FG to unbundle NNPC into four companies
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said the Nigerian National Petroleum Corporation, NNPC, would soon be unbundled into four companies for efficient operation.
Kachikwu, who stated this in Abuja during a press conference, said the unbundling is part of the final phase of restructuring efforts aimed at focusing the minds of individuals as quasi managing directors of the entities to deliver profitability to the corporation.
He said the four companies would include the downstream company, the upstream company, Midstream Company and Refining Crude Oil Company.
On the removal of subsidy, the minister said government would rather adopt a more scientific price modulation approach to periodically review prices to reflect the prevailing international price of crude.
According to him, when operational, the novel price modulation system will place a N97 per litre cap on the price of fuel to ensure that Nigerians are insulated from the vagaries of the global crude price.
“I did not say that refined petroleum products will sell for N97 per litre next year. I said that between a band of N87 and N97 we are going to be looking at prices and today the prices are largely close to N87. So, there is no need to change the price.”
“I have not put a static figure. PPPRA will have to do the calculation to be able to announce what price of PMS will sell for in January; but we do not anticipate any major shift because of the price of crude today,’’ he said.
Meanwhile, the federal government has awarded contracts to 21 Off-takers following an open bid exercise conducted in October, which witnessed a harvest of 278 bids submitted by indigenous and foreign firms seeking to secure contract for the sale and purchase of the 26 Nigerian crude oil grades on offer.