Why NNPC may sack depot managers

Some depot managers may lose their jobs in the Nigerian downstream sector of the oil and gas industry. This is according to the Nigerian National Petroleum Corporation (NNPC). 

Speaking at a retreat held in Abuja, the Group Managing Director (GMD) of NNPC, Mele Kyari said any deport manager involved in underhand dealings in the downstream sector would be sacked by the corporation. 

The GMD maintained that there was no longer room for all forms of underhand dealings that were associated with depot operations in the past, stressing that any depot manager mentioned in any corrupt act would be sanctioned with no prejudice. 

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Why this matters: It is of common knowledge that the oil industry is associated with a lot of corrupt practices and this has greatly affected the expected growth in the industry especially the downstream sector. Corruption has been identified as one major obstacle militating against the rapid growth and development of the oil industry and the economy in general. This is because it undermines good governance, and at the same time leads to the misappropriation of resources, harms both public and private sectors and particularly, it hurts the poor. 

Bribery and corruption risk is becoming an increasing concern for businesses and company executives. Firms operating in the oil and gas sector are among those that have incurred the most significant penalties.  

In its recent Bribe Payers Index, Transparency International noted that companies in the oil and gas sector were perceived to be more likely to receive bribe than those in other sectors.

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Meanwhile, crude oil theft is another concern for the NNPC, as the corporation pledged deeper collaboration with the Nigerian Navy to tackle crude oil theft and attacks on oil and gas facilities. 

Kyari was quoted to have said although the intervention of the Navy had been helpful in restoring normalcy to the system, there was a need to do more as crude oil theft was still a potent reality in the oil and gas industry.