ABUJA – The Federal Government has stressed that the on-going transformation of the Nigerian National Petroleum Corporation (NNPC) would effectively place it at a position to compete with other international oil and gas companies, as well as have profound effect on the nation’s economy.
It, therefore, urged members of staff of the Corporation to brace up for the eventual transformation, which is the major component of the proposed transformation of Nigeria’s oil and gas industry as contained in the Petroleum Industry Bill.
This was the position of the Special Adviser to the President on Petroleum Matters, Dr. Emmanuel Egbogah, while delivering a keynote address in Abuja to Senior members of staff of the corporation to kick start the zonal NNPC town hall meeting/road shows on transformation.
Egbogah said the transformation programme would enable the Corporation to perform like any other international oil and gas company that is driven by value creation for its shareholders and stakeholders adding that this would ultimately make it to compete effectively in today’s 21st century oil and gas industry.
â€œTransformation of NNPC will enable the company to meet the aspirations of the key stakeholders and the generality of Nigerians,â€ Egbogah stated.
According to him, effective transformation in any society or organization does not happen by accident or through directives and instructions handed down from management or the leaders. It can only be achieved through the collaboration and commitment of management and staff at all levels to implement a pre-planned set of activities and initiatives.
He noted that for the transformation to have the desired effect, members of staff must be ready to make themselves the agent of change through their day to day official responsibilities and behavior.
The Presidential Adviser urged the management and staff of NNPC to embrace the new entrepreneurial culture that would enable it to compete with other jurisdictions with huge hydrocarbon resources saying that the transformation is capable of promoting social and economic development of the country.
He noted that the transformation of the NNPC is imperative considering the significant role that the oil and gas sector plays in Nigeria’s economy revealing that the sector accounts for about 30%-40% of Gross Domestic Product (GDP), 85% of government revenue and about 95% of foreign exchange earnings.
â€œThe transformation of PETRONAS of Malaysia has significant poignancy for Nigeria as both countries share similar development challenges as well as similar aspirations of economic and national development,â€ Dr.Egbogah averred.
Making a case for the transformation of the NNPC, the Group Managing Director Dr. Mohammed Sanusi Barkindo disclosed that in recent years the corporation has recorded series of negative postings in cash flow hence the need for urgent reform to save the corporation from insolvency.
The Group Managing Director revealed that the management of the Corporation has adopted five key strategies namely set up NNPC for growth, turn around maintenance of refineries, build retail and integrated trading business, build gas and power plan and develop new partnership model in order to put the Corporation on the path of profit.