FG’s unbundling of NNPC will starve off investors, says PENGASSAN

Acting General Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Lumumba Okugbawa, has said that the unbundling of the NNPC by the government would be tantamount to policy summersault on the part of the government

He said the unbundling would stave off investors from the nation’s oil and gas industry at this time when the nation needs foreign investment most to grow the industry, which currently is the mainstay of the economy.

Speaking further, Okugbawa explained that the government did not take into consideration the existing law that established the NNPC before planning to unbundle the corporation.

 “For the government to do anything with the current NNPC, the Act must either be repealed or amended to accommodate the planned restructuring. If not done, it will be equal to lack of respect for the rule of law on the part of the government.”

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Speaking further on the issue, Okugbawa said the Petroleum Industry Bill (PIB) that is expected to be the legal instrument for the ongoing reforms of the Oil and Gas industry would be meaningless if the Government should introduce plans outside the reforms.

“Above all, the various stakeholders, especially the unions should be involved before any major change is carried out in the organisation and before any unilateral statement capable of heating up the industrial climate is made.” He said

The federal government gave its approval on last Tuesday for the unbundling of the Nigerian National Petroleum Corporation into seven independent operational units.

According to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, five of the seven operational units will be strictly business-focused in line with global best practices of national oil companies.

He listed the new units:  Upstream, Downstream, Gas & Power, Refineries, Ventures, Corporate Planning & Services and Finance and Accounts.

Each of the units, Kachikwu said would be headed by chief executive officers, namely Bello Rabiu for Upstream; Henry Ikem-Onih (downstream); Anibor Kragha (Refineries); Saudu Mohammed (Gas & Power), while Babatunde Adeniran, Ventures.

The Group Executive Director in charge of Finance & Services would be Isiaka Abdulrazaq, while the Executive Head, Corporate Services will be Isa Inuwa.