A Review of the Nigerian Energy Industry

PENGASSAN advocates review of NNPC board

03 June 2015, Abuja – To ensure the effective management of the Nigerian National Petroleum Corporation, the Petroleum and Natural Gas Senior Staff Association of Nigeria has called on the Federal Government to review the composition of the Board of Directors of the corporation.

It stresses that the new government, headed by President Muhammadu Buhari, should ensure that the corporation is headed by professionals and not politicians.

The association added that the NNPC and its subsidiaries should be restructured and given a clearer mandate free from political influences.

These were contained in PENGASSAN’s recommendations on the oil and gas sector reforms.

The President, PENGASSAN, Francis Johnson, said that the sector needed to be revamped to prevent wastage of the country’s resources and improve accountability and optimisation of the economy.

He stressed that the appointments of NNPC leadership should be free from undue political interference and tenure-based.

He added that the corporation’s revenue collection and expenditure should be transparent and in line with global best practices.

Johnson said, “Reorganise the NNPC and its subsidiaries to function effectively with clearer mandate and empowerment. Thus, NNPC can operate and compete professionally in line with corporate governance principles and without undue political interference.

“Instil in NNPC the culture of corporate governance and career management which requires a legislative review to ensure that the board of NNPC is headed by technocrats and not politicians. Ensure that the audit of NNPC and subsidiaries’ business and investment relationships, operations, financing, procurements are carried out and published at appropriate intervals.

“Make the positions of the Group Managing Director of NNPC and the managing directors of the subsidiaries to be tenure-based and ensure security of tenure, not allowing appointments to be terminated at will by the president. Frequent changes in top management positions lead to policy somersault and create unstable system, which often breed compromise of corporate values and principles. Ensure that Group Executive Directors are permanent members of the board to facilitate effective decision making.”

The workers’ association advocated a discontinuity in poor succession planning and career management that was causing distortion in NNPC structures, adding that staff development and empowerment should be adequately prepared for.

In accordance with the guidelines on contract and casual employment, Johnson called for an immediate conversion of contract staff in the oil and gas industry into permanent staff.


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