Don’t Scrap NNPC, Insulate It From Political Interfere Instead – PENGASSAN

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Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has faulted the call by Governor Nasir el-Rufai of Kaduna State for the scrapping of the Nigerian National Petroleum Corporation (NNPC), saying political interference is the bane of the corporation.

In a reaction to the governor’s comment in a paper he delivered during the 7th Professor Wole Soyinka’s birthday lecture on Monday, PENGASSAN’s Acting General Secretary, Mr. Lumumba Okugbawa, said instead of “kill the NNPC,” the governor should have called for the insulation of the corporation from undue political interference that had distracted the organisation.

According to PENGASSAN, the issue of corruption in the NNPC mentioned by the governor was a problem hindering Nigeria’s growth and development in the oil and gas sector as a whole. “Let the government deal with the corruption in the system but not to throw away the baby with the bath water.”

The association argued that instead of killing the NNPC, what the governor should have called for was the re-organisation of the corporation and its subsidiaries to function effectively with clearer mandate, empowerment and improved financial approval authority without undue political interference.

PENGASSAN therefore called on the government to instill the culture of corporate governance and career management in the NNPC, which requires a legislative review to “ensure that the board of NNPC is headed by technocrats and not politicians; infuse compliance with global best practices and competitiveness, responsibility, transparency and accountability of all accruing revenue and expenditure in the national oil company; ensure that audit of NNPC and Subsidiaries’ business and investment relationships, operations, financing, procurements are carried out and published at appropriate intervals.”

1 Comment

  • Of course the idea of scrapping the NNPC is ludicrous. I don’t think PMB or anyone with actual influence would really push for such a thing. But the advice given by pengassan is still apt… the NNPC is a company not a political body, so it should be treated as such. I also think it can benefit from reform targeting its efficiency and level of transparency, something like what was proposed in the PIB.

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