₦airaland Forum

August 5, 2015 • By

Dr. Emmanuel Ibe Kachikwu, the new Managing Director of Nigerian National Petroleum Corporation, NNPC on Wednesday sacked all the eight Group Executive Directors (GEDs) of the Corporation a day after he assumed office.

In what seemed to be the beginning of the much sought re-organisation of the Corporation, Kachikwu has also appointed for Group Executive Directors to replace the sacked chief executives.

The sacked GEDs- Ian Udoh (Refining and Petrochemicals) Adebayo Ibirogba (Engineering and Technical team) David Ige (Gas and Power) Attahir Yusuf (Business Development) Dan Efebo (Corporate Services) Bernard Otti (Finance and Accounts) Aisha Abdurrahman (Commerce and Investments) and Joseph Dawha (Exploration and Production) were appointed by former President Goodluck Jonathan in 2014.

The reduction of the directorates of the NNPC from eight to four, according to NNPC was part of the restructuring of the organization which began with the appointment of Kachikwu on Tuesday.

The new offices and their heads include, Directorate of Refining and Engineering to be headed by Dr M.K Baru, Mr Denis Nnamdi to take charge of the Directorate of Exploration and Production.

Mr Bankole Komolafe has been appointed Group Executive Director for the Directorate of Commercial and Investment, while Mr Isiaka Abdulrazak will now head the Finance Directorate.


http://www.pmnewsnigeria.com/2015/08/05/shake-up-in-nnpc-as-new-gmd-sacks-8-executive-directors-appoints-new-ones/

am

Chanji Dole

I wish the new guyz best of their service. We really need total overhaul of NNPC.

When did this guy evaluate the sacked directors and the new ones he appointed?
I thought he is a jjc to NNPC?

or is this the hand of Isah and the voice of yakub?

k

Let's hit the ground running.

Good move against the tiredless gluttons.

The only true reorganisation of the NNPC would be to review the act that created it. That is the only way it can break Free from the reins of the government so that full liquidation of the downstream sector can come into being. Any other development, aside this is just a ride on the merry-go-round

What is the lifespan of an NNPC GMD? they are usually kicked out in 2 years or so. Ibe should enjoy his 24 months - 36 months in power... if he lasts that long!

hinwazaka:
The only true reorganisation of the NNPC would be to review the act that created it. That is the only way it can break Free from the reins of the government so that full liquidation of the downstream sector can come into being. Any other development, aside this is just a ride on the merry-go-round

What do you mean by "full liquidation of the downstream sector?"

PMB has dealt with NNPC. He should now turn his search light on NRC. The board and management should be replaced because of their ineptitude with well-trained technocrats that can run the corporation properly.

laudate:
What do you mean by "full liquidation of the downstream sector?"

Deregulate: to free a trade, a business activity from rules and controls
Liquidate: to close a business and sell everything you own in order to pay debts
* to destroy or remove something that causes problems
* to sell something in order to get money

Downstream sector : commonly refers to the refining of petroleum crude oil and the processing and purifying of natural gas as well as the marketing and distribution of products derived from crude oil and natural gas

I meant to say "liquidate the sector" but between chatting and drowsiness I mistyped. Thanks for noting that

hinwazaka:
Deregulate: to free a trade, a business activity from rules and controls
Liquidate: to close a business and sell everything you own in order to pay debts
* to destroy or remove something that causes problems
* to sell something in order to get money

Downstream sector : commonly refers to the refining of petroleum crude oil and the processing and purifying of natural gas as well as the marketing and distribution of products derived from crude oil and natural gas

I meant to say "liquidate the sector" but between chatting and drowsiness I mistyped. Thanks for noting that

Uh? Are you saying you want govt to deregulate the sector or liquidate the sector (i.e. sell it off and close it down?)

laudate:
Uh? Are you saying you want govt to deregulate the sector or liquidate the sector (i.e. sell it off and close it down?)

deregulation though helpful, would be meeting the problem halfway. Liquidation on the other hand would be freeing off the sector completely, leaving it completely to the invisible hands of demand and supply. Such would hurt in the short run but be very helpful in the long run besides the sector causes the government to be heavily indebted and also acts as a huge embarrassment to the nation due to the sleaze attached to it. Hope you catch my drift

hinwazaka:
deregulation though helpful, would be meeting the problem halfway. Liquidation on the other hand would be freeing off the sector completely, leaving it completely to the invisible hands of demand and supply. Such would hurt in the short run but be very helpful in the long run besides the sector causes the government to be heavily indebted and also acts as a huge embarrassment to the nation due to the sleaze attached to it. Hope you catch my drift

You do not have to liquidate a sector in order to free it, or in order to ensure that the forces of demand and supply take their course.

If the sector is properly deregulated and (not partially deregulated) given proper guidelines that foster commercial viability, accountability and standards, then it would thrive.

Look at the telecoms sector. IBB deregulated it, but did not kill NITEL. NITEL eventually died, because it could not survive the competition posed by the new entrants.

Look at diesel and jet fuel. Both have been liberalised, (don't like using the word deregulated for diesel) , but the price still remains high and the forces of demand and supply are unable to take effect, because diesel and jet fuel is still being imported and distributed by a cabal.

Anytime there is a strike, diesel and jet fuel become scarce. Anytime, FG and marketers disagree, diesel and jet fuel become hard to find and their prices shoot up. Just like in the PMS market. Why ??

Now more airlines re-fuel in Ghana and other neighbouring countries before coming here to pick up passengers because of the outrageous prices being charged for jet fuel.

laudate:
You do not have to liquidate a sector in order to free it, or in order to ensure that the forces of demand and supply take their course.

If the sector is properly deregulated and (not partially deregulated) given proper guidelines that foster commercial viability, accountability and standards, then it would thrive.

Look at the telecoms sector. IBB deregulated it, but did not kill NITEL. NITEL eventually died, because it could not survive the competition posed by the new entrants.

Look at diesel and jet fuel. Both have been liberalised, (don't like using the word deregulated for diesel) , but the price still remains high and the forces of demand and supply are unable to take effect, because diesel and jet fuel is still being imported and distributed by a cabal.

Anytime there is a strike, diesel and jet fuel become scarce. Anytime, FG and marketers disagree, diesel and jet fuel become hard to find and their prices shoot up. Just like in the PMS market. Why ??

Now more airlines re-fuel in Ghana and other neighbouring countries before coming here to pick up passengers because of the outrageous prices being charged for jet fuel.

First off I am suggesting using both instruments together as a tool to revive the industry without the participation of the government
Second am using liquidation in the second and third aspect meaning to sell off the assets of the sector to prospective individuals but still getting back the much needed cash which will become very useful in the poor economic terrain we will find ourselves in a year or two.we would have the cash to settle the numerous debts we have acquired over the years due to the profligacy of the sector and still have enough to plough back into other lucrative and less bureaucratic businesses.
Third, the time for deregulation has a singular instrument has come and gone. The economic forecasts for next year are abysmal to say the least. Deregulating the business might not bring the much expected results in the short run due to the numerous bottlenecks and challenges the investors would face, for example the unbundling of PHCN. Using the term deregulation might to many drive home the point of instant results and thus raise expectations. This was the mistake made with PHCN and NITEL. The government should have painted a gloomy picture of a completely broken down vehicle being sold for scraps as a necessity and not as a business investment.

Third NITEL is an institution in a sector not the sector. So what goes for the upstream, midstream and downstream sector does not apply for NITEL. NITEL was a unviable enterprise that had packed shop years before IBB attempted to deregulate it. And also the final nail in the coffin was Time and lack of innovation. The telecoms world moved on and we were caught behind time. Time killed NITEL not foreign competition. Also as I earlier stated the wrong message was passed across to stakeholders and Nigerians. It was a broken down dead car not one that could be refurbished and reintroduced.

Fourth the reason for the huge prices commanded by DPK is a plethora of factors, not just the irregularities caused by middlemen. Demand and supply will inevitably be a key in forcing down the price in the long run not now. We need to start thinking of long term future inclined policies not just short term fire brigade tactics which would only close one crack but open another in the dam
Fifth, The exodus of our airlines to refill their tanks in Ghana is due to sabotage and corrupt elements who divert our crude oil to be refined in Ghana so as to drive up the price of petroleum products here. It is a cleverly concocted scheme to keep the government in its bureaucratic dome. Only liquidation +Deregulation in the long term can bring us closer to Elysium.

laudate:
You do not have to liquidate a sector in order to free it, or in order to ensure that the forces of demand and supply take their course.

If the sector is properly deregulated and (not partially deregulated) given proper guidelines that foster commercial viability, accountability and standards, then it would thrive.

Look at the telecoms sector. IBB deregulated it, but did not kill NITEL. NITEL eventually died, because it could not survive the competition posed by the new entrants.

Look at diesel and jet fuel. Both have been liberalised, (don't like using the word deregulated for diesel) , but the price still remains high and the forces of demand and supply are unable to take effect, because diesel and jet fuel is still being imported and distributed by a cabal.

Anytime there is a strike, diesel and jet fuel become scarce. Anytime, FG and marketers disagree, diesel and jet fuel become hard to find and their prices shoot up. Just like in the PMS market. Why ??

Now more airlines re-fuel in Ghana and other neighbouring countries before coming here to pick up passengers because of the outrageous prices being charged for jet fuel.

First off I suggested the use of both instruments as a tool. Liquidation would be helpful in recovering the much needed cash that will be useful in the poor economic climate we will witness a year from now. The sale of assests will enable us recover the liquidity which we could use to plough back into less bureaucratic ventures

Secondly , Deregulation would be viable in the long term not now anday not be so effective due to the numerous bottlenecks that will be attributed to the long years of government mismanagement. The unbundling of PHCN comes to mind. The mistake the government made in the partial deregulation of the DISCO's was due to the miscommunication by the government to the citizenary that it would bring forth instant results. The government should have painted a gloomy picture of a dilapidated broken down vehicle being sold for scraps as a necessity and not a business investment