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

The newly appointed Group Managing Director (GMD) of the Nigerian National 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 brand new GMD was hiring and firing in his multi-faceted strategy to restructuring Nigeria’s nationwide oil firm, one thing that has been welcomed by the oil and gasoline industry. He intends to take the three sides to his restructuring agenda in turn.

1. The Folks Phase in Restructuring NNPC

The primary stage is what he calls the “Folks Facet.” The GMD’s strategy is to purge the highest echelon of the Corporation, which has been described as a cesspit of corruption by critics. There is no such thing as a suggestion that each one of these removed have been involved in mistaken doing however his view is that to get a clear start at NNPC you have to get new people in who know from the start that it is not business as regular.

Deciding on this part of the restructuring to let the axe fall where it may, Kachikwu has sacked all the previous GEDs of the Company. U-tube heat exchanger The sacked GEDs of 8 directorates are:

– Mr. Bernard Otti, GED Finance and Accounts;
– Dr. Timothy Okon, Performing GED Exploration and Manufacturing who also doubled as Coordinator Company Planning & Technique;
– Engr. Adebayo Ibirogba, Engineering and Technology;
– Dr. David Ige, Gasoline and Energy;
– Ms. Aisha Abdurrahman, Industrial and Investment;
– Dr. Dan Efebo, Corporate Providers;
– Engr. Ian Udoh, Refining & Petrochemicals;
– Dr. Attahiru Yusuf, Enterprise Improvement.

As a part of his restructuring agenda, Kachikwu has decreased the 8 Directorates to four. Finance has been merged with Companies, Refining with Techonology while Enterprise Development as well as Gasoline and Power have been achieved 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, Business & Investment.

Other appointees in the culling train which the Group General Supervisor, Group Public Affairs, mentioned in a press release, was intended turn the Corporation right into a lean, environment friendly, enterprise-focused, clear and accountable nationwide oil firm, embrace the next appointees to head the NNPC subsidiaries:

– Mrs. Esther Nnamdi-Ogbue, Managing Director, Pipelines and Merchandise Advertising and marketing Firm (PPMC);
– Engr. Chinedu Ezeribe, Managing Director, Warri Refining & Petrochemicals Firm (WRPC);
– Mr. Babatunde Bakare, Managing Director, Nigerian Gas Firm (NGC);
– Mr. Inuwa Ibrahim Waya, Managing Director, Hyson;
– Mr. Abubakar Mai-Bornu, Managing Director, Nigerian Petroleum Improvement Firm (NPDC);
– Mr. Ladipo Fagbola, Managing Director, NNPC Retail;
– Mr. Rowland Ewubare, Managing Director, Built-in Knowledge Providers Ltd (IDSL);
– Mr. Modupe Bammeke, Managing Director, NNPC Properties;
– Mr. Abdulkadir Saidu, Managing Director, Duke Oil;
– Mr. Dafe Sejebor, Group General Manager, Nigerian Petroleum Funding Administration Providers (NAPIMS).

Mr Chidi Momah has been appointed as Group Basic Supervisor, Company Secretary & Legal Adviser, an important appointment given the GMD’s plans to look extensively at NNPC contracts, notably these with traders and likewise its joint enterprise companions.

In total, Kachikwu has axed 38 high management employees and lowered numbers from 122 to 83 “to jump-start a brand new enterprise outlook to boost the operational atmosphere as a revenue-pushed enterprise as in opposition to the present civil service orientation.”

Amongst the top managers relieved of their duties were: Basic Manager (GM) Commercial, GM NNPC Retail, GM Gross sales and Marketing NNPC Retail, GM Operations NNPC.

2. The process Phase within the Restructuring of NNPC

Kachikwu is being clinically methodical in his method to restructuring the Corporation, which has been racked with corruption and scandal over the years. In the following stage of his battle to reform the Corporation will probably be about processes. In that phase, he intends to get a forensic audit accomplished. He said: “We are going to put processes and controls in place. We are going to do retraining and repositioning after which, we’re going to re-have interaction our majors and minors, all those who are active within the sector, for us to work as a crew to take Nigeria forward.” Then the man, who has been chosen to wield the axe in the President’s laudable ambitions for the State company, says, he will be able to say to the nation: “That is the state of the company.”

Three. The Enterprise Section in Restructuring NNPC

Kachikwu’s plans in his three-phase undertaking are to culminate in a thorough assessment of the prevailing contracts. He intends to use this stage to look at all the prevailing contracts, which makes the Corporation’s authorized adviser, a key appointee in the process. He said: “The ultimate stage would be the enterprise stage, which will be trying in any respect the existing contracts. Are they good? Are they okay? Do they need to be re-kitted and redone?”

In a transfer, which many Production Sharing Contract holders will welcome, Kachikwu says he will look at the PSCs. He wants to have a look at restructuring the contracts to deal with the challenges posed by diminished balance sheets because of $forty or $50 per barrel oil. In particular, holders of PSCs are looking to him to scale back the onerous efficiency bond requirement, which is stopping many awardees from transferring forward with the event of their belongings. He needs to energise recovery and revenue growth to increase income for the government. Industry watchers are additionally expecting him to take the scissors to the highly criticized and opaque “Strategic Alliance Agreements” with its subsidiary, NPDC.

A lot is anticipated of Kachikwu

Buhari’s hatchet man is just not sleeping very a lot. He knows the burden he is carrying on his shoulder. He says: “It is rather intensive work; very calibrated work. It is a brand new process of oil administration within the nation and obviously, giving fillip to Mr. President’s dream of taking the oil trade again to the place it must be.”

Buhari is expected to delay the appointment of a Minister of Petroleum Sources for at least 18 months, in order to present Kachikwu free reign in his restructuring course of. That means that Kachikwu will report on to the President till a brand new Minister is appointed. Even then, the President’s plans to break up NNPC into two, with one regulatory arm and another industrial arm may mean that the Kachikwu, depending on which arm he stays with, might not even should report to the Minister of Petroleum Assets when appointed.

The long-awaited restructuring of NNPC has lastly begun in earnest. Because the industry appears to be like on, it actually seems that in Kachikwu, Nigeria’s new President, has found somebody equal to the task of cleansing up Nigeria’s scandal ridden state oil company.

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