World Bank Gives Kachikwu Thumbs Up on NNPC Reforms (By Akinrinde, Ibukunoluwa Jeremiah)

Email: ibukunoluwaakinrinde@gmail.com

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The Managing Director of the World Bank, Mulyani Indrawati, expressed her positive impression about the efforts of Kachikwu in reforming the Nigerian National Petroleum Corporation (NNPC). The most recognized of Kachikwu’s reforms by Indrawati was the NNPC business model and its ’20 Fixes’ on the ground that it has reformed the corporation for profitability and transparency. Other reforms include the reduction and audit of running costs, the restructuring of corporate centres and staff, the renegotiation of existing contracts including Production Sharing Contracts (PSC), the streamlining of subsidy management, the improvement of security of the country’s critical petroleum pipelines, the monetization of the cost of gas flaring, the introduction of the commercial governance model for running the refineries, etc.

The impact of this restructuring efforts is geared towards closing the infrastructure gap and the funding gap experienced by the sector. Thus, Kachikwu requested the World Bank to lend technical support in achieving these ends. Understanding that the World Bank is the International Bank for Reconstruction and Development (IBRD), the gaps in the NNPC fall within its core competence and the visit of Indrawati seem to be an opportune moment to seek the World Banks’ assistance in developing a strong institutional framework and providing the required manpower for the development of the Ministry of Petroleum Resources and the NNPC.

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