President Buhari divides NNPC

President Buhari has finally revealed what will be the fate of the "corrupt" Nigerian National Petroleum Corporation, NNPC. He is dividing it into two successor entities under his administration.

The President, who stated this in an interview with selected journalists, explained that the decision would form one of the key steps of his reform of the country’s oil and gas sector. He said, “I am reforming the oil and gas sector, breaking up the NNPC into two parts – the first will become an independent regulator for the sector, while the second will act as an investment vehicle for the country.”

The NNPC is considered a cesspool of corruption and fraud signposted by the non-remission of revenues from oil sale to the Federation Account. Hence, one of the first reform moves by All Progressives Congress–led administration is expected to start at the NNPC.

There had been insinuations that Buhari would unbundle the NNPC into four companies but the President, during in the interview before leaving US, said rather than breaking the NNPC into four companies, it would be divided into two – regulator and investment vehicle.

While one of the successor companies will be an independent regulator, the President said the second would operate as an investment vehicle for the country.

Buhari also said there would be a new bid round for oil blocks in the country, adding that he favours transparent auction process.

“I will also end political control of the awarding of drilling and exploration rights [of oil blocs] by introducing a system of independent, transparent auctioning for licences,” the President said.

Buhari, as part of the ongoing reform of several strata of the country, said “Corruption is one of the top three issues facing Nigeria, along with insecurity and unemployment. We must act to kill corruption or corruption will kill Nigeria. I am determined to lead that fight.

“My government is already taking several steps to cut out the cancer of corruption that has been eating away at the state for so long.

“We are reorganising the existing plethora of anti-corruption bodies into single powerful agency that will have the focus, power and budget to clamp down on corruption at the federal and state levels.”