By Adeleye Kunle
President Muhammadu Buhari unveiled the new Nigerian National Petroleum Company Limited, NNPC Limited, as a fully independent, commercial, and profit-oriented energy company on Tuesday in Abuja.
The unveiling, in accordance with the provisions of the Petroleum Industry Act, PIA 2021, made the new company Africa’s largest energy company.
According to NNPC’s most recent audited financial statements, the company’s total assets as of December 2020 were N15.151 trillion.
President Buhari said at the colorful event at the State House in Abuja, which featured performances by Asa and Dare Art Alade, that once the company became commercially oriented, it would no longer be given public funds to finance its operations.
“NNPC Limited will operate as a commercial, independent, and viable NOC on par with its peers worldwide, to sustainably deliver value to its over 200 million shareholders and the global energy community, while adhering to its fundamental corporate values of Integrity, Excellence, and Sustainability,” he says.
“As it delivers energy to the world, NNPC Limited is mandated by law to ensure Nigeria’s National Energy Security is guaranteed to support sustainable growth across other sectors of the economy.”
Earlier, Chief Timipre Sylva, Minister of State Petroleum Resources, stated that the new company will demonstrate a higher level of performance and accountability in order to continue to win the hearts of its shareholders.
“The unveiling of NNPC Limited today is a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships,” Chief Sylva said.
What has altered?
In terms of what Nigerians and stakeholders can expect from NNPC Limited, Mallam Mele Kyari, the company’s new Group Chief Executive Officer, stated that the new entity will be smarter and more responsive in its operations.
“You now have a smarter, more responsive, and much more accountable company that must act within the confines of all the regulations that are in place in the country for private companies and must also meet the standards of best practice in terms of governance and ensuring that all regulations are met,” he said.
“In addition to these, it will provide value to shareholders in two ways: first, by paying dividends, and second, by delivering energy to the country.” That is what our shareholders expect from us, and this company is now in a position to deliver on both because it is now a nimble, quick-acting company.
“It can borrow and return money more quickly, and it can make decisions quickly with the ability to hire the best people anywhere in the world.” Nigerians will undoubtedly see a very different company in the coming days and months. I am confident that the company will be ready for an IPO by the middle of next year. That is, it will have systems, processes, a clear line of sight, and profitability,” he added.
As a private company, NNPC Limited is no longer expected to attend the Federation Account Allocation Committee, FAAC, meeting, according to Kyari.
“There will be no FAAC.” “We will pay our taxes, royalties, and distribute dividends to our shareholders,” he stated.
He also insisted that the new company would have nothing to do with gasoline subsidies, claiming that this was a decision and policy made by the Federal Government.
He stated that the Federal Government is now a customer of NNPC Limited in terms of petrol supply.
“NNPC will have no objections to this, and NNPC will be happy to supply gasoline because we see the state as our customer.”
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