President Muhammadu Buhari has made public his intention to split the Nigerian National Petroleum Corporation (NNPC) into two entities as part of his plans to revamp the oil sector.
The NNPC is saddled with the responsibility to serve Nigeria’s interest in oil and gas exploration, manage the energy sector and is the regulator of the industry which contributes 70 percent of the nation’s revenue. But NNPC has since come under intense scrutiny having been accused of failing to remit billions of dollars into the nation’s treasury.
Buhari’s splitting of the NNPC into two entities will mean that one will be an independent regulator and the other one an investor vehicle,” said spokesman Femi Adesina, as opposed to it being a regulator, a revenue collector and a business.
The need to be worried about the NNPC has been further highlighted following a revelation by the National Economic Council last month that the NNPC was yet to remit $ 19.4 billion of the $41 billion earned between 2012 and the end of May 2015 to the federation account.