President Muhammadu Buhari has said that the transformation of the publicly-owned Nigeria National Petroleum Corporation to the commercial entity now known as Nigerian National Petroleum Company (NNPC) Limited Limited would strengthen the capacity and market relevance of Nigeria’s oil industry.
NNPC Limited came into effect on 1 July, and one of benefits of the Petroleum Industry Act (PIA) 2021. The company now has its operations and activities regulated by the Companies and Allied Matters Act.
At the game-changing event in Abuja on Tuesday, President Buhari said that NNPC Limited would now operate as a commercial oil company and deliver value to over 200 million shareholders (Nigerians) with integrity and excellence.
“This is a landmark event for the Nigerian oil industry”, the President said, adding: “Our country places a high premium on creating the right atmosphere that supports investment and growth to boost our economy and continues to play an important role in sustaining global energy requirements. We are transforming our petroleum industry to strengthen its capacity and market relevance for the present and future global energy priorities.
“By chance of history, I was privileged to lead the creation of the Nigeria National Petroleum Corporation on 1 July 1977. Forty-four years later, I was again privileged to sign the PIA in 2021, heralding the long-awaited reform of our petroleum sector.
“The provision of PIA 2021 has given the Nigerian petroleum Industry a new impetus with the improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent national oil company that will operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, public requirement and Fiscal Responsibility Act.
“It will, of course, conduct itself under the best international business practices in transparency, governance and commercial viability”.
President Buhari further said: “Coincidentally, on the first of July 2022, I authorised the transfer of assets from the NNPC to a successor company, the Nigerian National Petroleum Company Limited (NNPC Limited) and stirred the implementation leading to the unveiling of Africa’s largest national oil company today”.