Management Staff With Less Than 15 Months to Statutory Retirement to Exit NNPCL Today

September 19, (THEWILL) – The Nigerian National Petroleum Company Limited (NNPCL) has put out a statement saying that all management staff with less than fifteen months to statutory retirement will be exiting the company today, September 19, 2023.

The September 18 statement which was signed by Management read:

“In our bid to pursue effective organizational renewal to support the delivery of our strategic business objectives, it has become imperative to rejuvenate our workforce.

“Consequently, in addition to the recent exit of three (3) Executive Vice Presidents, other Management Staff with less than fifteen (15) months to statutory retirement will be exiting the Company effective 19th September 2023.

“This is in line with our commitment to scale up NNPC Ltd.’s capabilities through targeted talent management and equal opportunity for all Nigerians.”

THEWILL recalls tha the NNPCL made a strategic move by appointing new Executive Vice Presidents to spearhead critical sectors. Oritsemeyiwa A. Eyesan was appointed as the Executive Vice President for the Upstream sector, Olalekan Ogunleye for Gas, Power, and New Energy, and Adedapo A. Segun for the Downstream sector.

This strategic restructuring is a result of pivotal recommendations put forth by the Energy and Natural Resources sub-committee of the Bola Ahmed Tinubu Advisory Council back in June 2023.

The sub-committee, committed to instigating vital reforms in the energy sector, set a stringent timeline of 0 to 100 days for the new administration to meticulously head-hunt competent, seasoned, and reform-driven leaders within the NNPCL.

The primary aim is to ensure that the company functions as a commercial entity in strict accordance with the provisions of the Petroleum Industry Act (PIA), effectively contributing taxes and profits to the Federation Account.

Beyond executive appointments, the sub-committee underscored the urgency to realign NNPCL by divesting it of policymaking roles and advocating for the strategic sale of certain assets.

These comprehensive recommendations reflect a resolute effort to fortify the NNPCL, facilitating its alignment with statutory mandates and transforming it into a more efficient and profit-oriented entity.

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Sam Diala, THEWILL

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Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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According to the announcement, the commission had previously issued transmission service provider (TSP) and system operations (SO) licences to TCN, in accordance with the Electric Power Sector Reform Act. However, the Electricity Act 2023, which came into effect on June 9 of that year, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO. Therefore, in the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA). 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Also, it will generally carry out market and system operations functions as specified under the Electricity Act and the terms of its licence in the interest of market participants and system users. NERC said the company is expected to carry out all market and system operation-related contractual rights and obligations handed over by TCN, THEWILL sought clarification of the new arrangement from industry experts and, more especially, employees of TCN who volunteered the necessary information but pleaded for anonymity as they do not have the authority of their employer to speak on the matter. A management staff member of the organisation in Lagos said that the arrangement is not new. He explained that four entities emerged from the carcass of the unbundled national power company, Power Holding Company of Nigeria (PHCN) which the Power Reform Act of 2003, enacted ten years after the unbundling of PHCN in 2013, substituted. These are the GenCos (power providers), Independent Service Operators (grid operators), Transmitting Company (power conveyors) and the DisCos (distribution of power to the final consumers). According to the source, the ISO has been existing and performing its function of evacuating power from the GenCos, and selling to the DisCos via the Transmitting entity. He said, successive administrations and TCN leadership were reluctant to allow the ISO operate independent of TCN because “that is where the meat is”. According to him, the ISO ‘unit’ under TCN relates with the GenCos and the DisCos buy buying power from the GenCos) and selling to he DisCos but “the DisCos are the trouble Nigeria has”. He explained to THEWILL that the DisCos do not accept the volume of power alloted to them by the GenCos on the flimsy excuses that they do not have the capacity to carry the entire volume. 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