Friday, 4 March 2016

Nigeria's NNPC to split into 30 independent profit making companies with their own Managing Directors.

The Nigerian National Petroleum Corporation(NNPC) is to be split into 30 independent profit making companies, with their own Managing Directors.

This was made known by Mr Emmanuel Ibe Kachikwu, Minister of State for petroleum. According to reports, this move is an innovative strategy designed to restructure the NNPC and help tackle corruption.

Nigeria is Africa's biggest oil producer and derives more than 70% of its national income from oil.

The declining oil price has grossly affected its economy and now puts the current government in a tight position to deliver on its campaign promises.

President Buhari made reforming the oil sector a priority during his presidential campaign and subsequently appointed Mr Kachikwu, a former top official at ExxonMobil, to double as the head of NNPC and Minister of state for petroleum.

Mr Kachikwu announced that some oil producing countries will be having a meeting on March 20 in Russia to see how they can work together to address the instability in the global oil price.

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