President Muhammadu Buhari unveiled the new Nigerian National Petroleum Company Limited on Tuesday, July 19, 2022 in Abuja.
It’s a historic occasion that transforms the oil corporation from a fully state-run organization to a for-profit business with shares.
The unveiling took place at the presidential banquet hall in Abuja.
The NNPC Limited is expected to be managed as a private energy enterprise, unlike the former corruption-ridden government organization.
“We are transforming our petroleum industry to strengthen growth today, July 19, 2022,” President Buhari remarked at the event.”
“NNPC Limited now operates as a commercial oil company with over 200 million shareholders with integrity and excellence.”
The corporation changed into a company whose operations will be governed by the Companies and Allied Matters Act weeks prior to the ceremonial reveal (CAMA). A new Petroleum Industry Act-based legal transition went into force on July 1.
The Petroleum Industry Act has been followed in the change from NNPC Group to NNPC Limited.
The Act states that NNPC Limited would operate as a for-profit business subject to the Company and Allied Matters Act (CAMA).
Weeks after President Buhari had signed the PIA into law, the NNPC finished the process of becoming incorporated in September of last year.
Then, with an initial capitalization of N200 billion, the NNPC Limited was floated, becoming record-breaking as the corporation with the greatest share capital in the nation.
The new organization is anticipated to develop into a national petroleum company that is profit-driven and commercially focused but that is still owned by the government. It will undergo a yearly audit.
At the ceremony, Timipre Sylva, the Minister of State for Petroleum Resources, and Mele Kyari, Group Managing Director of NNPC, among other figures from the oil and gas industries, attended.