The Nigerian National Petroleum Corporation (NNPC) will adopt new business models and organizational structures for all its Strategic Business Units (SBUs) and Corporate Service Units (CSUs).
The new Group Managing Director (GMD) of the corporation, Andrew Yakubu, said at his inaugural meeting with management and staff in Abuja on Wednesday, that the new business models would ensure the commercial viability of the national oil company (NOC) to enhance its competitiveness in the global oil and gas industry.
He said the adoption of the new business model is part of the focus of the new management team to reposition the NNPC into a commercially-focused and profit-driven organization governed by best management practices using current technology to transform its operations.
“To ensure early realization of this objective, all SBUs and CSUs must be positioned to pursue and maintain competitive operational and business efficiency, cost effectiveness, input/output optimization, revenue maximization and profitability,” Mr. Yakubu said.
The initiatives to be considered for immediate approval and implementation by the new management include new business models and organizational structures for all the SBUs and CSUs, such as NNPC Retail Limited, Nigerian Petroleum Development Company (NPDC) and others.
Other initiatives include capitalizing and creation of profit-oriented SBUs; implementation of Project Sanction and Approval Procedure (PSAP) as well as implementation of a performance management based on commercial orientation.
The new NNPC boss said his agenda would also include focusing on the entrenchment of accountability and transparency; rebuilding NNPC’s financial position; implementation of NPDC growth strategy; monetization of natural gas resources for national economic growth and development; revamping critical facilities and infrastructure; as well as promoting capacity building, empowerment and staff welfare.
He said NNPC under his leadership, would review all audit reports on its activities in the past five years with a view to building a comprehensive information data base to improve the Corporation’s performance and quickly address relevant recommendations.
“NNPC will have a zero tolerance for corruption and all cases of corrupt practices will be severely dealt with in accordance with extant laws,” he said.
He stated that the Corporation would ensure the security and rehabilitation of its key pipeline infrastructure across the nation to ensure efficient supply and distribution of petroleum products to every nook and cranny of the country.
The GMD assured of his management’s commitment to the provision of adequate welfare package for staff. He also said he would work to strengthen the corporation’s human resource base, which he described as the corporation’s greatest asset.