Energy
Experts set agenda for new NNPC GMD
OREDOLA ADEOLA
Stakeholders in the oil and gas industry have set agenda for Mr. IbehKachikwu, the new Group Managing Director of Nigerian National Petroleum Corporation, NNPC, who took over from Dr. Joseph Dahwa last week following a directive by the President MohammaduBuhari.
This call is coming after the new NNPC helmsman reduced the erstwhile directorates in the corporation from eight to four, with the sack of all Group Executive Directors (GEDs) .
The shakeup led to the appointment of Dr. M.K. Baru for the Directorate of Refining and Engineering; Dennis Nnamdi, (Exploration and Production); BankoleKomolafe, (Commercial Investment); and AbdulrazakIsiaka (Finance).
Directed by the President to initiate measures to rid the NNPC system of corrupt elements, and work with the Economic and Financial Crimes Commission (EFCC) and the Department of State Services (DSS) to trace and recover all stolen oil funds, the new NNPC helmsman has, among others important roles, been tasked to reposition the oil behemoth and make it a profitable venture.
Kachikwe, is also expected to review the structure of the NNPC to make it competitive, globally; give targets to all subsidiaries; put in place performance benchmarks, and fix all refineries to ensure that they work at optimal level, “even if it means using expatriates in the interim.”
Described as a highly respected professional in the private sector with requisite experience to drive the corporation, the stakeholders, however lauded the efforts of the President Buhari to select an industry professional that can effectively institute the right reform urgently needed in the corporation.
According to Mr. SeyiOdetola, an economist based in United Kingdom, the new GMD has the task of repositioning the corporation. He said , ”Kachiwu must bring his vast experience in private sector of the oil industry to bear on this new assignment as GMD. He however charged him to prove his competency by justifying the confidence reposed on him.
‘’Kachikwu will have to reestablish standard practices and value within the corporation. One of which is also to restore renewed confidence in fixing the four refineries in Warri, Port Harcourt and Kaduna. He must be willing to fix all the cash-call issues which have affected the operations of the Joint Ventures, JV with the International Oil Companies. He will also need to review the management of NNPC’s oil sales which has worsened especially on the oil swap deals.
”Coming from a private sector that is completely driven by achieving corporate goals and ethics, the GMD has the huge task of cleansing the corporation and instituting technical framework. He must be determined to return the corporation to its glorious days, where NNPC staff are seen as professionals.” Odetola noted.
According to Professor WumiIledare, an industry expert, the overlapping functions of NNPC which the new helmsman had dissolved into four are commendable. He also noted that eight directorates of the corporation had been allowed to float due to the illogical consideration given to the six geopolitical zones.
He further noted that the specific function of the four units of the corporation would have to be managerial, commercial and investment sections. While the order unit would effectively supervise the refinery and petro-chemical to take care of the product refined.
He, however charged the Federal government to give the new GMD, a functioning board that does not behave as an executive board. According to him, the board must be devoid of any political interference except of course the intervention of the President who appointed the GMD.
He also suggested that the GMD be made a surrogate adviser to the President on oil and gas industry performance. This according to him, was the mistake made by the last administration, which gives so much power to the Minister.
Iledare, further recommended that the new GMD was empowered by the President to set up a technical board to properly lay a strong foundation for the entire oil and gas sector which must not be political denominated. According to him, the oil and gas sector can be competitive if built on a proper foundation.
He said, ”in the last five, we had an administration where all the various arms of the petroleum industry were coalesced under the individual supervision of the Minister of Petroleum Resources. This was responsible for the decline in the key performance indicator of the sector were going down.
He however noted the NNPC act which is a product of a decree, had been abused in the past due to politic interference. He charged that the NNPC professional, who are respected world-over, should be allowed to work independent of undue interference.
