October 28, 2020

New NNPC GMD, Ibe Kachikwu, Begins Restructuring Nigeria’s Nationwide Oil Organization, NNPC

ibe kachikwu appointed Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC), Dr Ibe Kachikwu, has wasted no time in acquiring on with the cleanse up and restructuring of NNPC. Scarcely days into the work, the new GMD was employing and firing in his multi-faceted strategy to restructuring Nigeria’s countrywide oil business, something that has been welcomed by the oil and gasoline industry. He intends to get the 3 facets to his restructuring agenda in switch.

1. The Men and women Phase in Restructuring NNPC

The initial stage is what he calls the “Folks Factor.” 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 recommendation that all of these taken out were concerned in incorrect carrying out but his see is that to get a cleanse begin at NNPC you have to get new people in who know from the commence that it is no for a longer time company as normal.

Choosing in this element of the restructuring to enable the axe drop where it may, Kachikwu has sacked all the former GEDs of the Corporation. The sacked GEDs of eight directorates are:

Mr. Bernard Otti, GED Finance and Accounts
Dr. Timothy Okon, Performing GED Exploration and Production who also doubled as Coordinator Corporate Organizing & Technique
Engr. Adebayo Ibirogba, Engineering and Technologies
Dr. David Ige, Gasoline and Electrical power
Ms. Aisha Abdurrahman, Industrial and Expenditure
Dr. Dan Efebo, Company Services
Engr. Ian Udoh, Refining & Petrochemicals
Dr. Attahiru Yusuf, Organization Advancement.

As part of his restructuring agenda, Kachikwu has decreased the 8 Directorates to four. Finance has been merged with Providers, Refining with Techonology while Business Improvement as properly as Gas and Electrical power have been done absent with entirely.

The new GEDs of NNPC are:

Dr. Maikanti Baru, Exploration & Generation
Mr. Isiaka Abdulrazaq, Finance & Companies
Engr. Dennis Nnamdi Ajulu, Refining & Technologies
Dr. Babatunde Victor Adeniran, Professional & Expenditure.

Other appointees in the culling exercising which the Team Basic Supervisor, Group Community Affairs, explained in a statement, was meant switch the Company into a lean, productive, company-targeted, clear and accountable nationwide oil firm, contain the following appointees to head the NNPC subsidiaries:

Mrs. Esther Nnamdi-Ogbue, Taking care of Director, Pipelines and Merchandise Advertising Organization (PPMC)
Engr. Chinedu Ezeribe, Controlling Director, Warri Refining & Petrochemicals Business (WRPC)
Mr. Babatunde Bakare, Managing Director, Nigerian Gas Company (NGC)
Mr. Inuwa Ibrahim Waya, Managing Director, Hyson
Mr. Abubakar Mai-Bornu, Handling Director, Nigerian Petroleum Growth Firm (NPDC)
Mr. Ladipo Fagbola, Handling Director, NNPC Retail
Mr. Rowland Ewubare, Managing Director, Built-in Information Companies Ltd (IDSL)
Mr. Modupe Bammeke, Handling Director, NNPC Qualities
Mr. Abdulkadir Saidu, Handling Director, Duke Oil
Mr. Dafe Sejebor, Group Basic Supervisor, Nigerian Petroleum Expenditure Management Solutions (NAPIMS).

Mr Chidi Momah has been appointed as Group Standard Supervisor, Organization Secretary & Legal Adviser, a vital appointment offered the GMD’s plans to seem extensively at NNPC contracts, notably those with traders and also its joint venture partners.

In total, Kachikwu has axed 38 leading administration employees and lowered numbers from 122 to eighty three “to jump-commence a new organization outlook to boost the operational atmosphere as a earnings-pushed business as from the present civil service orientation.”

Amid the best administrators relieved of their duties ended up: General Supervisor (GM) Business, GM NNPC Retail, GM Sales and Marketing NNPC Retail, GM Functions NNPC.

2. The Procedure Stage in the Restructuring of NNPC

Kachikwu is getting clinically methodical in his approach to restructuring the Corporation, which has been racked with corruption and scandal over the years. In the following phase of his struggle to reform the Corporation will be about processes. In that phase, he intends to get a forensic audit carried out. He explained: “We are going to put processes and controls in spot. We are going to do retraining and repositioning and then, we are going to re-engage our majors and minors, all individuals who are active in the sector, for us to operate as a crew to take Nigeria ahead.” Then the man, who has been picked to wield the axe in the President’s laudable ambitions for the State company, says, he will be capable to say to the country: “This is the condition of the company.”

3. The Company Stage in Restructuring NNPC

Kachikwu’s ideas in his three-period venture are to culminate in a thorough review of the existing contracts. He intends to use this stage to search at all the existing contracts, which can make the Corporation’s authorized adviser, a key appointee in the process. He explained: “The last phase will be the organization phase, which will be looking at all the present contracts. Are they excellent? Are they alright? Do they need to be re-kitted and redone?”

In a transfer, which several Generation Sharing Agreement holders will welcome, Kachikwu says he will seem at the PSCs. He needs to look at restructuring the contracts to deal with the problems posed by diminished stability sheets as a consequence of $40 or $50 for each barrel oil. In distinct, holders of PSCs are searching to him to reduce the onerous efficiency bond requirement, which is protecting against several awardees from transferring forward with the advancement of their property. He desires to energise recovery and revenue expansion to boost profits for the government. Sector watchers are also expecting him to get the scissors to the hugely criticized and opaque “Strategic Alliance Agreements” with its subsidiary, NPDC.

Considerably is predicted of Kachikwu

Buhari’s hatchet man is not sleeping quite much. He understands the burden he is carrying on his shoulder. He states: “It is extremely intensive function quite calibrated perform. It is a new procedure of oil administration in the nation and obviously, providing fillip to Mr. President’s aspiration of taking the oil business back to exactly where it need to be.”

Buhari is expected to hold off the appointment of a Minister of Petroleum Methods for at least eighteen months, in get to give Kachikwu totally free reign in his restructuring method. That implies that Kachikwu will report straight to the President until finally a new Minister is appointed. Even then, the President’s strategies to break up NNPC into two, with one particular regulatory arm and yet another industrial arm may possibly suggest that the Kachikwu, based on which arm he stays with, could not even have to report to the Minister of Petroleum Methods when appointed.

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