On Tuesday, President Muhammadu Buhari launched the new Nigerian National Petroleum Company Limited, a historic event that transforms the oil company from a totally state-run organization to a commercial oil company with shares.
In contrast to the previous, corrupt government organization, the NNPC Limited is anticipated to be run as a commercial energy company.
The presidential banquet hall in Abuja served as the location for the unveiling.
“We are transforming our petroleum industry to strengthen the growth today July, 19 2022,” Mr Buhari said at the event.
“NNPC Limited now will operate as a commercial oil company with over 200 million shareholders with integrity and excellence0.”
The official unveiling came weeks after the corporation transitioned into a company whose operations will be regulated by the Companies and Allied Matters Act (CAMA). The legal transition, based on the new Petroleum Industry Act, took effect July 1.
The NNPC completed its incorporation in September last year weeks after the the PIA was signed into law by President Buhari.
The NNPC Limited was then floated with an initial capital of N200 billion making history as the company with the highest share capital in the country.
The new entity is expected to become a commercially oriented and profit-driven national petroleum company independent of government, although government bodies remain its shareholders. It will be audited annually.
More details to come….
