such advantage to turn around the fortune of the corporation and warned that they must run their respective businesses not as an administrative block but as a going concern that would add up to the bottom-line. He said some of the achievements noticed where based on the outcome of the recommendations of the 20 fixes initiatives.

He said NNPC has for so long a time been unable to meet its obligations to FAAC but stated that the narrative has changed with the corporation now able to meet 75 percent of its obligation to the Federation Account Allocation Committee (FAAC). He welcomed the goodwill and understanding of the government especially the governors of the 36 states of the federation for their appreciation and support to the reform programme of the corporation.

READ ALSO:  Olulade Laments Undue Delay, Manipulation Of Corruption Trials

On the blueprint for operating the new NNPC, the document says NNPC will seek a secured and harmonious business environment where safety, security of assets, facilities and persons are fully guaranteed by government.

It wants to reduce the level of poverty in oil and gas producing communities, transit from being a massive importer of petroleum products to a net exporter of petroleum products and capture value addition in gas products such as fertilizers, methanol and petrochemicals to support of its export diversification in order to enhance its GDP growth and create more employment.

It further says that it would promote and enhance capacity utilization of local refineries, crude oil, gas and petroleum products pipelines and depots to guarantee effective supply and distribution of products across the country.