The Federal Government has on Tuesday approved the unbundling of the Nigerian National Petroleum Corporation (NNPC) into seven independent operational units.
The Minister of State for Petroleum Resources, Ibe Kachikwu, who announced the unbundling of the national oil company in Abuja, said five of the seven operational units will be strictly business-focused in line with global best practices of national oil companies.
The seven new units include those for Upstream, Downstream, Gas and Power, Refineries, Ventures, Corporate Planning and Services, and Finance and Accounts.
Kachikwu said each of the units would be headed by Chief Executive Officers; namely Bello Rabiu for Upstream; Henry Ikem-Onih for Downstream; Anibor Kragha (Refineries); Saudu Mohammed (Gas and Power), while Babatunde Adeniran takes charge of Ventures.
Isiaka Abdulrazaq would be the Group Executive Director in charge of Finance and Services, while the Executive Head, Corporate Services will be Isa Inuwa.
All appointments, according to Kachikwu, are with immediate effect.
Kachikwu also pointed out that nothing much had changed with the unbundling except for the distribution of subsidiary companies of the corporation that would further be restructured into direct management of the new divisions.
He said the restructuring was the only opportunity available to the NNPC to become productive again, adding that employees of the corporation would have to work to earn their wages going forward.
While giving assurance that nobody would lose his/her job with the new restructuring, Kachikwu said people are going to get busy in the respective business units and it is a chance for anybody who wants to progress in his career and prove himself to rise up and get what he/she wants.
A breakdown of the subsidiaries under the Upstream division include: the Nigerian Petroleum development Company (NPDC) and Integrated Data Services Limited (IDSL).
For Downstream Retail division: Nigerian Product Marketing Company (NPMC), which was formerly PPMC; Gas and Power: Nigerian Gas Pipeline and Transportation Company (NGPTC), Nigerian Gas Marketing Company (NGMC), and gas and power investment.
Divisions for the Refineries include: Warri Refining and Petrochemical Company (WRPC), Kaduna Refining and Petrochemical Company (KRPC), and Port Harcourt Refining and Petrochemical Company (PHRC).
The ventures’ company includes medicals, property, pensions, shipping, and wheel insurance.
Minister Kachikwu also stressed that he was misquoted by some sections of the media last week, which reported him as saying the Nigerian National Petroleum Corporation, NNPC, would be unbundled into 30 different profit-making companies, with each of the thirty companies having its own managing director.
He reiterated that he was only referring to the “subsets” of the state oil firm which are the subsidiaries.