By Ikenna Omeje

Introduction
With the war still raging in Ukraine, inflation rising globally, and the poor state of Nigeria’s infrastructure, the numbers aren’t looking good for Africa’s largest economy. So, there’s an urgent need for landmark changes in the country’s approach to the economy and its national policies. Hoping the administration gets this strategic tweaks right, the hydrocarbon-rich country may reduce the impact from the worsening economic global headwinds.
Already, the National Bureau of Statistics released the current inflation rate, pegging it at 17.75 for June 2022. The effect is already being felt by the nation’s growing population that is heavily dependent on import. With a Gross Domestic Product just a little over 500billion US dollars, compared to 20 trillion US dolars of the United States, the more than 200 million-population country has now reached 100 billion US dollars in its public debt as at March 2022, according to the Debt Management Office.
While IMF had projected that by 2026, 100 per cent of Nigeria’s revenue will be used to service debt, Bloomberg reports that the country, alongside Egypt and Kenya, recently had their bonds fall into distress territory.
Beyond passing the Petroleum Industry Act, the President Muhammadu Buhari administration has moved on to implementation, particularly as regards the national oil company – Nigeria National Petroleum Corporation, which is now NNPC Limited. This is expected to set the pace for massive revenue inflow as the fully commercialized entity will at all times be profit oriented, seeking avenues to make the most of the country’s assets entrusted to it.

Reflection
The discovery of oil in Nigeria dates back to 1956 when Shell-BP discovered oil at Oloibiri in the present day Bayelsa State. To play actively in exploration and production of oil and gas in the country, the Federal Government established the Nigerian National Petroleum Corporation (NNPC) in 1977.

By the law that created it, the company manages the government stakes in Joint Venture partnerships with International Oil Companies (IOCs) such as Shell Plc, Chevron, ExxonMobil, TotalEnergies, Agip, among others. Through the partnerships with these companies, the Federal Government conducts petroleum exploration and production.
The unveiling
However, as a corporation, the company was not profit-oriented and could not maximize its potentials to become a global energy giant like Saudi Aramco, Equinor ASA, Shell Plc, Chevron, ExxonMobil, TotalEnergies, among others.

Realizing this deficiency, the government through the Petroleum Industry Act (PIA), has changed its governance structure from a corporation to a limited liability company, empowering the company to operate as a commercial independent entity, changing its name from the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company (NNPC) Limited.
President Muhammadu Buhari on July 19, 2022, unveiled the new NNPC Limited, affirming that the company is mandated by law to ensure that Nigeria’s National Energy Security is guaranteed.
Buhari noted that the new NNPC Limited, which is now Africa’s largest National Oil Company (NOC) would also support sustainable growth across other sectors of the economy as it delivers energy to the world.
He expressed optimism that the NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).

President Muhammadu Buhari

‘‘This is a landmark event for the Nigerian oil industry,” Buhari said. ‘‘Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements.
‘‘We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.
‘‘By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on the 1st July 1977. Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector.
Buhari assured stakeholders in the industry that the company will adhere to its fundamental corporate values of Integrity, Excellence and Sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.
Also speaking at the event, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that with the signing of the PIA, which assures international and local oil companies of adequate protection for their investments, the nation’s petroleum industry is no longer rudderless.

We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.

Sylva expressed optimism that with the unveiling of the NNPC Limited, there is no doubt that the leadership of the brand new company has what it takes to meet the high expectations of Nigerians and would-be investors.
“One of the magnanimous provisions of the PIA is the transition of the NNPC into a fully commercial entity, which will be a Limited Liability Company incorporated under the Companies and Allied Matters Act (CAMA), to be known as the Nigerian National Petroleum Company Limited, ” he said.
‘‘From the onset of this administration, Mr. President never concealed his desire to create a more conducive environment for growth of the oil and gas sector, and addressing legitimate grievances of communities most impacted by extractive industries.
‘‘While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50 billion worth of investments. In fact, between 2015 and 2019, KPMG states that “only 4 percent of the $70 billion investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.
‘‘We are setting all these woes behind us, and a clear path for the survival and growth of our petroleum industry is now before us,’’ the Minister stated.
NNPC Limited is currently the largest asset holder across all the value chain in the Nigerian oil and gas industry. Though a traditional oil and gas entity, it is transitioning towards becoming an integrated energy company with an interest in power generation and transmission.
The company’s strategy is to enhance its upstream production, expands its gas processing and transportation services for domestic consumption, and exports. It also intends to revamp and expand its refining assets portfolio through greenfield projects with chemicals production integration and leverage equity partnerships. This, the company believe, will ensure it has sufficient capacity to meet local and international demand for premium energy products and services. The unveiling of the new NNPC Limited is expected to engender growth and development of the Nigerian oil and gas industry, and open new era for partnerships.

Transparency: EITI supporting company
As part of the NNPC’s measures to increase the level of transparency in its operations, the company became an EITI supporting company in August 2020, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners who commit to observing the EITI’s supporting company expectations.
In June 2020, it published audited accounts for 20 of its subsidiaries. The company also publishes monthly financial and operations report on its website for public consumption, in national dailies and online media as part of efforts to be more accountable. The NNPC has been working with the Nigeria Extractive Industries and Transparency Initiative (NEITI) on an action plan to routinely disclose information. It currently publishes some of the data required by the 2019 EITI Standard on its website.
“Becoming an EITI supporting company aligns with NNPC’s corporate vision and principles of transparency, accountability and performance excellence. Our partnership with NEITI and EITI strengthens our commitment towards commodity trading transparency, contract transparency and systematic disclosure of revenues and payments. We are on a journey towards greater transparency and look forward to deepening our collaboration with the EITI to further this work,” the CEO of NNPC Mele Kyari had said.

Transparency is a fundamental business principle. Becoming an EITI supporting company, experts say, would help NNPC to make progress.
Welcoming the national oil company to EITI, Board Chair, Helen Clark, said: “NNPC plays a vital role in Nigeria’s economy. Joining the EITI as a supporting company is a welcome step in the NNPC’s journey toward achieving greater transparency and to help ensure that Nigeria’s citizens benefit from their natural resource wealth.”
EITI explained that NNPC adherence to what is expected of an EITI supporting company, will increase transparency in its revenues and payments to government; contracts governing petroleum exploration and production; and consolidated group-level financial statements.
“Increased transparency of Nigeria’s national oil company revenues is contributing to improvements in our country’s domestic resource mobilisation efforts,” said Nigeria’s Minister of Finance, Budget and National Planning , Zainab Ahmed.

Our partnership with NEITI and EITI strengthens our commitment towards commodity trading transparency,

Zainab Ahmed

According to the former NEITI Executive Secretary, Waziri Adio, “NNPC joining the EITI as a supporting company is a major inflection point in the quest for transparency – for the company, for Nigeria’s oil and gas sector, and for the country as a whole. This is so given how critical NNPC is to the sector and to the country. NEITI welcomes this bold commitment. We will continue to work and walk with NNPC to translate its espoused commitments to transparency and accountability into concrete and sustained actions and results.”

CAMA registered company
NNPC Limited received Certificate of Incorporation in September 2021, and became a limited liability company, effective from July 1, 2022, under the Companies and Allied Matters Act (CAMA).
Section 53(1) of the PIA, requires the Minister of Petroleum Resources to effect the incorporation of the NNPC Limited within six months of the enactment of the PIA. This was done in consultation with the Minister of Finance on the nominal shares of the company.
As a limited liability company, NNPC is now liable to pay taxes and dividends to its shareholders. Just like other incorporated entities under CAMA, the company is required to declare dividends to its shareholders and ensure retention of 20 per cent of its profit as retained earnings to sustain growth of its business. NNPC Limited as a registered company regulated by CAMA, will be operating commercially.
‘‘The provisions of PIA 2021, have given the Nigerian petroleum industry a new impetus, with improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent National Oil Company that will operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement and Fiscal Responsibility Acts,” Buhari noted at the unveiling of the new NNPC Limited.
‘‘It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.”
Government parastatals are usually controlled by ministerial powers. With this new structure, the Minister of Petroleum Resources will have little or no control over NNPC Limited and the company will no longer be restricted by bureaucratic bottlenecks. This change is expected to increase its operational efficiency and drive capital investment.

NNPC is now liable to pay taxes and dividends to its shareholders. Just like other incorporated entities under CAMA,

Efficient management
By virtue of its registration as a CAMA regulated company, NNPC Limited floated with an initial capital of N200 billion. The company now has the highest share capital in Nigeria, and also has $5 billion initial debt financing.
Explaining its transition from a corporation to a limited liability company at the recently concluded Nigeria Oil and Gas Conference and Exhibition, NNPC Limited boss, Kyari, said: “The meaning of this to our industry is that you’re going to have the partner of choice, the partner that will support you, the partner that will be the largest capitalised company in Africa. Not only that, a partner that will be born of best practice, of everything that you can think of because we’re going to be a CAMA company. We are going to be another Shell, decision making would be easy, finances will also be easy.”
As a commercial company, NNPC Limited must make prudent management of resources a core value to earn the trust of investors, both local and foreign. To make this happen, the heads of its 20 subsidiaries must be efficient and above average in their decision making, experts note.
“There is a space for private people to take equity in this company. But as we speak now, the shareholders are the over 200 million Nigerians. There can be a second level of private ownership, that is by selling down some of these equities so that people can take it in their individual capacity not in the collective capacity as a nation.
“So definitely the whole gamut of the changes will happen. And this company must be IPO ready immediately before you can talk about selling down of interest,” Kyari stated recently in an interview on Channels Television.
According to him, “We’re already on the positive trend and by the middle of next year, I’m very, very confident that this company will be in a place to say we’re ready for IPO and it will be the decision of the nation to go private completely in the sense that we can now sell their equity, which is different from being owned by the generality of Nigerians.”

“There is a space for private people to take equity in this company. But as we speak now, the shareholders are the over 200 million Nigerians.

Place of subsidies
According to NNPC Limited, Nigeria spent N1.4 trillion on petrol subsidies in 2021. “As at December 2021, Nigeria’s total debt stock stood at N39.5 trillion ($95.76 billion) and the Federal government is expected to borrow another N8trn in 2022 to augment its spending. We also project that the debt service to revenue ratio will rise further to 94 percent,” Agusto &Co said in its March report.
Agusto &Co, a credit rating agency, noted that Nigeria’s subsidy spending for fuel is expected to surpass its projections for capital expenditure of N3 trillion in 2022.
According to the agency’s report titled “Nigeria’s Petrol Subsidy Debacle”, Nigeria’s debt service to revenue ratio is projected to reach 94 percent in 2022. It further noted that the real cost of subsidies is the opportunity cost of consuming what the country should be investing, adding that the best time to remove fuel subsidy was 10 years agoand and the next best time is now.
The removal of fuel subsidy has become a political debate rather than economic issue. Agusto &Co said that the policy is no longer sustainable looking at the current global economic development. It warned that waiting until mid-2023 after a new administration must have taken over power at the Federal level could plunge the country “over the fiscal cliff.”
In June, a document sent to Federal Government by NNPC Limited showed that Nigeria spent N1.274 trillion ($3 billion) on fuel subsidies in the first five months of 2022. Although Nigerian Government made a provision of N443 billion for a subsidy for January to June in the 2022 budget as appropriated, the government succumbed to pressure from labour unions to keep up with fuel subsidy taken into account the current realities, increased hardship in the population, heightened inflation, and also that the measures that needed to be taken to enable a seamless exit from the fuel subsidy regime are not yet in place.
The labour unions had planned a protest on January 27, 2022 following the Federal Government earlier plans to remove fuel subsidies in line with the provisions of the PIA . The labour unions later shelved their planned protest after discussing with the government.
“Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy.
“The provision was made sequel to the passage of the Petroleum Industry Act (PIA), which indicated that all petroleum products would be deregulated.
“Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal. However, after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic.
“We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.
“Mr. President does not want to do that. What we are now doing is to continue with the on-going discussions and consultations in terms of putting in place a number of measures,” Minister of Finance, Budget and National Planning, Ahmed had said in January while announcing the suspension of the planned removal of subsidies.
“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July to December 2022 to whatever period that we agreed was suitable for the commencement of the total removal,” she added.
In January, the NNPC presented to the Ministry of Finance a request for N3 trillion as fuel subsidy for 2022, which implies that the country has to make an incremental provision of N2.557 trillion to be able to meet the subsidy requirement. Currently, a barrel of crude oil sells above $100, which means that the government will continue to spend a lot on subsidies if it wishes to continue subsidizing.
However, speaking during an interview with Channels Television, Kyari stated: “In the case of the price of petroleum, this is a policy matter. And the NNPC is going to be a supplier to the Federation at a fee. So, the issue of at what price you sell petroleum will be the decision of the state.
“The state has continued to maintain that we must continue to pay subsidy on petroleum products. We are happy to do this, but as a commercial venture, we will have a service-level agreement between us to render that service.”

Nigeria’s total debt stock stood at N39.5 trillion ($95.76 billion) and the Federal government is expected to borrow another N8trn in 2022 to augment its spending.

Fuel scarcity
In recent months, partial petrol scarcity has been witnessed in various parts of the country, including Abuja, the Federal Capital Territory. Although NNPC Limited has been the sole importer of refined petroleum products, marketers have been complaining that the regulated price of N165 per litre is no longer sustainable, because of the difficult business environment they operate in.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) in June said that its members would no longer sell petrol at the regulated price because of challenging business environment.
The Chairman, Lagos Satellite Depot, Akin Akinrinade, in a media briefing in Lagos, had said: “Our members can no longer sell at N165. In fact, there is no reasonable businessman in this business that can sell below N180 per litre.”
According to him, “For you to load a litre of petrol, you will pay N162 per litre. You will have to add the cost of transportation which is between N6 to N8, depending on the distance within Lagos. If it is outside Lagos, it is much more than that.
“So, If you add N8 to N162, you already have N170 and this product is regulated by the government and the government wants us to sell at N165. We have not added the charges at the depots and the running cost at our stations.”
In July, it was reported that NNPC had approved a new pump price for petrol, from N165 per litre to N179 per litre. In a notice to fuel marketers, the national oil company was said to have directed them to change the petrol price on pumps to the new price effective July 19, 2022. The company also increased the ex-depot price from N148.17 to N167 per litre.
However, NNPC subsequently denied approving pump price review saying that fixing of fuel price is the responsibility of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Vanguard reports that the spokesperson for NNPC Limited, Garba Deen Muhammad, while reacting to the media reports said: “The NNPC no longer approves pump price review. That is the work of the midstream and downstream authority. I have no idea. They are the ones that tell you what price regime the government has approved, not NNPC. NNPC has already exited all that situation. We are operating just like MTN now.”

Garba Deen Muhammad

In the PIA, there is no provision for petrol subsidies. So, subsidy is now an issue of policy that the government may decide to discontinue with when it seems right. The Petroleum Products Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund were collapsed into the NMPRA in October 2021, setting the stage for full deregulation of the downstream petroleum sector.
But to fully deregulate, labour unions have warned the government to ensure that all state-owned refineries are working before doing so. The fear is that if petrol is deregulated without functional state-owned refineries, it will deteriorates the harsh economic situation in the country, and many Nigerians will not be able to afford basic necessities of life. About 90 percent of mass transit in Nigeria is done by road, and most of the vehicles used are petrol-powered. Also, most small business owners in the country run their businesses on petrol-powered generators, due to epileptic power supply.
“Even with Nigeria’s status of being one of the largest oil-producing countries, the energy crises that have befallen us as a nation are well known, and this is solely due to the incompetence and corruption of the government,” said the President of the Trade Union Congress (TUC), Quadri Olaleye in January.

after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic.

Quadri Olaleye

“The fuel subsidy and the proposed hike in fuel price is a rather prominent and recurring one. Nigeria is the only OPEC member country that imports more than 90 to 95 percent of refined petroleum products for consumption.
“Nigeria has a total of five refineries in the country of which four are owned and managed by the government, and one by NDPR.
“It might interest you to know that none of the government-owned refineries is functioning, yet in the past 10 years alone, the government has wasted about $9.5 billion for turnaround maintenance of the moribund refineries.”

Our members can no longer sell at N165. In fact, there is no reasonable businessman in this business that can sell below N180 per litre.”

It may be challenging going forward as the Federal Government will have to pay for every imported petroleum products by NNPC Limited. None payment or irregular payment will likely result in petrol scarcity as NNPC Limited may not be able to render such service for long on credit without breaking down financially.
Unfortunately for Nigerians, the government revenue is getting slimmer and slimmer, which means it will be difficult for the country to sustain the payment for subsidies. In the first four months of 2022 (January – April), debt service surpassed the government revenue by about N300 billion. According to the 2022 fiscal performance report, Nigeria’s total revenue was N1.63 trillion while debt servicing stood at N1.94 trillion.

NNPC Limited and its peers
As a limited liability company NNPC Limited is expected to issue its first Initial Public Offer (IPO) by June 2023, to boost its capital base, according to Kyari.
“We’re already on the positive trend and by the middle of next year, I’m very, very confident that this company will be in a place to say we’re ready for IPO and it will be the decision of the nation to go private completely in the sense that we can now sell their equity, which is different from being owned by the generality of Nigerians,” he explained.
In line with the provisions of the PIA, the company will no longer get budgetry allocation from the Federal Government to run its activities such as fulfilling its financial obligations to the joint ventures, cash calls, among others.
“What that means is that the NNPC must now look for financing without recourse to the state. And indeed, the law is very, very clear that we will have no recourse to public funds.
“We cannot go to government anymore for financing. The reason is very simple that we can no longer ask for sovereign guarantee anymore. So the sovereignty vanishes,” he added.
Since its establishment 45 years ago, NNPC has not been able to become a fully commercial company, because as a public corporation its priority was to ensure adequate supply of petroleum products for the country without recourse to profit. So, the enabling legislation to support it to run as a commercial enterprise did not exist until the enactment of PIA.
Unlike NNPC as a corporation before now, Saudi Aramco have been running as a commercially independent company that the Saudi Arabian government budget relies upon for revenue in the form of royalties, taxes, and dividends. Because it is a commercially independent company, Saudi Aramco is the world’s largest oil producer and the world’s most profitable company, bigger than tech giants such as Apple and Google.
Saudi Crown Prince Mohammed bin Salman in 2016 announced plans to list 5 percent of the company’s shares at a time when the company was valued at approximately $2 trillion – it became the largest IPO. This increased investors’ attention in the company. Saudi Aramco eventually raised $29.4 billion in a 2019 IPO and a greenshoe option in 2020.
Another state-owned oil company that operates as a commercially independent company is Equinor ASA (formerly known as Stateoil). In the 4th quarter of 2021, Equinor reported record high adjusted earnings of $15.0 billion and $4.40 billion after tax. International Financial Reporting Standards (IFRS) net operating income was $13.6 billion and the IFRS net income was $3.37 billion.

Prince Mohammed Bin Salman

“We are capturing value from high prices for gas and liquids with excellent performance and increased production. This resulted in very strong adjusted earnings after tax for the quarter and the full year. In addition, continued improvements and capital discipline contributes to the strong free cash flow of 25 billion dollars and a significant strengthening of our balance sheet,” said Opedal, President and CEO of Equinor ASA, Anders Opedal, in a statement in February.
In the first quarter of 2022, the company reported adjusted earnings of $18.0 billion and $5.18 billion after tax. IFRS net operating income was $18.4 billion and the IFRS net income was $4.71 billion.
Similarly, Petrobras – the Brazilian government owned oil company, also runs as a commercial entity. Even though the government of Brazil owns 54 percent shares in the company,

Saudi Crown Prince Mohammed bin Salman in 2016 announced plans to list 5 percent of the company’s shares at a time when the company was valued at approximately $2 trillion – it became the largest IPO. This increased investors’ attention in the company. Saudi Aramco eventually raised $29.4 billion in a 2019 IPO and a greenshoe option in 2020.

it operates independently. This helps the company to operate efficiently and creates a conducive business environment for it to generate financial return for the shareholders.
In the first quarter of 2022, Petrobras Financial Performance Report showed a net income of $ 8.8 billion, representing a growth of 41.4 percent as against $31.5 billion recorded previously.

Anders Opedal

Prospects
There are opportunities for growth and positive prospects for NNPC Limited as it gets set to test the competitive enterprise waters. The PIA has laid the foundation for it to function optimally and profitably. But to take advantage of these opportunities, experts say the company must be transparent and innovative in its operations.
“It (PIA) would play a vital role in addressing the inefficiencies plaguing the NNPC, from slow approval for oil projects to budget shortfalls that hinder its ability to pursue public-private partnerships,” wrote the Executive Chairman of the African Energy Chamber, NJ Ayuk, in October 2020.
Commending the Federal Government on the unveiling of the new NNPC Limited, the Chairman of FASMICRO Group, Prof. Ndubuisi Ekekwe, stated that the company needs to improve on productivity and deepen innovation.

In the first quarter of 2022, Petrobras Financial Performance Report showed a net income of $ 8.8 billion, representing a growth of 41.4 percent as against $31.5 billion recorded previously.

NJ Ayuk

“Yet, there is really nothing to write since changing name, corporate formation, etc, will not change some of the underperforming elements. We still have to improve productivity and deepen innovation in the nation’s top foreign exchange earner,” Ekekwe wrote.
“Those changes must be done for us to unlock the latent opportunities within that company. I did three internships in NNPC and enjoyed the benefits of learning under some of the finest engineers in our nation. The first time I touched a computer was in NNPC – NGC, Moscow Rd in PHC – and the first time I changed an instrumentation and control knob was in Owasa Gas flow station.”
A professor of Petroleum Economics, Prof. Wunmi Iledare, noted that the opportunities are huge in terms of creating value for stakeholders with the amount of gas resources and oil resources at the disposal of NNPC Limited. Iledare explained that the human resources are huge as well but governance mentality has to change to harness these resources effectively, efficiently, equitably with optimal professional ethics, adding that the implementation of PIA 2021 provisions on NNPC limited cannot be selective and neither will business as usual approach create the type of value to attract investments as envisaged in the Act.
“First, NNPC Limited is a commercial entity now with mission and vision to maximise stakeholders’ economic value, just as Shell, Total and Chevron do. Unlike the old NNPC, which basically tends to maximise public policy in-kind value, PIA 2021 expects less agency roles for NNPC Limited if not even zero agency roles.

Prof. Ndubuisi Ekekwe

“To a large extent, NNPC has been the “cash cow” for the Nigeria Central Government in particular and the Federation in general, collecting oil and gas rent, spending on behalf of the federation, and offering other in-kind services to the FG with inappropriate payment for services. The post PIA NNPC cannot legally do that without consequences,” Iledare said.

Yet, there is really nothing to write since changing name, corporate formation, etc, will not change some of the underperforming elements.

“There are KPIs to justify investor’s continuous investment and in-kind services without payment, are not part of the KPIs. Yes, the federation currently owns all the shares at the moment but only for a while. Thus, the Federal Executive can no longer get involved in the structure and philosophy of NNPC. No interference in manpower development and deployment, is henceforth legal!
“There are also other challenges ahead including the public perception of NNPC Limited as “a new wine in an old wine bottle.” I said it somewhere it is less likely than not that NNPC Limited can change this perception without a complete overhaul of the current governance structure! Professional competence devoid of political expediency is required to maximise stakeholders’ value!”
According to him, NNPC Limited needs a new manpower development and deployment strategy that is completely different from the old practice to achieve stakeholders’ expectations.

the opportunities are huge in terms of creating value for stakeholders with the amount of gas resources and oil resources at the disposal of NNPC Limited