The Nigerian National Petroleum Corporation (NNPC), Nigeria’s state-owned oil corporation, has transitioned to a limited liability company, regulated in line with provisions of the Petroleum Industry Act 2021, and will run its new profit-focused organization under the regulatory framework, the Companies and Allied Matters Act.
Inaugurated by Nigeria’s President, H.E. Muhammadu Buhari on 19 July, the official transition to a private entity will see the limited liability company operate without recourse to direct funding from Nigeria’s federal government, thus offering a shift in active engagement, accountability and value that is expected to reshape the West African country’s petroleum industry.
“This is a landmark event for the Nigerian oil industry. Our country places a high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements. We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.”
Additionally, the company’s Group Managing Director, Mele Kyari, will now become the Group Chief Executive Officer (CEO), whose responsibilities will be to ensure the liquidity of the group while efficiently allocating capital to businesses based on return rates and project priorities.
“NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world,” stated NNPC Limited Group CEO, Mele Kyari.
Four committees have been established to provide oversight into the entity’s functions of planning and implementation, defining a framework for monitoring the company’s performance. These committees include the Board Establishment Committee; the Board Finance, Strategy, and Investment Committee; the Board Sustainability Committee; and the Board Audit Committee.
The launch of NNPC Limited will allow the company to become listed on the stock exchange, with sales of its shares expected to become available to the public.