Nigeria’s national oil company (NNPC) is undergoing a major shake-up as President Muhammadu Buhari has unbundled it into seven independent operational units, DailyPostNg reported. Oil Minister, Emmanuel Ibe Kachikwu, explained that five of the seven operational units would focus mainly on business, in line with global best practices of national oil sectors. The new units include Upstream, Downstream, Gas & Power, Refineries, Ventures, Corporate Planning & Services and Finance and Accounts.
Initially, the NNPC was to be broken up into 30 standalone units, but the plan was further revised.
The key reason for the restructuring of the 39-year old company is to get it to operate more profitably and transparently ahead of a proposed IPO of assets owned by the NNPC, scheduled to take place in 2018, Quartz Africa reported. Nonetheless, President Buhari has ruled out selling four refineries in the cities of Port Harcourt, Warri, and Kaduna.
Over the last decade, despite Nigeria’s vast earnings from oil exports, the company has been making losses. Last year alone, it recorded losses of $1.3b due to corrupted practices. President Muhammadu Buhari has made it his priority to restructure the NNPC and rid it of corruption that multiple probes have said is rampant. In line with his policy, Buhari disbanded the company’s board shortly after taking power in May and picked Kachikwu, a former Exxon Mobil Corp. Executive, to head the firm.