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Saturday, August 15, 2015

NNPC: More officials may go - GMD

The Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC, Dr. Emmanuel Kachikwu, said yesterday that the reforms in the corporation would run its full course until total sanity was achieved.

Kachikwu

To realize this objective, Kachikwu stated that more officials would have to be relieved of their duties.

The new GMD, who spoke with State House correspondents in Abuja after a meeting with President Muhammadu Buhari also stated that the corporation would be run like a money-making venture to generate returns for Nigeria.

He said: "It is an A to Z restructuring. I have done the first three layers which has to do with the GEDs and General Managers. You are going to have a lot more now, the DGs and GMs will take it to the next layer which is the lower layer.

"The whole idea is to go back to being able to look at the appraisals, how well, you have done on the job that you have done and if you have done very well how do we elevate you to positions where you can offer more service. If you have not done well enough and we can retrain you, we will, but if you have not done well enough and there is no possibility of retraining, we let you go.

"At the end of the day, NNPC isn't a public service, it is a corporation and it is going to be run like a company, generating money and profit for Nigerians. So, the whole concept of anything goes is going to stop and this is the first stage in that whole process."

Kachichwu also said he had adopted a three-pronged approach in the "cleansing" of the NNPC.  He also stated that a new NNPC was set to emerge after the reforms.

He said: "It is a three-pronged process that I am following. There is a people aspect which we are dealing with now, there is a process after the people at the right places. We are going to get a forensic audit done so that we know clearly, not the one PW did but the proper forensic audit that will cover us all the way to 2014,2015, and we will be able to say to you this is the state of the economy.

"We are going to put processes and controls in place, we are going to do retraining and repositioning and then we are going to engage our majors and minors, all those who are active in the sector for us to work as a team trying to take Nigeria forward.

"The final stage will be the business stage. Looking at all the existing contracts: are they good? Are they okay? Do they need to be redone? Look at the PSCs, what do we do going forward? Look at the challenges posed by very reducing balancing sheet as a result of $50 or $40 per barrel for dark oil, what do we do to energise recovery and the income growth so that the government will have money to work with?

"It is a very intensive and calibrated work, a lot of us are not spending time sleeping, but over the next five, six moths you will begin to see a new emergence in the NNPC, a new process of oil administration in the country and obviously giving fillip to Mr President's dream of taking the oil industry back to where it should be.

"I think the new NNPC that you are going to see going forward will be a different institution all together."

Also responding to a question of what becomes the joint account system in view of the presidential directive to run a single treasury account, Kachikwu said all that was being looked into.

He said: "All that is being looked at, because to run an oil company you need a lot of funds to do it. If you don't, you will close down the corporation and the production system will close down.  You cannot throw away the baby with the bath water."

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