President Muhammadu Buhari plans to split Nigerian National Petroleum Corporation (NNPC) into two entities, his spokesman said.

He has said his government will trace and recover what he called “mind-boggling” sums of money stolen from the oil sector.

“Mr President will soon split the NNPC into two entities. One will be an independent regulator and the other one an investor vehicle,” said spokesman Femi Adesina, who did not a provide a timeframe for the restructuring.

It has been accused of failing to account for billions of dollars in the last few years although it has said that the money was not lost.

An NNPC source, who wished to remain unnamed, said the planned changes were long overdue.

“We can’t continue to be a regulator, a revenue collector and a business, all rolled into one. That gives room for a lot of confusion, obfuscation and misrepresentation,” he said.

Last month Buhari dissolved the NNPC board and more sackings are expected.

The president, who has said he will not appoint a cabinet until September, is widely expected to keep the petroleum portfolio for himself.

Under the constitution, the NNPC is supposed to hand over its oil revenue to the federal government, which then pays back what the firm needs based on a budget approved by parliament.

But the act establishing the state oil company allows it to cover costs before remitting funds to the government.

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