The Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu has received commendations from the World Bank on reforms and transparency brought so far into the operations of the NNPC and the entire oil and gas industry in Nigeria.
A statement from the Group General Manager, Public Affairs of NNPC, Mallam Garuba Deen Muhammad, in Abuja contained this development.
According to the statement, Managing Director of the bank, Sir Mulyani Indrawati, said this when she paid an official visit to Kachikwu in his office in Abuja.
According to Indrawati, the ‘20 fixes’ introduced by Kachikwu to the NNPC business models have gone a long way to reform the corporation for profitability.
She said the bank was ready and available to offer the ministry of petroleum resources technical support, advice and funding.
She stressed that adoption of sound policy thrusts was key in the areas of fiscal direction, gas flare out and gas to power for Nigeria.
In response, Kachikwu said since assumption of duty in August last year, a lot of reforms ranging from the first phase of restructuring and the recent restructuring have served as enablers for the introduction of new business models that have drastically reduced the losses recorded by the NNPC in the past.
“We first started with the softer issues which were transparency issues, governance, restructuring and that was going well when we went straight into the business model.
“For example when we came in, the NNPC was recording huge losses and we have been able to reverse that trend and if we continue with that sort of trajectory then we should be able to record profit in the near future,” said Kachikwu.
Kachikwu urged the World Bank to offer support in the area of institutional framework and training for the ministry and NNPC, adding that the training would provide the necessary skill sets that are required to grow Nigeria’s oil and gas industry.