The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced plans to transition to a cloud-based procurement system on the SAP Ariba network starting January 1, 2025.
This move, part of the company’s broader digital transformation strategy, is aimed at enhancing its business capabilities, improving competitiveness, and boosting performance in the oil and gas sector.
In a statement shared on X on Thursday, NNPC’s Chief Supply Chain Officer, Uzoma Emelife, described the transition as a major step toward modernizing the company’s procurement process.
He noted that the digital platform would provide a secure and exclusive marketplace for the end-to-end procurement of goods and services, ensuring greater efficiency in contracting.
To prepare stakeholders for the change, NNPC Ltd. will host a Suppliers’ Summit on December 3, 2024, under the theme, “Reshaping the Future of Procurement and Supplier Management.”
The summit aims to connect vendors with contracting opportunities on the SAP Ariba platform and equip them with the knowledge needed to navigate the new system.
The transition to SAP Ariba is expected to streamline all stages of procurement, including the issuance of Requests for Quotations (RFQs) and Requests for Proposals (RFPs), bid submission and evaluation, contract negotiations, issuance of purchase orders, and invoice processing.
According to the statement, the platform will minimize human interface, enhance transparency, and promote best practices in procurement.
NNPC highlighted that this move aligns with the Presidential Directive on the Reduction of Petroleum Sector Contracting Costs and Timelines for 2024.
By embracing a digital platform, the company seeks to cut costs, reduce delays in contract execution, and improve operational effectiveness in the oil and gas industry.
The Suppliers’ Summit will provide attendees with practical insights into registering and creating supplier profiles on the platform, navigating its functionalities, understanding procurement workflows and timelines, and adopting best practices for collaboration.
NNPC Ltd. emphasized that the event represents an opportunity for vendors to integrate seamlessly into the new system.
The Chief Corporate Communications Officer of NNPC Ltd., Mr. Olufemi Soneye, described the initiative as a testament to the company’s commitment to fostering trust and collaboration with its suppliers while modernizing its operations.
“This transition will enhance suppliers’ experience, improve process transparency, and drive efficiency across the petroleum industry’s contracting cycle.”
The national oil company called on its vendors to actively participate in the process, ensuring a smooth transition to the SAP Ariba platform by the implementation date.
The move, the company noted, underscores its dedication to leveraging technology to drive innovation and excellence in the Nigerian oil and gas sector.
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