NNPC’s Group Managing Director, Mr. Andrew Yakubu

By Chineme Okafor

A major milestone in the drive to transform the Nigerian National Petroleum Corporation (NNPC) into a standard national oil company was Wednesday attained with its official cut-over to the System Application Products (SAP).

The migration, it was gathered, will effectively launch the Corporation into the league of major global companies that run the SAP business solution which is expected to help it attain seamlessness in its operations.

In a statement from the acting Group General Manager Public Affairs of NNPC, Fidel Pepple, in Abuja, the solution which came on live after rigorous user acceptance tests, internal and external quality assurance reviews, is designed to help the Corporation standardise and streamline its systems and processes in line with global best practices.

The statement quoted the Group Managing Director of NNPC, Mr. Andrew Yakubu to have explained at the launch of SAP that after test-running SAP in parallel with the existing SUN system for over 14 months, the management is convinced that the solution will help the Corporation achieve a seamless integration of its processes and systems.

Yakubu said: “In addition, the philosophy of the SAP solution compels the adoption of a central procurement organisation to enable seamless Process-to-Pay, engender transparency, drive value for money and process efficiency.”

He disclosed that a supply chain organisation for the NNPC Corporate Headquarters will be formed to midwife the process on a pilot basis.

The GMD also stated that procurement of goods and services in all NNPC Strategic Business Units (SBUs) and Corporate Service Units (CSUs) must be routed through the supply chain organisation, adding that staff members of NNPC must brace up for the minor teething problems which are expected in major technology initiative of such  magnitude.

Accordingly, the solution is aptly described by SAP Africa, representatives of the patent owners in Africa as the biggest public sector SAP deployment in the continent; the system will also help NNPC access information real time, maintain a single data source, facilitate integration and collaboration across operating companies.

The corporation will also be able to compare and analyse detailed financial performance across the organisation, achieve visibility of hydrocarbon value chain and attain  seamless reporting with international oil companies at the same time improve skill development of NNPC among other benefits.

The statement also stated that the cut-over to SAP event which also coincided with the 100 days in office of the current NNPC management provided an opportunity for the Corporation to take stock of some remarkable milestones within the period.

The GMD noted that despite the myriads of challenges in the downstream sector, the NNPC has continued to sustain the supply and distribution of petroleum products across the country even at great peril to its staff members and facilities.

He stated that the recent violent attack on NNPC pipeline repair crew at Arepo in Ogun State which resulted in the death of some personnel is of serious concern, noting that management is doing everything possible to prevent future occurrence.

“Also worrisome is the increasing cases of kidnap of staff members and families, piracy and other forms of harassment. The NNPC management is however working with security agencies to ensure safety of personnel and family members,” he said.