The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has lauded the federal government for the unveiling of the Nigerian National Petroleum Company Limited (NNPCL) as a new entity to replace the extant Nigerian National Petroleum Corporation (NNPC).
Recall that President Muhammadu Buhari officially unveiled NNPCL as a successor to the NNPC in Abuja on Tuesday, July 19, 2022, in reference to the provisions of the Petroleum Industry Act(PIA) 2021.
The development has freed the company from institutional regulations and given it the power to conduct its affairs as a private company.
ICSAN, in a statement by its president, Taiwo Gbenga Owokalade, and made available to journalists, described the development as a positive one for the Nigerian economy.
The ICSAN boss further stated that the measure would ensure greater efficiency and boost transparency in the oil and gas sector.
Owokalade said: “ICSAN sees the transition of NNPC from a public corporation into a limited liability company as a positive development for the Nigeria economy. The new entity, NNPCL is now a commercially-oriented national petroleum company with all the attributes of a thriving private enterprise.
“As a leading professional Institute on corporate governance and public administration, we applaud the vision behind this structural substitution of the NNPC with NNPCL, which is to ensure greater efficiency and transparency in the oil exploration and distribution system.
“We believe the new entity is more structurally poised and organically well-adjusted to provide a pivotal role for the sector.”
This transition to a private company, he stressed, will enable the company to be more value-driven and its operations more inclined to conform to international best practices.
“This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation’s economy in general,” he said.
Owokalade advised the management of NNPCL to ensure that the principles of corporate governance are well-entrenched in the new entity for the firm to fully reap the benefits of its emergence as a private company.
He said: “we will however further advise that there must be an adequate framework of risk management and control system within the new entity, NNPCL.
“Furthermore, proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised.”