September 24, 2017

Nigeria’s state-run oil firm to be split

Nigeria’s anti-corruption crusade, under Muhammadu Buhari, has not spared the state-run oil company, which for decades has been dogged by corruption.

Following the new government’s intervention, as part of a massive overhaul, the state-run oil and gas firm, the Nigerian National Petroleum Corporation (NNPC),  is to be broken into 30 separate companies as part of wider plans to overhaul the corruption-ridden operation, according to the country’s junior oil minister, Emmanuel Ibe Kachikwu.

Kachikwu explained during the recent energy conference in Abuja, that the move was designed to make the Nigerian National Petroleum Corporation (NNPC) more efficient.

“For the first time we are unbundling the subset of the NNPC to 30 independent companies with their own managing directors,” said Kachikwu, who is also group managing director of the NNPC.

Titles like ‘group executive directors’ are going to disappear and in their place you are going to have chief executive officers and they are going to take responsibilities for their titles.”

In earnest, the reform of the NNPC began last year when President Muhammadu Buhari sacked the entire board and appointed Kachikwu, an experienced oil executive formerly with ExxonMobil.

Information credit: Adapted for African Mining Brief Online from a report from AFP

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