President Muhammadu Buhari has unveiled the Nigerian National Petroleum Company Limited (NNPC) Limited.
The landmark event, which took place in Abuja on Tuesday, officially transformed the oil firm from a state-run oil corporation to a commercial venture.
On July 1, 2022, the NNPC Limited legally transformed into a company whose operations and activities are regulated under the Companies and Allied Matters Act (CAMA), following the provision of the Petroleum Industry Act (PIA) 2021.
Speaking at the event, Buhari said the transformation would strengthen the capacity and market relevance of Nigeria’s oil industry.
“This is a landmark event for the Nigerian oil industry. 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,” he said.
“By chance of history, I was privileged to lead the creation of the Nigeria National Petroleum Corporation on July 1, 1977. 44 years later, I was again privileged to sign the Petroleum Industry ACT (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 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 (TSA), public requirement and fiscal responsibility act (FRA).
“It will of course conduct itself under the best international business practices in transparency, governance and commercial viability.
“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.”
Buhari added that NNPC Limited would now operate as a commercial oil company with over 200 million shareholders with integrity and excellence.