2022: NNPC Set For Efficiency After Successful Transformation

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2022: NNPC Set For Efficiency After Successful Transformation
2022: NNPC Set For Efficiency After Successful Transformation

In 2022, the Nigerian National Petroleum Company (NNPC) Limited will surely be more efficient and transparent as a result of its successful transformation.

Throughout the decades, the national oil corporation has undergone several modifications and transformations. The Nigerian National Oil Corporation (NNPC), currently renamed Nigerian National Company (NNPC) Limited, has been on a transformation train since its inception on April 1, 1977, as a merger of the Nigerian National Oil Corporation (NNOC) and the Federal Ministry of Petroleum and Energy Resources.

The alterations and unprecedented downpour of reformations in 2021, according to a document published to the media, speak volumes when contrasted to earlier attempts to restructure the corporation.

The corporation would become a commercialised national oil firm under the new Petroleum Industry Act (PIA), which enshrines TAPE (Transparency, Accountability, and Performance Excellence) in NNPC.

“TAPE is widely promoted as a strategic roadmap for NNPC to attain efficiency and global excellence with a view to placing the Corporation on the path of profitability. It is also envisaged to transform NNPC and enhance its potential and capacity to compete with other National Oil Companies around the world.
   
“This strategy is designed to make NNPC more operationally transparent and accountable, benchmark NNPC against established global best practices and establish the right cost optimization structure among other derivatives,” it stated.

Mele Kyari, the Group Managing Director of NNPC, said the national oil corporation has been converted into a more competitive and commercial business, which will continue to deliver value and dividends to its shareholders, as he reflected on the firm’s achievements last year.

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The PIA, according to Kyari, has created various prospects for attracting investment to the industry, which NNPC and its companies will take use of to boost profits.

The NNPC boss said the corporation’s announcement of a profit of N287 billion in 2020 was a testament to the management’s cost-effectiveness

In 2021, he stated that the new NNPC Ltd’s push for efficiency, effectiveness and accountability paid off immediately, with the company generating a profit for the first time in 44 years.

The company planned to build on its success in 2021 to attain even greater operational excellence in 2022.

It listed some of the successful projects to include: the Final Investment Decision (FID) on $3.6 billion methanol plant in Bayelsa; execution of a $260 million funding agreement for ANOH Gas Processing Company Limited (AGPC) among the NNPC, Seplat and a consortium of seven banks; launch of Nigerian Upstream Cost Optimization Programme (NUCOP); award of $1.5 billion contract for the rehabilitation of Port Harcourt refinery; commercialization of OML 143 gas; and execution of OML 118 (Bonga) Agreements between NNPC and partners.

Meanwhile, the Federal Executive Council (FEC) has granted N621.2 billion for the Nigerian National Petroleum Corporation (NNPC) to take over the rebuilding of 21 federal roads throughout the country’s six geopolitical zones.

The federal government’s Road Infrastructure and Refreshment Tax Credit Scheme calls for the building and renovation of the designated roads as a strategic intervention.

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