The Nigerian National Petroleum Corporation has on Tuesday, transited fully into a commercial entity, becoming the Nigerian National Petroleum Company Limited.
The official transitioning into a private entity means that the oil company would be regulated in line with the provisions of the Companies and Allied Matters Act from Tuesday, with the Group Chief Finance Officer expected to bear additional tasks of ensuring the liquidity of the group as well as the efficient allocation of capital to its businesses based on returns and business relations.
Also, the Federal Government would henceforth be halting all forms of funding for projects and sundry purposes compared to what has been obtainable in the last 45 years of the NNPC.
Present at the unveiling of the NNPC Limited in Abuja, the Federal Capital Territory, is the President, Major General Muhammadu Buhari (retd.), and other notable personalities.
This privatisation is coming amidst the series of fuel crises – scarcity and skyrocketed pump price of petroleum products rocking the country.
Scarcity of the Premium Motor Spirit (petrol) had recently the country in months, with the situation getting worse in some parts of Abuja. Lagos and some northern states like Kano are not also spared.
The PIA was signed into law by Buhari on August 16, 2021, following its passage by the National Assembly same year.
Section 53(1) of the PIA, 2021, requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance.
Since when the PIA was signed into law, the management of the NNPC has taken proactive steps to prepare it for take-off as a CAMA company.
Meanwhile, while it is transiting, the Board of the NNPC is expected to remain as inaugurated by the President.