NewsExpress banner First Bank Fashion Souk Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

Experts decry NNPC’s poor contribution to Nigeria’s economy

By News Express on 05/04/2018

Gmail icon

Views: 1,309

•NNPC Headquarters Abuja
•NNPC Headquarters Abuja

Stakeholders in the oil and gas industry have decried alleged poor contribution of the Nigerian National Petroleum Corporation (NNPC) to the economy.

Speaking at a workshop at the weekend organised by the Nigeria Natural Resource Charter (NNRC) in Lagos, in his presentation titled: “The Case of NNPC Refineries and Pipelines within Nigeria”, Mr Alarudeen Aminu, of Centre for Petroleum, Energy Economics and Law (CPEEL), stated that, “The small contribution of NNPC refineries and pipelines across measures can be related to the sector’s low capacity utilisation which is 18 per cent for quite some time now.

“This has led to an unprecedentedly high importation of its products at the expense of the economy as every item of import is a leakage in the system.”

He argued further that the sector has also been running at a huge loss thereby reducing its contribution to the economy.

“There is a need for concerted efforts to promote accountability in the management and turn-around-maintenance of the refineries. The existing refineries and pipelines at full capacities appear inadequate to fully satisfy domestic demand for petroleum products as a rigorous CGE modelling exercise reveals. The importation is making negative contribution to the economy.

“A nation-wide system of pipelines should be developed to boost the use of pipelines to transport petroleum products at reduced cost as there will be no long distance transporting of oil/gas resources by trailers with the attendant risks and loss of property and lives,” he concluded.

In his opening remarks, former Minister of State for Petroleum Resources, and chairman of the Expert Advisory Panel of NNRC, Odein Ajumogobia, stated that “30 years ago, the commercialisation of the NNPC transformed it into a holding company with 12 subsidiary companies covering the entire spectrum of the industry’s operation – the National Petroleum Investment Management Services (NAPIMS), the Nigerian Petroleum Development Company (NPDC), The Nigerian Gas Company (NGC), The  Products and Pipelines Marketing Company (PPMC), the Integrated Data Services Limited (IDSL), the Nigerian LNG limited (NLNG), the National Engineering and Technical Company Limited (NETCO), the Hydrocarbon Services Nigeria Limited (HYSON), and the three refineries – the Warri Refinery and Petrochemical Co. Limited (WRPC), the Kaduna Refinery and Petrochemical Co. Limited (KRPC), the Port Harcourt Refining Co. Limited (PHRC),  and the Eleme Petrochemicals Co. Limited (EPCL).

“The most recent reorganisation took place at the end of 2015 with the restructuring of the corporation into five business units with a focus on business: Upstream, Downstream, Refineries, Gas and Power and a separate unit to supervise the rest of the corporation as it was prior to the 1988 reorganisation.”

He commended the corporation’s new leadership for quickly identifying 20 critical issues that needed to be addressed in order to re-position the 41-year-old national oil corporation on the track of efficiency and profitability.

The targets included: reducing and auditing cost, restructuring corporate centre and staffing, renegotiating existing contracts, including PSCs, streamlining subsidy management, boosting pipeline security, enhancing transparency and accountability, achieving zero tolerance for corruption, rebranding NNPC and unbundling PPMC.

•Sourced from Nigerian Tribune.


Source News Express

Posted 05/04/2018 11:57:23 AM





You may also like...
NECO releases Nov/Dec 2016 SSCE results •Ogun posts...

Professor accused of stealing student's invention to make...

Obi hails elevation of Kaigama as Archbishop of...

South-East APC Young Progressive Forum urges South East...

EFCC docks Air Vice Marshall for N166m bribe...

Enugu Police arrest gardener who threatened to kidnap,...

Bayelsa guber: APC insists on participation, goes to...

PDP aspirant kick starts Governor Umahi's re-election campaign...

Okonjo-Iweala honoured in Washington

Shehu Sani queries El-Rufai’s plan to build refinery...

HURIWA alleges witch-hunt by pirates against Copyright Commission’s...

Ekiti Protest: How protesters were bribed with cash,...


Latest News 6 Boko Haram suspects captured in Sudan Catholic priest slumps, dies Mass sack hits Ekiti Varsity, over 900 workers thrown out Dokubo alleges corruption under Niger Delta Amnesty Programme 6 former governors who have been jailed for corruption Boko Haram kidnaps 17 children, youths 2023: Igbo leaders kick-start debate on Presidency, restructuring Police Inspector shoots man dead at Lagos club INEC sets January 2020 for 28 rerun elections 77,827 teachers to write qualifying exams Man shoots brother after ‘magic ring’ fails Obi hails elevation of Kaigama as Archbishop of Abuja, offers advice


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (568,962 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (455,253 views) Shameless Genevieve Nnaji exposes breasts in public (405,053 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (339,786 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (306,591 views) 10 cars more expensive than Jets (290,181 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (260,628 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (259,403 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (240,855 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (227,364 views) Lagos plane crash: Journalist releases victims’ names (203,256 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (199,750 views)


CBN milk production

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (111) Business & Economy (4,612) Business Verdict (89) Columnists (1,154) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (715) Features (851) Global Business Monitor (497) ICT Monitor (72) International (4,299) Interview (216) Live Commentary (30) Love Matters (177) Maggie's Blog (505) News (54,874) Opinion (1,435) Pidgin (18) Politics (11,847) Religion (1,130) Sports (2,243) Stock Watch (40) AMA & Al Jazeera Global Update







APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera