Business
NNPC lines up 1,100 for sack
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, says that he had received the Presidency’s approval to commence the final phase of the restructuring of the Nigeria National Petroleum Corporation (NNPC) which would see the corporation unbundled into four components, and the disengagement of about 1,100 of NNPC headquarters’ staff.
He stated at a town hall meeting in Abuja, Thursday, that constrained by the drop in revenue, the Federal Government no longer has the resources to fund the oil and gas industry, and that by January it would take a final decision on what to do with the nation’s refineries.
According to him, government is considering and developing new models of financing the industry in the days ahead, while arrangement had been concluded to adopt a price modulation mechanism that would set a price ceiling of between N87 and N97 per litre for Premium Motor Spirit (PMS) also known as petrol.
On the issue of paucity of funds, Kachikwu said: “Financing is going to be a key component of our goal, because new models of financing would have to emerge. The country does not have the sort of resources to continue to fund the oil industry. As we go upstream, we are going to begin to see a lot of innovative financing mechanism to provide funding for the oil industry.
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“My dream, if I achieve it, is that by the end of 2016, we would completely exit cash calls and be able to find ways to help support our business and get a lot more autonomy in terms of running the industry and report, basically, profit to the Federal Government.”
Kachikwu who doubles as the Group Managing Director of the NNPC, added that the unbundling process would see the NNPC broken down into four key components, namely: the upstream company, downstream company, the midstream company, which is gas and power marketing, and the refining group holding company.
He further stated that one of the major restructuring efforts would be in making the headquarters operations cost effective, hence, about more than half of its 2,200 core headquarters staff would be whittled down, with a lot of the affected staff assigned to the subsidiaries to help make the units more efficient and profitable.
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