- Following the launch of new NNPC, President Muhammdu Buhari has set a new target
- In his speech at unveiling, Buhari stated that the new NNPC has been repositioned for growth
- The new NNPC will now be regulated by the Corporate Affairs Commission under the Companies and Allied Matter Act
President Muhammadu Buhari officially unveiled the new brand of the Nigerian National Petroleum Company (NNPC) Limited.
The unveiling was done on Tuesday, 19 July 2022 at the State House, Abuja, to usher in some provisions of the Petroleum Industry Act (PIA).
The new NNPC limited will now operate as a private energy company.
Mele Kyari will be addressed as Group Chief Executive Officer (GCEO) rather than group managing director.
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A new era for Nigeria industry
During the unveiling, Buhari said the PIA had given the Nigerian petroleum industry a new mandate, with benefits such as
“improved fiscal framework, transparent governance, enhanced regulation and creation of commercial-driven and independent national oil company that will operate without relying on government funding.”
What to expect from the new NNPC Limited?
During his speech at the unveiling, President Buhari said the NNPC Limited would now operate without expecting financial backing from the Federal Government.
Buhari explained that neither would it be mandated to transfer its revenue to the treasury single account as required from other government-owned corporations, as NNPC becomes a private firm.
The president added that it would be free from institutional regulations, such as the treasury single account, public procurement and fiscal responsibility act.
However, Buhari said NNPC will operate under the oversight of international law as it relates to the oil industry.
“It will of course, conduct itself under the international business practices in transparency, governance and commercial viability.
“NNPC Limited will operate in a commercial, independent and viable national oil company at par with its peers around the world.”
He added that NNPC is mandated by law to ensure Nigeria’s national energy security is guaranteed.
Buhari also said NNPC limited will support sustainable growth across other sectors of the economy as it delivers energy to the world.
NNPC is now Nigeria’s biggest company by shares capital
Legit.ng reported that President Muhammdu Buhari will, Tuesday, 19 July 2022, officially change the status of the Nigerian National Petroleum Company Limited (NNPC) to become a fully Limited Liability Company.
NNPC's operations will now be fully compliant with the terms of the Companies and Allied Matters Act (CAMA) of 20. This means that the general public can now buy and sell NNPC shares, but not yet.
NNPC, on the other hand, established an initial share capital of N200 billion when it was incorporated with the Corporate Affairs Commission.