WHAT IS NNPC? NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC)
The Nigerian National Petroleum Corporation (NNPC) is a body charged with the development and management of Nigeria’s Petroleum resources.
It was established in 1977 and was assigned the responsibility of exploration, production and refining of petroleum, as well as distribution and foreign marketing of crude oil and petroleum products
The roles of the Nigerian National Petroleum Corporation (NNPC) include:
- Regulatory functions: The Nigeria n National Petroleum Corporation (NNPC) was set up to regulate the activities of the oil companies in Nigeria e.g. issuance of licenses for oil exploration, oil prospecting and j operation of filling stations.
- Exploration of oil: NNPC is charged with the responsibility of: exploration in the country, i.e. se for the presence of oil.
- Petroleum production: The Nigerian National Petroleum Corporation responsible for the sinking controlling of its own oil wells1 purpose of producing crude oil.
- Petroleum refining: One of the organization’s functions is to supervise the refining of petroleum in order to get its products like petrol, diesel and kerosene.
- Oil transportation: NNPC is equally responsible for the transportation of crude oil and the refined products from areas of production to areas where they are required by the use of tankers and pipelines.
- Marketing of petroleum products: The corporation is the organ responsible for the distribution and marketing of petroleum products, e.g. kerosene, diesel, petrol and cooking gas.
- Oil policy implementation: The Nigerian National Petroleum Corporation is also the organ through which the government implements its oil policies, e.g. Production levels, transportation arrangement and determination of prices of products.
- Employment: NNPC was set up to generate employment for various categories of Nigerians.
- Manpower development: The Corporation is also charged with the responsibility of training Nigerians in various aspects of petroleum activities. It is able to do this through the establishment of the Production Training Institute in Warri, Delta State.
HOW THE NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC) CAN ACHIEVE INTERNAL ECONOMIES OF SCALE
(1) Establishment of training institutes: The Corporation should have its own training institute, award scholarship to its workers and organize in-service training for its workers.
(2) Use of modern technology: NNPC should apply the use of advanced machines, employ many workers and the application of division of labour which will increase its output and lower the cost per unit.
- Provision of welfare facilities: The Corporation should provide better welfare facilities such as housing scheme, canteen, medical services and transport scheme that will motivate its workers for improved efficiency.
- Establishment of managerial experts: NNPC should establish its own research
laboratory and employ competent researchers to man it.
- Employment of managerial experts: With its sound financial standing and large size, the Corporation should employ managerial experts indifferent fields.
- Bulk purchase of raw material: NNPC should buy its raw materials in bulk, which will
lower the prices and get large discount, sell in bulk, and save packing and transport costs and possibly should have its own means of advertising on a large scale.
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