Buhari sets to unbundles NNPC into two independent units

President Muhammadu Buhari at the weekend revealed plans to split the Nigerian National Petroleum Corporation (NNPC) into two entities. This was disclosed by the presidential spokesman, Mr Femi Adeshina.

This according to the government is parts of measures to properly make the corporation more transparent and accountable.

According to the Presidential spokesman, President Buhari will soon split the NNPC into two entities. He added that one of the one will be an independent regulator while the other will act as an investor vehicle.

Mr. Adesina, however did not give the timeline when the directive would be functional.

 Further investigation show that with the new development the corporation is expected to hand over its oil revenue to the federal government, which then pays back what the firm needs based on a budget approved by parliament.

It would be recalled that the same pronouncement had been initiated during the administration of the Late Umaru Musa Yar’Adua, in 2008, which was later retracted following the alleged constitutional breaches it could have caused.

The 6th National Assembly rejected the unbundling of the corporation by Yar’Adua administration on the ground that it fell short of due process.

The assembly had asked the late President to present the directives to the National Assembly as a bill.

According to a corporation source who would not want his name in prints, the new development would make it impossible for the corporation to solely pay for the petroleum products subsidy.

He added that the move would also consolidate all the policy and regulatory roles of the corporation within the industry.

He also noted that the one of the new entities would function as a profit making business with capacity to raise funds, take loans and make investment decisions without the directive from the Federal Government, while the other would act as a regulatory authority.

He further noted that the unbundling is not a guarantee that the new entities would be free from corruption as it would still require the intervention of the government.

He also confirmed that the presidential directive remains a pronouncement as it has to be vetoed by the National Assembly before it could become an act.

Adding that the corporation was a product of Decree 33 which is now an Act of National Assembly.

The corporation owns interests in oil and gas exploration, manages the energy sector and it regulates the country’s oil and gas sector.

It has over many years being covering its costs before remitting funds to the government.

Attempt to reach the NNPC spokesperson, Mr Ohi Alegbe as at the period of filling this report proved abortive as his line was not connecting.