New NNPC GMD, Ibe Kachikwu, Begins Restructuring Nigeria’s Nationwide Oil Firm, NNPC
The newly appointed Group Managing Director (GMD) of natural gas and oil the Nigerian Nationwide Petroleum Corporation (NNPC), Dr Ibe Kachikwu, has wasted no time in getting on with the clean up and restructuring of NNPC. Barely days into the job, the new GMD was hiring and firing in his multi-faceted strategy to restructuring Nigeria’s nationwide oil firm, something that has been welcomed by the oil and gasoline trade. He intends to take the three facets to his restructuring agenda in flip.
1. The Folks Phase in Restructuring natural gas and oil NNPC
The primary stage is what he calls the “People Facet.” The GMD’s strategy is to purge the top echelon of the Company, which has been described as a cesspit of corruption by critics. There is no suggestion that each one of these removed had been involved in unsuitable doing however his view is that to natural gas and oil get a clean start at NNPC you must get new folks in who know from the beginning that it is not enterprise as ordinary.
Deciding on this part of the restructuring to let the axe fall the place it might, Kachikwu has sacked all the previous GEDs of the Corporation. The sacked GEDs of 8 directorates are:
– Mr. Bernard Otti, GED Finance and Accounts;
– Dr. Timothy Okon, Appearing GED Exploration and Production who also doubled as Coordinator Company Planning & Technique;
– Engr. Adebayo Ibirogba, Engineering and Know-how;
– Dr. David Ige, Gasoline and Energy;
– Ms. Aisha Abdurrahman, Industrial and Investment;
– Dr. Dan Efebo, Company Services;
– Engr. Ian Udoh, Refining & Petrochemicals;
– Dr. Attahiru Yusuf, Business Growth.
As part of his restructuring agenda, Kachikwu has reduced the eight Directorates to 4. Finance has been merged with Providers, Refining with Techonology while Business Improvement as well as Fuel and Energy have been executed away with altogether.
The new GEDs of NNPC are:
– Dr. Maikanti Baru, Exploration & Production;
– Mr. Isiaka Abdulrazaq, Finance & Services;
– Engr. Dennis Nnamdi Ajulu, Refining & Know-how;
– Dr. Babatunde Victor Adeniran, Industrial & Investment.
Other appointees within the culling exercise which the Group General Manager, Group Public Affairs, mentioned in an announcement, was supposed turn the Corporation into a lean, efficient, enterprise-focused, clear and accountable national oil firm, embrace the following appointees to head the NNPC subsidiaries:
– Mrs. Esther Nnamdi-Ogbue, Managing Director, Pipelines and Products Marketing Company (PPMC);
– Engr. Chinedu Ezeribe, Managing Director, Warri Refining & Petrochemicals Company (WRPC);
– Mr. Babatunde Bakare, Managing Director, Nigerian Gas Company (NGC);
– Mr. Inuwa Ibrahim Waya, Managing Director, Hyson;
– Mr. Abubakar Mai-Bornu, Managing Director, Nigerian Petroleum Growth Company (NPDC);
– Mr. Ladipo Fagbola, Managing Director, NNPC Retail;
– Mr. Rowland Ewubare, Managing Director, Built-in Knowledge Services Ltd (IDSL);
– Mr. Modupe Bammeke, Managing Director, NNPC Properties;
– Mr. Abdulkadir Saidu, Managing Director, Duke Oil;
– Mr. Dafe Sejebor, Group Common Supervisor, Nigerian Petroleum Investment Administration Providers (NAPIMS).
Mr Chidi Momah has been appointed as Group Normal Manager, Firm Secretary & Authorized Adviser, a vital appointment given the GMD’s plans to look extensively at NNPC contracts, significantly those with traders and likewise its joint venture partners.
In whole, Kachikwu has axed 38 high management staff and decreased numbers from 122 to 83 “to jump-begin a brand new enterprise outlook to enhance the operational atmosphere as a revenue-pushed business as in opposition to the current civil service orientation.”
Amongst the top managers relieved of their duties had been: Basic Supervisor (GM) Industrial, GM NNPC Retail, GM Sales and Marketing NNPC Retail, GM Operations NNPC.
2. The process Section in the Restructuring of NNPC
Kachikwu is being clinically methodical in his method to restructuring the Corporation, which has been racked with corruption and scandal through the years. In the subsequent stage of his battle to reform the Company will be about processes. In that part, he intends to get a forensic audit performed. He mentioned: “We’re going to place processes and controls in place. We are going to do retraining and repositioning after which, we are going to re-engage our majors and minors, all those who’re energetic in the sector, for us to work as a workforce to take Nigeria forward.” Then the man, who has been chosen to wield the axe within the President’s laudable ambitions for the State corporation, says, he will be capable to say to the nation: “This is the state of the company.”
3. The Business Part in Restructuring NNPC
Kachikwu’s plans in his three-section undertaking are to culminate in an intensive assessment of the prevailing contracts. He intends to use this stage to look in any respect the prevailing contracts, which makes the Company’s legal adviser, a key appointee in the method. He said: “The final stage will be the enterprise stage, which shall be trying in any respect the existing contracts. Are they good Are they okay Do they have to be re-kitted and redone “
In a move, which many Production Sharing Contract holders will welcome, Kachikwu says he will look at the PSCs. He needs to take a look at restructuring the contracts to deal with the challenges posed by lowered balance sheets as a result of $40 or $50 per barrel oil. Specifically, holders of PSCs want to him to reduce the onerous efficiency bond requirement, which is stopping many awardees from moving forward with the development of their property. He needs to energise recovery and revenue growth to extend revenue for the federal government. Trade watchers are additionally anticipating him to take the scissors to the extremely criticized and opaque “Strategic Alliance Agreements” with its subsidiary, NPDC.
A lot is anticipated of Kachikwu
Buhari’s hatchet man is not sleeping very much. He knows the burden he is carrying on his shoulder. He says: “It is very intensive work; very calibrated work. It’s a brand new technique of oil administration in the nation and clearly, giving fillip to Mr. President’s dream of taking the oil industry back to where it must be.”
Buhari is expected to delay the appointment of a Minister of Petroleum Sources for at the least 18 months, so as to provide Kachikwu free reign in his restructuring process. That means that Kachikwu will report on to the President till a new Minister is appointed. Even then, the President’s plans to break up NNPC into two, with one regulatory arm and another commercial arm could imply that the Kachikwu, depending on which arm he stays with, may not even must report to the Minister of Petroleum Sources when appointed.
The long-awaited restructuring of NNPC has finally begun in earnest. Because the industry looks on, it actually seems that in Kachikwu, Nigeria’s new President, has found somebody equal to the duty of cleansing up Nigeria’s scandal ridden state oil corporation.