Nigeria’s Minister of State for Petroleum, Ibe Kachikwu, has stated that president Muhammadu Buhari has approved the unbundling of the NNPC into four autonomous companies.
“Right now I have just received the president’s approval to embark on the final phase of the restructuring we are doing,” he said at a town hall meeting in Abuja.
“That restructuring effort will unbundle this company into four key components: the upstream company, the downstream company, midstream company which is the gas and power company and then of course, the refining group holding company.”
“All of them would operate independently with quasi-managing directors and remit profits and taxes to the coffers of the government,” he said.
“A lot of the non-performing but asset-based subsidiaries that we have, we will put them into a venture company where we will begin to help manage them to profitability and hopefully either spin them off ultimately or make them so profitable that we may decide to keep them.
He further explained that the effect of the restructuring would enable NNPC to focus on individuals who will lead as quasi-managing directors to run the entities with the aim of delivering profits for the organisation.
“This is the sort of financial model that we are going to be dealing with over the next few months and trying to set up a performance index that is comparable with the very best in the world,” he explained.