The Nigeria Natural Resource Charter (NNRC), has advised the federal government to completely overhaul the country’s oil and gas sector.
The NNRC, a non-profit policy institute, committed to effective natural resource governance in Nigeria, also called for the restructuring of the Nigerian National Petroleum Corporation (NNPC) to make it both competitive and productive in line with international best practices.
Over the years, NNPC has consistently underperformed against the NNRC’s global best practice benchmark for optimal national oil company performance which prescribes that national oil companies be ‘accountable’ to their citizens and government, with ‘well-defined mandates and an objective of commercial efficiency.’
However, the NNRC commended the NNPC for its commitment to its TAPE agenda and its recent efforts to it by publishing the 2018 audited reports of its subsidiaries. “Still, there remains a need for greater transparency and accountability. It is expected that these practices will survive the present administration and going forward to become part of the corporate culture,” it said.
According to NNRC, holistic improvements across the NOC would “require clear and appropriate decisions and role of the NOC and how it is financed, corporate governance systems that limit political interference and allow for efficient oversight, and a commitment to transparency and accountability.”
It also expects that the NOCs that would succeed in maximising their potential enterprise value and thus maximise their revenue contribution to the nation, would be those who succeed at building strong governance along with capital and operational excellence into their culture.
Culled from LeadershipNigeria
