by Mitchelle Uzorka
After four decades of its existence, President Muhammadu Buhari, yesterday, unveiled a new Nigerian National Petroleum Company (NNPC) Limited in Abuja.
Going by provisions of the Petroleum Industry Act (PIA), NNPC had on July 1, 2022, legally transformed into a company that would be regulated under the Companies and Allied Matters Act, CAMA.
Unveiling the new NNPC, Buhari emphasized on the role of the company as mandated by law to ensure that Nigeria’s national energy security is guaranteed.
He expressed optimism that NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and be free from institutional regulations such as the Treasury Single Account (TSA).
Present at the unveiling was the Minister of State for Petroleum Resources, Timipre Sylva, who said the signing of the PIA provided international and local oil firms adequate protection for their investments, adding that the nation’s petroleum industry is no longer rudderless.
The Group Chief Executive Officer of NNPC Limited, Mele Kyari, announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1,500 outlets within the next six months.
Here are some facts you need to know about the new NNPC Ltd:
1- Section 53(1) of the PIA 2021 requires the Minister of Petroleum Resources to cause the incorporation of the NNPC Limited within six months of the enactment of the Act in consultation with the Minister of Finance on the nominal shares of the company.
2- What this means is that with the transition, the government will no longer have control over the staffing of the NNPC.
3- Section 53 (5) of the Act stipulates that shares of the company held by the government are not transferable or mortgaged unless approved by the government and the National Economic Council.
4- With the NNPC Limited coming on board, the new company will not concern itself with issues of petrol price determination, and subsidy.
5- The new NNPC will no longer remit into the Federal Account Allocation Committee. This invariably means no more money to be shared by state governors.