NNPC workers shut down operations nationwide
Angry staff of the Nigerian National Petroleum Corporation (NNPC) on Wednesday barricaded Continued on page 6 major entrances into the Corporation’s headquarters in Abuja, denying access into the facility and shutting down every activity in protest to the decision of the Federal Government to unbundle NNPC into several smaller companies. The shutdown also affected NNPC opperations nationwide.
This is even as Minister of State, Petroleum Resources and Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu, on Wednesday, denied reports that the Federal Government had unbundled the corporation. Recall that Kachikwu had on Tuesday announced that President Muhammadu Buhari had already approved the final phase for restructuring of the NNPC into seven coordinating units, including an upstream company, a downstream company, a gas and power company, as well as another company in charge of refineries, all to be headed by chief executive officers with independent mandates.
Those appointed to head the newly created units within the NNPC are Bello Rabiu, CEO, NNPC Downstream; Henry Ikem-Obih, CEO, NNPC Upstream; Anibor Kragha, CEO, NNPC Refineries; Saidu Mohammed, CEO, NNPC Gas and Power; Babatunde Adeniran, CEO, NNPC Ventures; Isiaka Abdulrazaq, CEO, NNPC Finance and Services, and Isa Inuwa, the executive head of NNPC Corporate services.
However, visibly angry protesters, who were part of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), expressed dissatisfaction with the proposed unbundling of NNPC due to what they called “fears of job loss that could follow the process.”
A mid-level staff of NNPC, who spoke with the Daily Times on the condition of anonymity because he was not authorised to do so publicly, said that the minister’s decision to restructure NNPC was taken in secrecy with one or two persons and that NNPC staff just got to know about it from the media. He also maintained that all NNPC facilities nationwide and not just in Abuja would remain under lock and key on account of the protests.
While announcing the unbundling of NNPC Tuesday, Kachikwu insisted that “the mandate given to him by President Buhari “was not to get anyone fired but to ensure that the divisional breakups become more focused on business, as more companies will create more work for an overstaffed and sometimes idle workforce, getting them busier and more productive.” There are growing concerns that, if not contained, the shutdown at NNPC due to the protests could result in a fresh round of fuel scarcity across the nation after a prolonged episode of the same problem is just trying to ease off. Meanwhile, Kachikwu has denied reports that the Federal Government had unbundled the corporation.
He told State House correspondents after a meeting with President Muhammadu Buhari at the Presidential Villa, Abuja, on Wednesday, that what the government rather did was to reorganise NNPC. He said: “We have not unbundled NNPC. We had a press conference yesterday (Tuesday) where I explained this. “What we have simply done is reorganisation. We have five business entities focusing on business: Upstream, Downstream, Refineries, Gas and Power that are there before.
“There is also Ventures that captures 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.” On the ongoing strike by staffers of NNPC, he noted: “I am concerned. I don’t want the industry shut down. I am sure we are going to resolve the issues very soon.”
However, the Senate on Wednesday summoned Kachikwu over unbundling of NNPC and the attendant strike action by workers. The Senate expressed shock and disbelief over the decision of the Minister on issue of unbundling of the NNPC. Kachikwu is expected to appear before the Joint Committee of Senate on Upstream, Downstream and Gas today (Thursday, March 10, 2016). According to letter signed by Senate Committee Chairman on Downstream, Senator Tayo Alasoadura, he said the Senate was shocked by the announcement in disbelief and that the three committees overseeing the industry had decided to invite Minister to appear before them to brief them of this critical decision in a meeting scheduled for today, Thursday, March 10, 2016. Speaking on the development, the Senate Leader, Senator Ali Ndume, said that Senate has called the management of NNPC to come and brief the Senate on the development.