Mixed-reactions trail Buhari’s plan to split NNPC

By Oluwagbenga Bankole

President Muhammadu Buhari’s plans to divide Nigerian National Petroleum Corporation (NNPC) into two successor entities under his administration have started to generate mixed reactions by stakeholders in Nigeria Oil and Gas sector.

The President, who disclosed this in an interview with journalists in Washington DC during a four-day visit to the United States said one of the successor companies will be an independent regulator while the second would be an investment vehicle for the country.

The Managing Director of Divon Engineering, Engr. Andy Ikekhide in an exclusive chat with our correspondent said that overhauling of the NNPC is long over, saying that it is an exercise to be done with utmost care, giving attention to detail to avoid duplication of functions of several parastatals of government. 

He said while the investment vehicle can and should be carved out without delay to make it viable, the regulating aspect has to take cognizance of the functions of related bodies like Department of Petroleum Resources (DPR).

DPR has the statutory responsibility of ensuring compliance to petroleum laws, regulations and guidelines in the Oil and Gas Industry. The discharge of these responsibilities involves monitoring of operations at drilling sites, producing wells, production platforms and flowstations, crude oil export terminals, refineries, storage depots, pump stations, retail outlets, any other locations where petroleum is either stored or sold, and all pipelines carrying crude oil, natural gas and petroleum products among others.

Also speaking with our correspondent, the Group Managing Director of Dorman Long Engineering, Engr. Orji Nwosu said that the plans of President Buhari need more clarity, stating that the President need to explain what will be the duty of DPR if we have independent regulator NNPC.

He further stated that; “We need to know the different between the investment vehicle NNPC and the current one. There must be something radical in the new investment division that will make the body different.”

The Managing Director of Amee Global Services Limited Mr. Murphy Erhirhie while speaking with our correspondent said the President need to explain to Nigerians in clear terms the responsibilities of the two successor companies.

“Honestly he needs to explain what he wants to do because I can’t even understand how a single body will be divided into two and within the body one is regulating and the other one is an investment vehicle. Nobody understands what Buhari is trying to do. Nobody knows his roadmap or his economic direction,” he further explained

Erhirhie also said that there is nothing wrong with the way NNPC is structured right now, adding that the only problem is the human element.

“If corruption can be handled, NNPC will operate viably the way they should operate. Changing the name or dividing the body into two successors is not the solution, the problem in NNPC is the human element. Many people are not there to serve, rather they are there to enrich themselves,” he said.