BPSR Partners SPARC On Community of Practice.

The Bureau of Public Service Reforms (BPSR) is partnering with State Partnership for Accountability, Responsiveness and Capability (SPARC), a programme of DFID to establish a Community of Practice. 

It is a scheme on how the Federal Government can exchange knowledge on areas of expertise with State Governments and vice-versa. 

Speaking at the consultative meeting in Abuja recently, the Director General of the Bureau, Dr Joe Abah said that the Bureau is engaging with many NGOs and Agencies on areas of knowledge sharing. He added that the Federal Government’s new capacity building programme, performance management initiative and employee mobility system are some programmes that the Bureau can share with State Governments. 

He added that as an example, Lagos state’s wealth of experience in revenue collection strategies are also knowledge that other tiers of Government can share from. 

Earlier in her address, the Deputy National Proramme Manager of SPARC, Hadiza Elayo said that SPARK in now operating in ten States of the Federation and that it is an opportunity for Federal and State linkages to foster development of a Community of Practice.


CLICK TO READ SEPTEMBER'S EDITION OF REFORMER MONTHLY.

BPSR Develops Self-Assessment Tool For Agencies And Parastatals..

The Bureau of Public Service Reforms (BPSR) has developed a SELF-ASSESSMENT TOOL (SAT) for Agencies and Parastatals to enable them ascertain if they are delivering goods and services to Nigerians as at when due.

The operations of SAT was introduced to members of staff of BPSR by a team of Consultants during a one day workshop held recently in Abuja.

SAT has 117 questions ranging from Strategic Governance to Change Management among others. The questions have four options and brief instructions and are scored on the acronym: GABR (Green, Amber, Brown and Red). Red where the issue needs attention, Brown for developing area, Amber for well-placed and Green for excellent. The section results are then aggregated to provide an overall final result as well as specific and section scores.

Asked if SAT cannot be abused by organizations who may overate their score, the DG BPSR, Dr. Joe Abah responded that the most important aspect is taking the test, after which BPSR monitors to ascertain the claims. Where satisfied, it issues certificate of competence or otherwise.
Furthermore, the DG stressed that the test should not be seen as a punitive measure but as a means of stock taking so as to address areas of shortfalls.

CLICK TO READ SEPTEMBER'S EDITION OF REFORMER MONTHLY.

VIDEO: Dr. Joe Abah talks about September 2015 Edition of Monthly Reformer.

In the video above, the Director General Bureau of Public Service Reforms (BPSR), Dr. Joe Abah talks about some of the activities of the agency covered in September's edition of Monthly Reformer, the agency's electronic newsletter.

Your thoughts and suggestions are welcome.


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DR. JOE ABAH WELCOMES YOU TO SEPTEMBER'S EDITION OF REFORMER MONTHLY...

Publisher's note 

Dr Joe Abah - Director General

Bureau of Public Service Reforms

Welcome to the September edition of the Reformer Monthly. In September, we saw an increasing appetite by State Government to work more closely with the Bureau of Public Service Reforms. 

We are grateful to have the cooperation of FEPAR and SPARC, both DIFID programmes, who are working with us to put in place a community of practice on governance reforms that we can share with the State Government, and it is an exciting development for us and we would tell you more about it as the month and weeks progress. September also saw the Bureau rated as one of the most transparent government agency in the country. An organisation called The Public Private Development Center, rated 116 public sector organisation and the Bureau was rated the 7^th most transparent. 

Most of the rating was done on responsiveness to procurement information as well as public disclosure. So while the Bureau has made substantial progress to have been racked 7^th, there is a lot more that we need to do. We are already working with that organisation and the Right to Know initiative to ensure that we can improve on our future ratings and improve our compliance with the freedom of information act and also to respond to the open government idea.

Significantly, the Bureau has recently completed the development of the Self-assessment Tool, which agencies and parastatals can use to assess their performance against national and international best practice and that assess performance in areas such as strategic governance, strategic planning, human resource management, financial management, procurement and service delivery. 

It has a 117 questions on which agencies can rate themselves independently about how they fair and if they want a more rigorous assessment, the Bureau facilitates a rigorous assessment through which we would ask for proof for every score that they give to themselves. We have identified six pilots for this initiative and by the next edition, we would be able to update you on how far we have gone with regards to this initiative.

The Bureau partnered with the Office of the Head of the Civil Service of the Federation to put in place a new capability building programme for civil servant and that programme was successfully launched on the 7^th of September and shortly afterwards, I had the privilege of addressing the participants on current governance reform efforts in the country, and that went very well and I hope to be able to repeat that with successive participants in the programme.

Finally, we are working with the Budget Office of the Federation to put in place a seminar on budgeting for change to see how we can reform the budgeting process to be able to deliver the governments change agenda. Again, that is an exciting opportunity for us, given that the government is currently working on enforcing the Treasury Single Account and putting in place zero based budgeting as well. So how that develops into the 2016 budget, is an exciting area that we need to bring more awareness to.

I hope you enjoy this September edition. Thank you for subscribing to the Reformer Monthly.




CLICK TO READ SEPTEMBER'S EDITION OF REFORMER MONTHLY.

The Revitalisation of the Nigerian Police Force and its REFORMS.

Problem: The Nigerian Police Force suffered decades of neglect, which led to poor funding, weak operational efficiency, high levels of corruption and low morale among police officers.

Reform Actions:
- Effective Implementation of Policies
- Improved Funding
- Improved office and residential accommodation
- Improved operations
- Enforcement of rules
- Improved recruitment, promotion and discipline
- Improved training

Main Achievements: The reforms have seen a revitalisation of the Nigerian Police Force. Funding has improved, compared to what it was in the past and some barracks have been renovated. The police is also now better equipped than it was in the past. Also, there have been significant improvements in the recruitment, promotion and discipline arrangements in the Force.

Key Challenges: Funding; Administrative Coherence; Operational Efficiency; and Corruption. 

Reference:  Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review

Click to view Compendium 

President Buhari's strong morale-boosting remark rekindles civil servants confidence and self-esteem.

As the Senate concludes the screening of ministerial nominees, those interacting with federal civil servants would have noticed that the morale of the civil servants has been boosted by the pronouncements and actions of President Muhammadu Buhari, which has further given credence to the relevance and importance of the civil service as a key instrument in public sector governance.

It may be recalled that the president had told a French television station in an interview during his visit to Paris on September 16th, 2015, that Nigerian civil servants are there, working to ensure continuity in governance despite the delay in appointing ministers, the political heads and chief executives of government ministries.

The context was that the television anchor wanted to know from the president whether the delay in appointing ministers to assist him in running the affairs of the country had negative impact on governance. The resident explained that: “… The civil service provides the continuity; the technocrats are the ones that do most of the work. The work is being done by the technocrats. They are there; they have to provide the continuity, dig into the records and then guide us, (those of us) who are just coming in.”

“They have been there, some of them for 15 years, some for 20 years,” the president said in a clear allusion to the importance of experience and the inherent preservation of institutional memory for which the bureaucracy is known.

The morale-boosting presidential comments came at a crucial time when civil servants were inundated with chilling, but unfounded, rumours of a possible retrenchment or rationalisation of the service in line with the envisaged reduction in the number of federal ministries and the supposition that the service is bloated and incapable of implementing the changes promised to Nigerians by the Buhari administration.

A newspaper report had claimed, of course falsely, that the administration has directed the retirement of officers who have less than two years to have spent 35 years in the service or to attain the fixed retirement age of 60. The story was found to be false and the Office of the Head of the Civil Service of the Federation issued a statement debunking the news report thus: “The said story is false and not true. At no time has the office issued the said memo or gave a directive to that effect. The report is baseless and lacks credibility as it contradicts public service rules of engagement.”

Soon after the strong morale-boosting presidential remarks during the television interview in France and the dismissal of the early-retirement rumours by the Head of the Civil Service of the Federation, President Muhammadu Buhari issued a directive for the payment of all outstanding salary arrears and allowances due to federal civil servants without delay. This measure further lifted the spirit of the civil servants, who for once jubilated loudly in public, thus getting heard, in addition to being visible, as a happy lot.

It can be recalled that some weeks earlier, millions of civil servants in 27 states of the federation who were owed salaries and allowances by their employers, in some cases running into many months, celebrated the announcement of a financial bailout facilitated by the federal government for the purpose of paying them. Through the arrangement, the states concerned are accessing a Central Bank of Nigeria (CBN) facility worth N388 billion for offsetting the backlog of workers’ salaries and allowances.

The bailout was key to ending unhappy periods of prolonged strikes by teachers, health workers and other government employees, thus causing public discomfort as services rendered by the workers were no longer available to meet the needs of the populace.

The pronouncement and action of the president had equally resulted in less number of staff reporting to work late or closing early. This was reinforced by the on-going early-morning surprise visits to ministries by the Head of the Civil Service of the Federation, Dr. Danladi Kifasi, who continually emphasised that civil servants must be on their duty posts by 8.00 am each working day.

It is also clearly evident that staff confidence and self-esteem have risen; they are highly motivated to work harder, the gain being improvement in commitment and service delivery by the ministries, extra-ministerial departments and agencies (MDAs).

As for other institutions such as the military, Nigeria Customs Service and the Nigerian National Petroleum Corporation, the praises and clear guidance and directives the president issued to them have served as a jab that reinvigorated them, with visible greater effectiveness in their operations.

Nigerian military in particular, which is getting the highest-level of political support and the requisite logistics backing from the administration, are doing what is expected of them – the repelling and decimation of insurgents that in the past seemed hard to defeat.

It is also certain that the government’s desire to attain some measure of self-reliance in the acquisition of weapons and other hardware for the armed forces by proposing to establish a modest domestic military industrial complex, has renewed and deepened the sense of pride in our uniformed compatriots.

Similarly, the steps taken by the administration to ensure the welfare of officers and soldiers in the theatres of battle against Boko Haram and other armed groups, have contributed in the battle-field success against the Boko Haram insurgents, other militants and cattle rustlers.

There is no doubt that the presidential expression of confidence in the civil service of the federation and other institutions such as the military and the Nigerian Customs Service among others, has the positive impact of rekindling the inherent patriotism of the staff of those institutions.

The incoming ministers will soon come on board to work with institutions and personnel that are ready to support them in the implementation of policies and projects with dedication for the administration to meet the legitimate high expectations of Nigerians for social and economic change which will improve their wellbeing. 

(Leadership Nigeria)

Dambatta is a federal director of information 

Federal Capital Territory Administration (FCTA) REFORMS.

0. 
   
   Problem: The territory has been heavily faced with critical bureaucratic bottlenecks and other associated issues such as land administration, housing, infrastructure provisions, transportation and traditional instability, amongst others, due to the influx of people from across the states of the federation.
   
   Reform Actions
   - In April 2010 the FCTA set up a 17-Man Committee to Chart a Roadmap for the Sustainable Development of the FCT
   - In August 2011 the Honourable Minister of FCT, constituted a Committee on the Restructuring and Reorganisation of the FCT Administration with the mandate to:
   
- Restructure and reorganise the Secretariats, Departments and Agencies (SDAs) for better performance
- Recommend optimum utilisation of human capital
- Recommend ways of improving existing infrastructures 

Main Achievements
- Synergies have been created between Secretariats, Departments and Agencies (SDAs) to work together in attaining the goals and vision of the FCT.
- All the sectors of the FCTA have seen transformation with collaboration of private sector in transportation, health service improvements leading to a reduction in infant mortality and an improvement in education services.
- Road accidents have reduced
- Increased access to potable water and
- FCTA have seen increased implementation of policies, programmes, initiatives and schemes that will facilitate the development/provision of infrastructure.

Key Challenges
- Inadequate funding;
- Absence of enabling laws in some Agencies;
- Weak systems and processes that allow leakages in the Revenue Collection System;
- Lack of full implementation of some completed reports such as the Road Map for Sustainable Development - 2010, and the Restructuring and Reorganisation of FCTA - 2011. 

Reference:  Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review

Click to view Compendium 

Vice-President Yemi Osinbajo Opens up on Public Sector Reforms, Rationalisation of MDAs.

Vice-President Yemi Osinbajo 

More insight was provided into the policies of the Muhammadu Buhari administration when Vice-President Yemi Osinbajo announced that the government had embarked on a process to retool public institutions to make them more proactive and effective in service delivery to Nigerians.

In this regard, he said public sector reforms had become critical for accountable and transparent use of national resources.

He said the main objective was to enhance the capacity of the institution to deliver public goods effectively in response to citizens’ needs and demands.

Speaking in Abuja at the ongoing 21st Nigerian Economic Summit (NES), he also said there would be no sacred cow in the reforms that would be undertaken, adding the same rules would apply to “all of us”.

He specifically argued that change was needed among the elite, which often works to subvert laid down rules.

Speaking during a round-table discussion on reforming public institutions to ensure competitiveness and accountability, he said government also hopes to create an environment for the respect of human rights and the rule of law in order to enhance competitiveness in the private sector.

He further foreclosed that government would review its tax regime to raise its non-oil revenue base, stressing that revenue collection would only have to be more efficient to improve collections.

Other initiatives outlined by Prof. Osinbajo included the Treasury Single Account (TSA), Integrated Personnel Payroll Information System (IPPIS), Government Integrated Financial Management Information System (GIFMIS), adoption of zero-based budgeting, bottom-up economic planning model, the Anti-Corruption Committee and capacity building for public servants.

He said federal agencies currently had overlapping functions and responsibilities without a positive working relationship among them, which he added made several ministeries, departments and agencies (MDAs) work at cross-purposes without harmony in project execution.

“At the moment, the MDAs are accused of unhealthy competition and this claim has led to the silly mindset that MDAs do not talk to each other enough.

“We found out that many MDAs are executing the same projects and programmes and sometimes achieving similar results without necessarily talking to each other at all.  That we believe is a waste of resources.

“We must streamline the work of the ministries and be sure there is sufficient information going on among them and there is a clear part in line with the policy direction of government.

“One of the basis of our zero budgeting process is that it takes into account this particular issue because everyone will be working towards a particular policy direction and we will also be very conscious of how much the institutions are doing in complying with the policy.

“Also in the civil service, we are putting mechanisms in place to enhance service delivery; we are engaging the agencies into an atmosphere where everyone can make an input on what they think should and should not be done.

“This is one of the ways we want to increase participation and we have asked the permanent secretaries to do same for the robust process of reforming the public institutions,” he explained.

Continuing, Osinbajo said government was trying to address fiscal indiscipline through the introduction of the zero budgeting system from 2016.

“The zero-based budget is a system that requires every agency to justify what its actual costs are. So every agency starts at zero naira and justifies the items in the budget, rather than the incremental budgetary system – you start at zero and justify your new budget.

“That way we believe we will be able to cut costs and easily align policies with the budget. People are working round the clock to make sure we are able to present the budget in good time; it’s a rigorous process, but we think that the process is necessary if we are going to be able to rationalise costs,” he said.

The vice-president pointed out that creating an atmosphere where corruption is stemmed would require the whole process of strict observance of the code of ethics and elimination of conflicts of interest, adding: “These are some of the discussions that we will be having with the ministers at a retreat once the ministers have been sworn in.

“The issues will revolve around issues on the code of ethics, around transparency, accountability and what the government intends to do in ensuring that each public official is held to account and transparent in their conduct, especially as they interface with the public.

“A lot of these issues are being developed daily and we are working very closely with the institutions in order to not only access their current needs, but get a sense of how the reforms will go.”

Also speaking on the enforcement of the TSA, the vice-president said: “This is not a new policy, but the difference is that it is being implemented by the current administration.

“The whole point of the TSA policy does not mean that all revenue must always remain with the CBN. But what happened in the past was that many revenue-generating agencies kept their own accounts and kept many accounts unknown to government.

“For instance, an agency like the Nigerian National Petroleum Corporation (NNPC) was running several accounts many of them not even known to the government, so as it were, there were two parallel systems of revenue and expenditure: one which is the budget appropriated properly.

“And so you will find situations where NNPC was spending and in many cases was not reflecting this in the overall size of the budget.

“That essentially gave rise to huge discussions. So it was possible for those managing the economy not to quite understand what was going on, on the one hand, which is what gave rise to the TSA policy and under this policy all government revenues must come through the central bank.

“After that any agency that needs to spend money would do so after proper appropriation. Every expenditure must be based on a budget duly presented to the National Assembly.”

In her contribution during the round-table discussion, a former Minister of Education, Mrs. Oby Ezekwesili, suggested a carrot-and-stick approach, stating that reforming the public sector to be competitive would require a system of incentives and sanctions where applicable, as well as increasing productivity levels.

She said the pressure for change had assumed a universal dimension, which required the leadership of government pushing everybody in the direction of reform.

In a related development, the Secretary to the Government of the Federation (SGF), Mr. Babachir Lawal on Wednesday directed all federal government agencies to collate and submit their procurement records for 2014 to the Bureau of Public Procurement (BPP) within two weeks or risk being sanctioned.

The SGF gave the directive in Abuja while declaring a one-day interactive session on public procurement with directorate cadre procurement officers of federal ministries organised by BPP.

Represented by the Director, Economic Policy Analysis, Office of the SGF, Dr. Ijeoma Unaogu, Lawal said punitive measures for non-compliance with the directive would include suspension of officers responsible for procurement or disposal proceeding in issue; replacement of the head or any of the members of the procuring or disposal unit of any entity or the chairperson of the tenders' board as the case may be; and disciplining the accounting officer of any procuring entity and temporary transfer of the procuring and disposal function of a procuring and disposing entity to a third party procurement agency or consultant.

The SGF stated that Nigeria was one of the few countries whose procurement regulatory frameworks and legislation is patterned after the United Nations Commission on International Trade Law (UNCITRAL) model law on public procurement.

He said as a signatory to the United Nations Convention Against Corruption (UNCAC), the country's fight against corruption was statutorily expected to shift from corrective to preventive measures.

“This will involve ensuring strict compliance with extant regulations and guidelines on public procurement.

“For avoidance of doubt, this administration strictly upholds the rule of law and as such, submission of procurement records and all other statutory requirements of the Procurement Act shall be enforced by this government.

“To this end, I hereby direct all MDAs to collate and submit their procurement records for 2014 to the BPP on or before Monday, the 26th of October, 2015,” he said.

In a statement by the BPP spokesperson, Odemwingie Thomas, the SGF further directed the procurement agency to submit the list of ministries which fail to comply with the directive to his office “for appropriate sanctions”.

The SGF welcomed efforts of the BPP to collaborate with state governments in order to domesticate the Procurement Act in their respective states to ensure that the gains of the reforms at the federal level transcend to the sub-national level.

He said: “Government will take more than a passing interest in the National Public Procurement Forum in which the bureau is already taking the lead.”

On the issue of the governing council of the bureau, he assured the MDAs that the National Council on Public Procurement (NCPP) would be inaugurated as soon as government has satisfactorily addressed the issues pertaining to the body.

ThisDay

Here are the REFORMS of the Ministry of Niger Delta Affairs.

Problem: Historical neglect of the Niger Delta region, which eventually led to serious restiveness in the region and the forceful shutdown of up to 40% of Nigeria’s oil production output.

Reform Actions:
- Establishment of NDDC
- Amnesty Programme for militants
- Establishment of the Ministry of Niger Delta Affairs

Main Achievements: The various reform efforts have brought peace to the region and are beginning to produce tangible benefits for the people of the Niger Delta. The NDDC is being restructured for greater effectiveness, there is ongoing massive infrastructural investment and various schemes to keep the youth gainfully engaged.

Key Challenges: 
(a) inadequate funding; 
(b) Insufficient coordination between the Ministry of Niger Delta Affairs and the NDDC; 
(c) late release of funds for programmes; and 
(d) environmental issues, including oil spillages and gas flaring. 

Reference:  Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review

Click to view Compendium 

Water and Sanitation REFORMS vs Nigeria's Unenviable Open Defecation World Record.

0. 
   
   Problem: There is an insufficiency in water availability in Nigeria. Only 0.02% of an irrigation potential of 3.14 million hectares is currently in use. Only 18% of an impounded water potential of 31 billion cubic metres in 200 dams is effectively utilised. Nigeria has one of the highest rates of open defecation in the world.
   
   Reform Actions:
   - Re-establishment of the Federal Ministry of Water Resources in 2010
   - Presidential Retreat on Water in 2013
   - Strengthening of Policies and Strategies on Water
   - Development of Water Sector Roadmap in 2011
   - Engagement of Stakeholders
   - Establishment of a Water Sector Reform and PPP Unit
   - Release of Annual Flood Outlook from 2013
   - Revitalisation of the River Basin Authorities
   - Completion of New Dams in 2012
   - Major Water Schemes across the country.
   
   Main Achievements: Reforms have increased access to potable water from 58% to 65% coverage, while access to improved sanitation facilities moved from 32% to 41%. Reforms have also led to rehabilitation of 12 River Basin Development Authorities and construction of nine new dams.
   
   Key Challenges: 
• (a) 60% of water in urban areas is unaccounted for; and 
  (b) Nigeria has the highest rate of public defecation in Africa and one of the highest rates in the world; the trend has worsened from 23 million people practicing open defecation in 1990 rising to 39 million in 2012; 
  (c) many rural water initiatives have failed and often produce no water beyond the date of commissioning; and 
  (d) the use of private bore holes by citizens is a major feature of this sector. 
  
  • 
    Reference:  Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review
    
    Click to view Compendium 

VIDEO: Dr. Joe Abah on ChannelsTV (Nigeria Should Focus More On Nigerian Citizens).

Dr. Joe Abah's Quote on Corruption.

"Corruption is a binding constraint; it’s a constraint that unless we tackle, we will find it very difficult to make progress. It is not limited to the public sector. We have corruption in the private sector, in the banks. It is endemic in our system.  We have it in our universities. Our students have to do what is called ‘sort the lecturer’ to influence marks."

Dr Joe Abah Speaking at Nigeria Economic Summit 2015 on efforts to Reform Nigeria’s Public Service .

Dr. Joe Abah seated in the middle at the Nigerian Economic Summit.

The 2015 edition of the annual Nigeria Econo-mic Summit kicked off on Monday with an array of private sector chieftains and government officials led by the Vice-President, Professor Yemi Osinbajo, with the focus on how Nigeria can make the tough choices necessary to over the challenge of achieving inclusive growth and global competitiveness. In this report, Peter Egwuatu  & Emmanuel Elebeke, present highlights of proceedings from the first day of the Summit. 

The annual Nigerian Economic Summit (NES) is organised by the Nigeria Economic Summit Group in collaboration with the Ministry of Planning. The last two summits focused on specific sectors.  For example, the Summit in 2013, developed key recommendations and outcomes to reposition the Agricultural sector as a business to diversify the economy, while 2014 Summit focused on Education and was themed “Transforming Education through Partnerships for Global Competitiveness.

In his contribution, Director of Bureau of Public Service Reform, Dr. Joe Abah, said, “We have made a proposal on how we want to carry out reforms  in the public service. Following that we have made reviews of agencies and parastatals.  

Public service reforms in the last two years have focused too heavily on ministries but it is the agencies that are closer to the people and that can deliver on services.   We should focus very seriously on agency reforms.   There is much duplication that has to be addressed. We should set out framework through which we can rationalize  these agencies. We need to add additional focus to what the  agencies deliver and cost of running them.

Improving the business climate, public finance and address  the dislocations caused in the past. We need to have  convergence in this process.   We have got the pressure  from the citizens, now we need the power from the government as  well as  the willingness to achieve rapid change. It is important we have a commonality of understanding of understanding for reforming public institutions.”

Source - UNCOVA 

DG, BPSR. Dr. Joe Abah is on Channels's Sunrise Daily Programme on Thursday, 15th October 2015.

DG. BPSR Dr. Joe Abah

The Director General of Bureau of Public Service Reforms (BPSR) has been invited as a guest on the early morning Channels TV programme Sunrise Daily.

He is scheduled to come on at 8.20am.

Let us know what you think.

REUTERS: OIL SECTOR REFORMS IN NIGERIA UNDERWAY. (MUST READ)

Nigerian President Muhammadu Buhari has taken his first steps towards overhauling the country's troubled state oil firm by giving its exploration joint ventures control over their own budgets as a way to overcome chronic cash shortages.

Corruption and mismanagement at the Nigerian National Petroleum Corporation have hampered an industry that provides 70 percent of state income. NNPC has been accused of failing to account for tens of billions of dollars, while no new exploration blocks have been sold since 2007.

Buhari, who took office on May 29, wants to make reform of the sprawling NNPC a priority at a time when a slump in oil prices is hammering the economy.

The former military ruler has fired the NNPC board and plans to break up the company, whose opaque structures have allowed corruption and oil theft to flourish.

To speed up an often glacial decision making process at NNPC, Buhari has given the green light to revamping several joint ventures involving its poorly managed production and exploration arm, according to a letter by NNPC head Emmanuel Kachikwu signed by Buhari, a copy of which was reviewed by Reuters.

NNPC did not respond to a request for comment but several oil sources confirmed the authenticity of the letter.

Nigeria produces about 2.2 million barrels per day of oil with foreign and local companies through production sharing contracts and joint ventures (JVs).

But projects have been held up because NNPC needs parliamentary and regulatory approval to spend anything. Officials and lawmakers are often six months late in giving their nod, making proposals irrelevant as costs exceed the original budgets. As a result, unpaid bills have been piling up.

According to the letter, the JVs will be turned into firms that control their own budgets. This will be similar to gas firm Nigeria LNG (NLNG), which finds "sources for its own funding, pays taxes and royalties and also pays dividends," the letter said.

NLNG, in which Shell, Eni and Total have stakes along with NNPC, is one of the few efficient oil operations in Africa's top crude producer.

There won't be any immediate impact on oil exploration and production from the new model, so-called incorporated joint-ventures, as it will be tested on a few blocks first. If successful, it could be expanded to other arms of NNPC, an industry source said.

But analysts see the new joint-venture structure as a sign that reforms are finally underway.

"This could be an important early indicator for a key aspect of reformed oil sector policy - how to incentivise and maintain upstream investment by local private companies, and resolve operational issues between them and NNPC," said Roderick Bruce, West Africa energy analyst at IHS.

To bypass time-consuming parliamentary approval, NNPC is expected to reduce its stake in joint ventures to below 50 percent from 55 percent by selling assets to local firms.

"Now the incorporated JV can raise funding more easily as it's a model international investors will understand and there will be a balance sheet behind the IJV," said Kola Karim, chairman of energy company Shoreline.

The letter states that this plan will apply to five oil blocks sold by Shell in 2011-2012 to local companies Shoreline Natural Resources Nigeria Ltd, First Hydrocarbon Nigeria Ltd, ND-Western Ltd, Elcrest E&P Nigeria Ltd and Neconde Energy Ltd.

It also covers West African Exploration and Production Co, which bought two licenses in 2015 from Shell.

SEARCHING FOR INVOICES

Oil traders and executives said dealing with NNPC has become more efficient under Kachikwu, who took over in August. He is expected to become junior oil minister under Buhari, who has retained the oil portfolio for himself, to oversee the industry's daily operations.

The exploration overhaul is seen as a start to further changes at NNPC after years of relative standstill under Diezani Alison-Madueke, the former oil minister under Buhari's predecessor, Goodluck Jonathan. She is being investigated by Britain for money laundering but has denied any wrongdoing.

Apart from dealing with stagnating oil production, Buhari needs to shake up the ailing refinery business, which forces the government to rely on expensive imported fuel for 80 percent of its energy needs.

Since his arrival, Kachikwu has been wading through piles of receipts in the four towers of NNPC's Abuja headquarters to get an idea what the state giant owes foreign firms, part of an audit ordered by Buhari to tackle corruption.

With oil exploration firms working more efficiently under the new model, NNPC hopes to make a small step towards reducing its pile of unpaid bills.

But uncomfortable talks loom as oil firms say they are owed as much as $7.5 billion from the past few years, while NNPC puts the amount at $6 billion.

"During Diezani, the board hardly met, so expenses were not approved. Now NNPC is saying they won't honour those that weren't approved ... the paper trail did not keep up. There has been a disconnect between expenditure and approval," a source close to the matter said.

For example, for one joint-venture project worth about $3 billion, NNPC still disagrees over $300 million spent ages ago, an industry source said.

"It'll take three months to reconcile and another six months at least to figure out how to cover it. The obligations date back three years to 2012," a banking source said, speaking of the overall debt. 

(Reporting by Julia Payne; Editing by Ulf Laessing and Giles Elgood for Reuters)