NNPC BROKEN INTO 7 DIVISIONS, 20 SUBSIDIARIES [DETAILS]

The Nigerian National Petroleum Corporation has finally been unbundled by the Federal Government into seven divisions- which comprises of 20 subsidiaries.

The Minister of State for Petroleum Resources and Group Managing Director of the corporation, Dr. Ibe Kachikwu, made the disclosure while speaking to journalists in Abuja on Tuesday.


Kachikwu also made it known that chief executive officers had been appointed for the 7 business divisions of the corporation while stating that they would all report to him.

Bello Rabiu was appointed head of Upstream division; Henry Ikem-Obih, Downstream; Anobor Kraga, Refineries; Saidu Mohammed, Gas and Power; and Babatunde Adeniran, Ventures.

Isiaka Abdulrazaq was appointed Group Executive Director, Finance and Accounts, while Isa Inuwa was named as the Executive Head, Corporate Services, NNPC.

“The President has approved the final phase of restructuring of the NNPC. Under that phase, we have five business-focused divisions – the upstream, which you used to call E&P (exploration and production); the downstream; the gas power marketing, which is a pull-out from the E&P; the refineries group, which is basically for all the three refineries; and then of course the ventures for every other little company that is here and there, thrown all over the place that doesn’t seem to have a sense of direction.”

“So, the ventures will to act like the incubation centre where you nurture these companies through management, get them very efficient and then decide whether you want to spin them off to be on their own independently, or whether you want to throw them to the stock exchange. So, when I hear unbundling into 30 companies, that is not correct.”

“If you look at the companies that will come underneath these divisions, we have a total of 20 firms on the whole. We had about 15 before, so only about four or five are new introductions. These subsidiaries are already there, we only added a few. Among those earlier divisions that I’ve given you, we also have finance and services, and that brings it to seven divisions. But five are business-focused, while the others provide services.”

“Why are we doing this? It is because quite frankly, the NNPC is very over-staffed. So, we have to create work in order to ensure that everybody who is in the system will be busy and earn money. And as we began to do that, we realised suddenly that we had adequate staff and we are not really as over-staffed as we thought initially. So, the principle of our restructuring, which was approved by the President, is that nobody losses their work.”

“We have so much property in Nigeria that sometimes we don’t even know where they are. In some cases, we found out that some property had been encumbered and nobody followed up on them. This was because it wasn’t a business, it was just an allocation to do an office, which didn’t happen and so it was just there.”

“Shell, for example, recently passed back to us a huge complex in Warri, which used to be their headquarters. And then, you have that and you have an entity, for example, the NPDC saying they want to build a head office.”

Speaking on why there were still pockets of fuel queues around the country, Kachikwu said:

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