By Emeka Amaefula
NIGERIAN NATIONAL PETROLEUM COMPANY LIMITED TAKES OFF
The rebranding and repackaging of defunct Nigerian National Petroleum Corporation NNPC, into Nigerian National Petroleum Company Limited began on 21st September, 2021 and completed on Tuesday 19th of July, 2022 after its official registration with Corporate Affairs Commission under Company and Allied Matters Act regulation. With this take off it has become a viable commercial venture devoid of Government management and funding.
It was on 1st July, 1977 that the Current President of Nigerian Muhammadu Buhari supervised its creation as Petroleum Minister under the then Military Head of State General Olusegun Obasanjo. The process leading to the emergence of Nigerian National Petroleum Company Limited began in 2021 with the National Assembly passing into Law, the Petroleum Industry Act 2021 which was subsequently assented to, on 16th of August 2021 by President Buhari who doubles as Petroleum Minister.
With the official transition completed the Nigerian National Petroleum Company Limited will be fully managed as a private commercial entity in accordance with the provisions of the Companies and Allied Matters Act. Thus, having the Group Chief Finance Officer who will take charge of duties concerning the liquidity of the group with adequate tasks of resource allocation of capital to its businesses based on returns and activities.
However, section 53(1) of the Petroleum Industry Act, 2021 made it mandatory for the Minister of Petroleum Resources in consultation with the Finance Minister to cause for the incorporation of NNPC Ltd within a period of six months of the enactment of PIA. Having signed the Petroleum Industry Act into Law, the Management of NNPC took several steps in preparation for its compliance with the registration as a Companies and Allied Matters Act with the Management Board of the defunct NNPC to remain as was inaugurated by President Muhammadu Buhari recently.
Present at the epoch making event on Tuesday 19th of July 2022 was the President of Federal republic of Nigeria Muhammadu Buhari and top Government official as declared while unveiling the new Nigerian National Petroleum Company Limited “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 Treasury Single Account, Public Procurement and Fiscal Responsibility Acts. It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.” He stated.
In the last 45 years Nigerian National Petroleum Corporation NNPC has been run by Government officials with much mismanagement and financial impropriety allegedly attributed to the officials running the Corporation.