Why some NNPC mega stations are shut – NNPC

NNPC station
NNPC station

Nigeria’s state oil firm, NNPC, on Wednesday gave reasons why some of its mega filling stations in Abuja and environs have been out of service for almost two months now.

The spokesperson of the corporation, Ndu Ughamadu, told PREMIUM TIMES in a telephone interview that the stations, like most others across the country, were deliberately shut down to allow for a review and revision of their operations to make for efficiency and effective service delivery.

“As you are aware, all the filling stations across the country wearing NNPC branding and logo are under franchise with private sector operators in the downstream sector of the petroleum industry. On a regular basis, the NNPC will undertake reviews of their operations and restrategise for better service,” Mr Ughamadu said.

“When we complete what we are doing, the stations will return better and more organised to serve customers better.
Whenever their contracts are about to expire, the NNPC will carry out the review of their operations and processes before either renewing them or appointing new managers,” he said.

He denied speculations that the closure of the stations for the period had anything to do with reports of fraud or mismanagement.
Also, Group Managing Director of the NNPC, Maikanti Baru, on Wednesday spoke on the plans of his management for the retail marketing arm of the corporation.

A statement sent to PREMIUM TIMES directed NNPC Retail Limited (a downstream subsidiary of the NNPC) to target 30 per cent market share of petroleum products distribution business by 2020.
The corporation’s downstream subsidiary currently holds about 14 per cent market share of the nation’s products distribution network, the statement said.

Mr. Baru explained that the 30 per cent target would enable efficient products distribution and price stability across the country.

He also disclosed that by that time, NNPC Retail Ltd would also extend its businesses to other neighbouring states in the West African sub-region.

“In making the choice to rebrand these entities and outlets, we are taking a huge step towards enhancing our corporate reputation, improved profitability, sustainable growth and most importantly, capture a larger share of the market across the entire downstream value-chain,” Mr Baru said.

He said the corporation also rebranded four of its downstream subsidiaries, namely Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC), NNPC Retail Limited and NNPC Shipping.

Mr. Baru said re-branding the four companies also prepares them for more competitiveness in the downstream sub-sector, in line with the corporation’s 12 Business Focus Areas (BUFAs).

He said the NNPC was committed to ensuring that PPMC becomes more profitable and crucial to meeting the nation’s energy demands.

Restating the corporation’s commitment to bequeathe an NPSC that would brim with revamped infrastructure for efficient storage and distribution of petroleum products across the nation, thereby ensuring supply reliability and energy security.

The statement also said NNPC’s key aspiration was to strengthen its shipping outfit to support the downstream growth objectives of its subsidiaries.

“The corporation would not relent until NNPC Shipping becomes the partner of choice in the marine transportation and logistics business,” the statement said.

He assured that in no time, the logos would spur and facilitate a great deal of improved brand loyalty towards the downstream subsidiaries.

The new logos, which were the products of an in house competition, were designed by two NNPC staff who emerged overall winners.

Ibrahim Ahmed designed the PPMC logo, while Fasoro Abimbola’s submissions emerged as the best for NNPC Retail Limited and NNPC Shipping.

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