23536
Nigerians Impatient for Oil Sector Reforms
Energy

Nigerians Impatient for Oil Sector Reforms

Nigerian President Muhammadu Buhari's appointment of a Harvard-educated lawyer to run the state oil company demonstrates his anti-corruption resolve, which only marks the start of a long reform journey, analysts say.
Industry observers note the formidable challenge he faces in sanitizing a sector that accounts for 70% of the country's revenue, but which is notorious for mismanagement and rampant theft, according to AFP.
Buhari took office May 29 after being elected on an anti-graft ticket, pledging to recover "mind-boggling" amounts of stolen oil money and bring those responsible to book.
In early August, he appointed Emmanuel Ibe Kachikwu, a former executive vice chairman of Exxon-Mobil Africa, to head the Nigerian National Petroleum Corporation after sacking the entire board.
Speaking to journalists in the capital Abuja on Thursday, Kachikwu fired an opening salvo, promising to uproot NNPC's "anything goes" culture and warning underperforming employees will lose their jobs.
"At the end of the day, NNPC is not a public service. It is a corporation and it is going to be run like a company, generating money and profit for Nigerians," Kachikwu vowed.
John Campbell, a senior fellow for Africa policy studies at the Council on Foreign Relations, told AFP success in combating corruption within the oil industry would require "a revolution in governance".
He welcomed the appointment of Kachikwu, a manager with decades of private sector experience, as a clear signal of the president's reform agenda which "fits the pattern of Buhari appointing technocrats based on merit."
But he was less optimistic on the new leader's chances of cleaning up the industry, asking: "Can a tiger change its stripes?"
Buhari was the oil minister responsible for the launch of the NNPC in 1977, now a joint venture with 24,000 workers between the government and multinational corporations, including ExxonMobil, Chevron and Royal Dutch Shell.
The former military ruler reputed for his autocratic stance on corruption and "indiscipline" is two months into his presidency and has yet to appoint a Cabinet, let alone an oil minister.

  Baba Go Slow
Analysts have complained that he has been vague about achieving his goals, and have voiced frustration at his slow pace.
"Buhari's critics call him 'Baba Go Slow' and argue that the policy inertia was an inevitable development arising from the complexities of a young and ideologically diverse election coalition," Ronak Golpaldas, a sovereign risk analyst at South Africa's Rand Merchant Bank, told AFP.
"However, his supporters have urged patience, arguing that the delays are indicative of a deep desire to create the foundations for sustained economic growth via credible and technocratic appointments."
Africa's largest economy and most prolific oil producer churns out roughly two million barrels of crude per day, but ordinary people have not benefited. Two-thirds of the nearly 180 million population live on less than a dollar a day.
Buhari has accused the previous administration of Goodluck Jonathan of leaving the treasury "virtually empty," and is struggling to reinvigorate an oil-dependent economy weakened by the halving of crude prices since 2014.
He has ordered a review of oil-swap contracts, alleging 250,000 barrels of crude a day were stolen during the previous regime, with the profits going into individual bank accounts.

 

Short URL : http://goo.gl/y0JSQT

You can also read ...

Technology and big data will change how electric grids are...
The Central Asian country is particularly interested in methanol-to-olefin projects.
Uzbekistan is willing to have a stake in Iran's petrochemical...
South Pars gas supply equipment
Iran has exported 5.4 billion cubic meters of natural gas to...
Poles Looking to Extract Crude in Kermanshah
The National Iranian Oil Company is studying the development...
Gazprom Speaks Out Against OPEC Output Cut Extension
While OPEC is said to be mostly leaning toward a nine-month...
India Eyes Venezuelan Oil Import
Indian Oil Corp is considering buying Venezuelan crude for the...
US Crude Hits 2-Year High
Oil prices spiked on Wednesday with US light crude hitting...

Trending

Googleplus