With 7 divisions, NNPC splits into 20 subsidiaries

Finally, the Nigerian National Petroleum Corporation (NNPC) has been split into seven divisions comprising 20 subsidiaries.

The unbundling of the oil corporation lived up to an earlier promise made by Minister of State for Petroleum Resources and Group Managing Director of the corporation, Dr. Ibe Kachikwu that the exercise was billed for this week.

Kachikwu, who spoke to journalists in Abuja on Tuesday, also stated that the President has approved the final phase of restructuring of the NNPC.

He noted that subsidy regime on petrol and kerosene had not been terminated by the Federal Government, and that that what the government had done was to modulate the prices of the commodities based on the fall in crude oil prices internationally.

Referring to the final phase of the unbundling exercise, Kachiwu said, “Under that phase, we have five business-focused divisions – the upstream, which you used to call E&P (exploration and production); the downstream; the gas power marketing, which is a pull-out from the E&P; the refineries group, which is basically for all the three refineries; and then of course the ventures for every other little company that is here and there, thrown all over the place that doesn’t seem to have a sense of direction.

“So, the ventures will to act like the incubation centre where you nurture these companies through management, get them very efficient and then decide whether you want to spin them off to be on their own independently, or whether you want to throw them to the stock exchange. So, when I hear unbundling into 30 companies, that is not correct.”

He added, “If you look at the companies that will come underneath these divisions, we have a total of 20 firms on the whole. We had about 15 before, so only about four or five are new introductions. These subsidiaries are already there, we only added a few. Among those earlier divisions that I’ve given you, we also have finance and services, and that brings it to seven divisions. But five are business-focused, while the others provide services.

“Why are we doing this? It is because quite frankly, the NNPC is very over-staffed. So, we have to create work in order to ensure that everybody who is in the system will be busy and earn money. And as we began to do that, we realised suddenly that we had adequate staff and we are not really as over-staffed as we thought initially. So, the principle of our restructuring, which was approved by the President, is that nobody losses their work.”

Read also: NUPENG, PENGASSAN vow to oppose splitting of NNPC

The minister disclosed that chief executive officers had been appointed for the key business divisions of the corporation. They are: Bello Rabiu, Upstream division; Henry Ikem-Obih, Downstream; Anobor Kraga, Refineries; Saidu Mohammed, Gas and Power; and Babatunde Adeniran, Ventures.

Mr. Isiaka Abdulrazaq was appointed Group Executive Director, Finance and Accounts, while Isa Inuwa was named as the Executive Head, Corporate Services, NNPC.

Kachikwu said all the CEOs would report to him, being the GMD.

When asked if he would keep his post as a minister and the GMD of the NNPC, Kachikwu said the prerogative was that of the President, adding that when Buhari deemed it right to split the offices, it would happen.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now