President Muhammadu Buhari yesterday in Abuja unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited), affirming that the company is mandated by law to ensure that Nigeria’s national energy security is guaranteed.
Speaking at the historic occasion at the State House Conference Centre, the president said Africa’s largest national oil company (NOC) would also support sustainable growth across other sectors of the economy as it delivers energy to the world.
At the event, which featured a special rendition of the theme song ”Energy for Today, Energy for Tomorrow, Energy for Everyone” by an ensemble, the president in a statement by presidential spokesman, Femi Adesina, recounted how God had used him to consistently play an important role in shaping the destiny of the country’s NOC in the last 45 years.
He expressed optimism that the NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community, operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).
Buhari said, ‘‘This is a landmark event for the Nigerian oil industry. Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue 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 Nigerian National Petroleum Corporation on the 1st July, 1977. Forty-four years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector.”
According to him, the provisions of PIA 2021 have 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 TSA, Public Procurement and Fiscal Responsibility Acts. It will also conduct itself under the best international business practice in transparency, governance and commercial viability.
Buhari went on: ‘‘Coincidentally, I, on the 1st of July 2022, authorised transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest national oil company today.’’
The president, therefore, assured stakeholders in the industry that Africa’s largest NOC will adhere to its fundamental corporate values of integrity, excellence and sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.
He added that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the day days after tomorrow.
He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.
On his part, minister of State for Petroleum Resources, Timipre Sylva, said with the signing of the PIA, which assures international and local oil companies of adequate protection for their investments, the nation’s petroleum industry is no longer rudderless.
“One of the magnanimous provisions of the PIA is the transition of the NNPC into a fully commercial entity, which will be a limited liability company incorporated under the Companies and Allied Matters Act (CAMA), to be known as the Nigerian National Petroleum Company Ltd., ” he said.
Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships.
He thanked the president for his unparalleled leadership, steadfastness, and unalloyed support towards ensuring that the country’s oil and gas industry is on a sound footing.
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 1500 outlets within the next six months.
He assured stakeholders and the global energy community that the new company was endowed with the ‘‘best human resources one can find anywhere in the industry.’’
‘‘NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world,’’ he said.
Marketers Hail New NNPC, Task Company On Competitiveness
Meanwhile, Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have hailed the unveiling of the new NNPC Ltd.
The marketers also tasked the NNPC Ltd to be competitive and efficient in its operations going forward in order to achieve the aim of the transition and for the benefit of the nation.
Chairman of MOMAN, Olumide Adeosun, and president of IPMAN, Chinedu Okoronkwo commended Buhari, Timipre Sylva, the minister of State, Petroleum Resources and Malam Mele Kyari, group managing director, NNPC Ltd., for their vision to transform the company.
Adeosun said: “The direction that they have taken is certainly one that has proven to be workable for other national oil companies and definitely a step in the right direction.
“Nigeria will benefit as a country consequently because it means that efficiency will now be one of their drivers rather than politics.
“It means that they will have a preference and deference to a free market rather than monopoly.I wish them a great success because they are now competitors in the downstream sector.”
Similarly, Okoronkwo described the move as a good omen because it would open up both the downstream and upstream sectors of the industry.
“The company is now going to be making profit which ultimately will be a game changer for our economic situation.
“I believe that they will be here to do business like any other oil company and compete because competition will always bring out the best of any situation,” Okoronkwo said.
He said the transition of the NNPC and the coming on stream of the Dangote Petroleum Refinery would play significant roles in shaping Nigeria’s energy future.
Okoronkwo reiterated that IPMAN would continue to support policies initiated by the government to improve the oil and gas sector of the economy.
