MANAGING CHANGE IN NIGERIA NATIONAL PETROLEUM COMPANY: STAKEHOLDERS' CONCERNS, CHALLENGES AND THE WAY FORWARD

Abstract

: The enactment of the Petroleum Industry Act (PIA) 2021 by the Federal Government of Nigeria marks the culmination of a 20-year effort to reform the oil and gas sector, creating a conducive environment for growth and addressing community grievances. This study utilizes a change management approach, employing a portfolio management framework to assess the preparedness of the Nigeria National Petroleum Company (NNPC) and industry stakeholders for implementing the Act's stringent timeline. Drawing on chaos theory and complex systems theory, the research examines the challenges of change management in the oil and gas industry, considering cultural differences, miscommunications, and coordination issues among multinational players. The study emphasizes the importance of cultural, historical, and leadership factors, along with policies, processes, accountability hierarchy, change agenda, human resources, and technological integration in assessing change readiness and preparedness. The findings reveal that stakeholders and other predictors hinder favorable change execution, emphasizing the significance of change management in assessing readiness. Additionally, the study highlights the need for deep reform in the NNPC and the potential benefits of privatization, with a commerce-oriented board and direct public ownership. Recognizing the interdependencies within the petroleum industry, the research underscores the importance of identifying and integrating systems in the change plan. By contributing to the understanding of how PIA implementation affects industry players' willingness to change, this study offers implications for oil and gas firm managers and policymakers to enhance change management preparedness. This study recommends transparency, accountability, and a business model that benefits the country, thereby repositioning the new NNPC into a new style and philosophy, akin to successful entities like Saudi Arabia's Aramco and Brazil's Petrobras.