Kachikwu Moves to Fix Rough Edges of NNPC

 

The Nigerian National Petroleum Corporation, NNPC has said that the various business models of the Corporation is undergoing a radical transformation in order to make it remain as a business concern in the face of global dip in crude oil prices.

Kachikwu Moves to Fix Rough Edges of NNPC

The Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu said some of the pragmatic measures taken so far is to reduce cost and restructure the corporate center of the NNPC.

Dr. Kachikwu made this known while inaugurating the NNPC Restructuring War Room to expeditiously monitor and track the transformation journey of the Corporation.

He said that his vision is that by January, Nigerians should begin to see a different NNPC with a different mindset of efficiency and profitability.

According to him, the Corporation would navigate on a war zone in the next six months stressing that the management would deploy the right skills at the right locations for all operations.                                         

Presenting a paper on the transformation journey of the NNPC titled: “Stop the Bleeding, Shine the Light: Accelerating NNPC’s Restructuring”, the Senior Technical Assistant to the GMD, Mr. Yemi Adetunji said that the restructuring process would urgently address challenges confronting all the Strategic Business Units and Corporate Service Units of the Corporation.

Mr. Adetunji highlighted that the process would lead to renegotiation of existing contract including Production Sharing Contracts, strengthen subsidy management, boost pipeline security and enhance transparency and accountability.

Speaking in similar vein, the Acting Group General Manager Information and Technology Division and SAP, Mr. Danladi Inuwa informed that information technology would play a critical role in the transformation journey of the Corporation.

On his part, the General Manager Information System Department, Mr. Muhammad Usman speaks more on the role of ISD in the process.

Throwing more light on the transformation journey in the NNPC Retail Limited, the Managing Director of the Company, Mr. Ladipo Fagbola said that the company is poised to expand its operations all through the 774 Local Government Areas of the country.

The Corporation is currently executing “20 Fixes” project which identified 20 critical issues that need to be addressed in order to re-position the 37 years old national oil corporation on the track of efficiency and profitability.

The target include: Reduce and audit cost, restructure corporate centre and staffing, renegotiate existing contracts, including PSCs, streamline subsidy management, boost pipeline security, enhance transparency and accountability, achieving zero tolerance for corruption, rebrand NNPC and unbundle PPMC.

Other initiatives include: Unbundling of the Nigerian Gas Company, reduce contracting Cycle, restructure refineries, improve information technology to drive business, embed staff and business performances management, restructure JV funding and reduce Cash Call, improve retail profitability , deploy and attract focused investments, re-kit NPDC, expand crude marketing and  generate power profitability.

 

Categories: NNPC Nigeria

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