Editorial
Task Before The New NNPC Boss
The much-canvassed plan to restructure
and reform the Nigerian National
Petroleum Corporation (NNPC) may have commenced with the appointment of a private sector-groomed personnel, Dr Emmanuel Ibe Kachikwu, as the new Group Managing Director (GMD). Already, eight Group Executive Directors have been sent on compulsory retirement.
A statement by the Group General Manager, Public Affairs, Ohi Alegbe, said the new GMD also announced the restructuring of the directorates from eight to four: Refining and Engineering, Exploration and Production, Commercial and Investment, and Finance.
On appointment, Dr Kachikwu was charged to rid the corporation of institutionalised corruption and dubious accounting practices, while strengthening it to efficiently deliver on its mandates to the people of Nigeria as a world-class oil and gas company guided by global best practices.
The charge by President Muhammadu Buhari may not be unconnected with recent perception that the corporation is enmeshed in high profile corruption and riddled with inefficient management of the country’s oil and gas resources and assets.
The on-going action can best be appreciated when one understands that the NNPC is the biggest public corporation in Nigeria; it holds and manages the nation’s stake in the joint venture holdings with all oil and gas firms operating in the country. It is crucial for the revival of the economy and the transformation of the Niger Delta region.
Indeed, the new GMD needs to put in place a new template to drive the transformation agenda. We think that Kachikwu needs to work assiduously to actualize the vision of change and end the endemic corruption being alleged in the corporation. In fact the four refineries in Port Harcourt, Warri and Kaduna must operate at optimum capacity and bridge the yawning gap in domestic petroleum products supply.
Pragmatic steps must also be taken to ensure that additional refineries are built in the short and long term to increase the nation’s refining capacity and reduce dependence on the importation of products that would also check corruption and create more jobs.
Also pressing is the need to swiftly address the mismanagement of the domestic crude allocation (DCA) regime, opaque revenue retention practices as well as the corruption-ridden oil-for-product swap agreements. The issue of discretionary spending from crude oil sale revenues without recourse to the Federation Account must also be reviewed.
Nigerians also need action on the unbalanced offshore processing agreements (OPAs), unsustainable fuel subsidy regime, inability to develop commercially viable operational capacities, and reluctance to facilitate robust growth of the sector through external investments. In fact the GMD must work towards the passage of the Petroleum Industry Bill (PIB), which has been in the pipeline for 15 years, to clear the way for mutually beneficial investments in the oil and gas sector.
Also begging for action is the rising crude oil theft and its attendant negative impact on the average sale of government equity crude, with an average joint venture cash call budget of about $600million per month, so as to rescue the nation from the drop of earnings from crude, which now stands at an average of about $460million per month.
The new NNPC boss must implement the gas master-plan that should fully utilise abundant reserves to domestic and commercial uses. With the nation’s gas reserve put at 46 trillion standard cubic feet (tscf), and the possibility of unlocking abandoned 133 tscf, it can generate 32 gigawatts electricity to boost Nigeria’s energy requirements with 7.3billion standard cubic feet (BSCF) of gas, and address the age-long power challenge.
Perhaps also important is the Nigerian Content Law that is yet to be achieved, as many multinational oil and gas companies are yet to implement measures to ensure that they relocate their headquarters to the Niger Delta and encourage Original Equipment Manufacturers (OEMs) to domicile their manufacturing plants in the Niger Delta among others.
Finally, The Tide insist that the reform in the oil and gas sector should make meaningful impact on the Niger Delta; if its people are not empowered through more jobs, viable contracts, and sustainable development projects to bridge gaps created by many years of pollution, neglect and abandonment, the industry may not achieve set goals.
Editorial
HYPREP And The Collapsed Water Tank
Editorial
Resurgence Of Illegal Structures In PH
Editorial
Certificate Forgery, Loss Of Public Trust
-
Featured2 days agoOil & Gas: Rivers Remains The Best Investment Destination – Fubara
-
Nation3 days agoOgoni Power Project: HYPREP Moves To Boost Capacity Of Personnel
-
Nation3 days ago
Hausa Community Lauds Council Boss Over Free Medical Outreach
-
Nation3 days ago
Association Hails Rivers LG Chairmen, Urges Expansion Of Dev Projects
-
Nation3 days ago
Film Festival: Don, Others Urge Govt To Partner RIFF
-
Nation2 days ago
MOSIEND Calls For RSG, NDDC, Stakeholders’ Intervention In Obolo Nation
-
News2 days agoNDLEA Arrests Two, Intercepts Illicit Drugs Packaged As Christmas Cookies
-
Rivers3 days ago
UNIPORT Moves To Tackle Insecurity … Inducts Security Experts
