We have NOT unbundled NNPC, says Kachikwu

Ibe Kachikwu, minister of state for petroleum resources, says the federal government has not unbundled the Nigeria National Petroleum Cooperation (NNPC).

Speaking with state house correspondents on Wednesday, Kachikwu said the government only restructured the corporation for the sake of efficiency.

“We have not unbundled NNPC. We had a press conference yesterday where I explained this. What we have simply done is reorganisation,” he said.

“We have five business entities focused on business: upstream, downstream, refineries, gas and power that are there before. There is also ventures that capture all our little companies that were not having proper stewardship.

“They are run by individuals who report to the GMD. The NNPC is still a whole. There is nothing new that has happened.

“I have tried to explain this and I am sure the NNPC workers are members of the family; they will understand. We are going to have a meeting, and they will be made to understand. Perhaps the engagement has not been good enough.

“NNPC has not been unbundled in the sense of breaking up NNPC into distinct institutions. I am concerned. I don’t want the industry shut down. I am sure we are going to resolve the issues very soon.”

Last week, the minister disclosed that the current administration would soon split the oil firm into 30 profitable companies. However, he announced the creation of seven independent units late Tuesday.

Reacting, the senate expressed dissatisfaction, wondering why the government did not consult the national assembly “before repealing the enabling law that set up the organisation”.

Olusola Adeyeye, chief whip of the senate, described the exercise as “illegal”, and urged the senate to investigate the issue

Apart from the lawmakers, some oil workers are also unhappy with the restructuring.

On Wednesday, members of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) shut down the operations of the NNPC nationwide in protest.

Members of staff and management of the corporation arrived their various offices to discover that they could not gain entrance following the total strike.

The immediate impact of the strike will be nationwide fuel scarcity as products will not be lifted by NUPENG.