New NNPC GMD, Ibe Kachikwu, Begins Restructuring Nigeria’s National Oil Company, NNPC

New NNPC GMD, Ibe Kachikwu, Begins Restructuring Nigeria's National Oil Company, NNPC

The recently appointed Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu, has wasted no time in getting on with the cleanup and restructuring of NNPC. Slightly days into the job, the new GMD was hiring and firing in his multi-faceted approach to restructuring Nigeria’s public canvas company, the commodity that has been eaten by the canvas and gas assiduity. He intends to take the three angles to his restructuring docket in turn.

1. The People Phase in Restructuring NNPC

The first stage is what he calls the”People Aspect.”The GMD’s approach is to purify the top stratum of the Corporation, which has been described as a cesspit of corruption by critics. There’s no suggestion that all of those removed were involved in wrongdoing, but his view is that to get a clean launch at NNPC, you have to get new people in who know from the launch that it’s no longer business as usual.

Deciding in this part of the restructuring to let the dismissal fall where it may, Kachikwu has sacked all the former GEDs of the Corporation. The sacked GEDs of 8 directorates are
Mr Bernard Otti, GED Finance and Accounts;
.Dr. Timothy Okon, Acting GED Exploration and Production who also doubled as Fellow Corporate Planning & Strategy;
. Engr. Adebayo Ibirogba, Engineering and Technology;
.Dr. David Ige, Gas and Power;
.Ms. Aisha Abdurrahman, Commercial and Investment;
.Dr. Dan Efebo, Corporate Services;
. Engr. Ian Udoh, Refining & Petrochemicals;
.Dr. Attahiru Yusuf, Business Development.
As part of his restructuring docket, Kachikwu has reduced the 8 Directorates to 4. Finance has been intermingled with Services, Refining with Technology whilst Business Development, as well as Gas and Power, have been done down with altogether.

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The new GEDs of NNPC are
Dr. Maikanti Baru, Exploration & Production;
.Mr. Isiaka Abdulrazaq, Finance & Services;
. Engr. Dennis Nnamdi Ajulu, Refining & Technology;
.Dr. Babatunde Victor Adeniran, Commercial & Investment.
Other Nominees in the handpicking exercise which the Group General Manager, Group Public Affairs, said in a statement, was intended to turn the Corporation into a spare, practical, business- concentrated, transparent and responsible public canvas company, include the following nominees to head the NNPC accessories.
Mrs Esther Nnamdi-Ogbue, Managing Director, Channels and Products Marketing Company (PPMC);
. Engr. Chinedu Ezeribe, Managing Director, Warri Refining & Petrochemicals Company (WRPC);
.Mr. Babatunde Bakare, Managing Director, Nigerian Gas Company (NGC);
.Mr. Inuwa Ibrahim Waya, Managing Director, Hyson;
.Mr. Abubakar Mai-Bornu, Managing Director, Nigerian Petroleum Development Company (NPDC);
.Mr. Ladipo Fagbola, Managing Director, NNPC Retail;
.Mr. Rowland Ewubare, Managing Director, Integrated Data Services Ltd (IDSL);
.Mr. Modupe Bammeke, Managing Director, NNPC Parcels;
.Mr. Abdulkadir Saidu, Managing Director, Duke Oil;
.Mr. Dafe Sejebor, Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS).
Mr Chidi Momah has been appointed as Group General Manager, Company Secretary & Legal Adviser, a pivotal appointment given the GMD’s plans to look considerably at NNPC contracts, particularly those with dealers and also its everyday adventure mates.

In total, Kachikwu has removed 38 top operation staff and reduced figures from 122 to 83″ to jump-start a new business outlook to enhance the functional terrain as a profit-driven business as against the current civil service exposure.”
Among the top directors relieved of their duties were General Director (GM) Commercial, GM NNPC Retail, GM Deals and Marketing NNPC Retail, GM Operations NNPC.

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2. The Process Phase in the Restructuring of NNPC

Kachikwu is being clinically regular in his approach to restructuring the Corporation, which has been racked with corruption and reproach over the times. The coming stage of his battle to reform the Corporation will be about processes. In that phase, he intends to get a forensic inspection done. He said, “We’re going to put processes and controls in place. We’re going to do retraining and displacing, and also, we’re going to re-engage our majors and minors, all those who are active in the sector, for us to work as a platoon to take Nigeria forward.” Also, the man, who has been chosen to apply the dismissal in the President’s honourable intentions for the State pot, says, he’ll be suitable to say to the nation, “This is the state of the company.”

3. The Business Phase in Restructuring NNPC

Kachikwu’s plans in his three-phase design are to crown in a thorough review of the being contracts. He intends to use this stage to look at all the being contracts, which makes the Corporation’s legal counsel a crucial nominee in the process. He said, “The final stage will be the business stage, which will be looking at all the being contracts. Are they good? Are they okay? Do they need to bere-kitted and redone?”

In a move, which numerous Product Participating Contract holders will drink, Kachikwu says he’ll look at the PSCs. He wants to look at restructuring the contracts to deal with the challenges posed by reduced balance wastes as a result of$ 40 or$ 50 per barrel canvas. In particular, holders of PSCs are looking to him to reduce the onerous performance bond demand, which is precluding numerous awardees from moving forward with the development of their means. He wants to energise recovery and income growth to increase profit for the government. Assiduity watchers are also awaiting him to take the scissors to the largely blamed and opaque”Strategic Alliance Agreements” with its attachment, NPDC.
Important is anticipated of Kachikwu.

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Buhari’s hatchet man isn’t sleeping veritably much. He knows the burden he’s carrying on his shoulder. He says, “It’s veritably ferocious work; veritably calibrated work. It’s a new process of canvas administration in the country and obviously, giving a fillip to. President’s dream of taking the canvas assiduity back to where it should be.”
Buhari is anticipated to delay the appointment of a Minister of Petroleum Coffers for at least 18 months in order to give Kachikwu free reign in his restructuring process. That means that Kachikwu will report directly to the President until a new Minister is appointed. Indeed also, the President’s plans to resolve NNPC into two, with one nonsupervisory arm and another marketable arm, may mean that the Kachikwu, depending on which arm he stays with, may not indeed have to report to the Minister of Petroleum Coffers when appointed.


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