Nigerian National Petroleum Corporation
|Industry||Oil and gas|
|Products||Crude Oil, Gas, petroleum productss, petrochemicals,|
NNPC was established on April 1, 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigerian federal government and a number of foreign multinational corporations, which include Royal Dutch Shell, Agip, ExxonMobil, Chevron, and Texaco (now merged with Chevron). Through collaboration with these companies, the Nigerian government conducts petroleum exploration and production. In 2007, the head of the Nigerian wing of Transparency International said salaries for NNPC workers were too low to prevent graft.
The NNPC Towers in Abuja is the headquarters of NNPC. Consisting of four identical towers, the complex is located on Herbert Macaulay Way, Central Business District Abuja. NNPC also has zonal offices in Lagos, Kaduna, Port Harcourt and Warri. It has an international office located in London, United Kingdom.
NNPC Organisational Structure
The NNPC Group comprises the NNPC Board, the Group Managing Director's office, Eight Directorates as listed below. Each of the Directorates is headed by a Group Executive Director (GED). Its Divisions are headed by Group General Managers (GGM) while its subsidiary companies are headed by Managing Directors. NNPC has several subsidiaries, two partly owned subsidiaries and 16 associated companies.
- Exploration and Production
- Refining and Petrochemicals
- Commercial and Investment
- Finance and Accounts
- Corporate Services
- Gas and Power
- Engineering and Technology
- Business Development
Divisions and Subsidiaries:
|National Petroleum Investment and Management Service (NAPIMS)||Nigeria LNG Limited (NLNG)|
|Cost Engineering Division (CED)||Nigerian Petroleum Development Company (NPDC)|
|Research and Development (R&D)||National Engineering and Technical Company (NETCO)|
|Engineering & Technology Division (ETD)||Pipelines and Products Marketing Company (PPMC)|
|National Frontiers Exploration Services (NFES)||Nigerian Gas Company (NGC)|
|Liquefied Natural Gas Division||Integrated Data Services Ltd (IDSL)|
|Group Public Affairs Division (GPAD)||Warri Refining and Petrochemicals Company Ltd (WRPC)|
|Special Projects||Kaduna Refining and Petrochemicals Company Ltd (KRPC)|
|Renewable Energy Division (RED)||Port Harcourt Refining Company (PHRC)|
|Nigerian Content Division (NCD)||NNPC Retail Ltd|
|Upstream Business Development Division||Nigeria-Gazprom Ltd (NiGaz)|
|Group Human Resources Division||NIKORMA Transport Ltd (NIKORMA)|
|Audit Division||NIDAS Marine Limited|
|Information Technology Division||Hydrocarbon Services Company Nigeria Ltd (HYSON)|
|NNPC Medical Services||NNPC Pension Fund Ltd|
|Corporate Planning and Development Division||Duke Oil Services Ltd (UK)|
|Gas Master Plan||Calson Bermuda Ltd|
|Greenfield Refineries||NNPC Properties Ltd|
|Power Division||Brass LNG Limited|
|Crude Oil Marketing Division (COMD)|
|Downstream Business Development Division|
|Regulatory & Policy Compliance|
NNPC has sole responsibility for upstream and downstream developments, and is also charged with regulating and supervising the oil industry on behalf of the Nigerian Government. In 1988, the corporation was commercialised into 11 strategic business units, covering the entire spectrum of oil industry operations: exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. The subsidiary companies include:
According to the Nigerian constitution, all minerals, gas, and oil the country possesses are legally the property of the Nigerian federal government. As such, the oil corporations operating in Nigeria appropriate portions of their revenue to the government, which accrues nearly 60% of the revenue generated by the oil industry in this manner. The revenue gained by the NNPC accounts for 76% of federal government revenue and 40% of the entire country's GDP. As of 2000, oil and gas exports account for 98% of Nigerian export earnings.
Corruption at the NNPC
In December 2011, the Nigerian government permitted a forensic report conducted by KPMG to be published. The audit, commissioned by the Ministry of Finance following concerns over the NNPC’s transparency, detailed the NNPC’s sharp business practices, violation of regulations, illegal deductions of funds belonging to the state, and failure to account for several billions of naira that should go to the federation account.
Willbros Group Inc
In May 2008, Willbros Group Inc, a US company, admitted to making corrupt payments totalling over $6.3 million to officials at the NNPC and its subsidiary NAPIMS, in return for assistance in obtaining and retaining contracts for work on the Eastern Gas Gathering System (EGGS).
ABB Vetco Gray
In July 2004, ABB Vetco Gray, a US company, and its UK subsidiary ABB Vetco Gray UK Ltd, admitted to paying over $1 million in bribes to officials at NNPC subsidiary NAPIMS in exchange for obtaining confidential bid information and favourable recommendations from Nigerian government agencies.
In November 2013 after a report was published by Swiss Non-governmental advocacy organization - Erklärung von Bern - allegations of heavy fraud surfaced, placing the NNPC under suspicion of siphoning off $6.8 billion in crude oil revenues.
On the 9th of December 2013, a letter from the Central Bank of Nigeria (CBN) Governor to the President of Nigeria, Goodluck Ebele Jonathan, dated 25 September 2013 showing details that the NNPC had not remitted over $49.8 billion proceeds of crude oil sales to the Government surfaced. Investigations later showed that out of the unremitted $49.8 billion, $20 billion was actually embezzled. No staff of the NNPC or Ministry of Petroleum has so far been punished, though on Thursday, 20 February 2014, the whistle-blowing CBN Governor was suspended from office by the President.
- "Reforming the oil industry". The Economist (The Economist Newspaper Limited). 2007-09-29.
- Musikilu Mojeed (9 December 2011). "Monumental Oil Subsidy Fraud And Corruption At The NNPC-The Damning KPMG Report :Premium Times". Sahara Reporters.
- ENERGY AND NATURAL RESOURCES (22 November 2010). "Current State Assessment Report on the Process and Forensic Review of the Nigerian National Petroleum Corporation (Project Anchor)" (PDF). Federal Ministry of Finance.
- Department of Justice (14 May 2008). "Willbros Group Inc. Enters Deferred Prosecution Agreement and Agrees to Pay $22 Million Penalty for FCPA Violations". Department of Justice.
- Department of Justice (6 July 2004). "ABB VETCO GRAY, INC. AND ABB VETCO GRAY UK LTD. PLEAD GUILTY TO FOREIGN BRIBERY CHARGES". Department of Justice.