Following the unveiling of the new Nigerian National Petroleum Company (NNPC) Ltd, the Nigeria Extractive Industries Transparency Initiative (NEITI) has cheered the transition of the company to an independent limited liability Company.
108scoop.com reports that the new NNPC was officially unveiled by President Muhammadu Buhari in Abuja on Tuesday as a commercial venture.
The transition is in line with the provisions of the Petroleum Industry Act (PIA), 2021, and has transformed the NNPC from a corporation into a limited liability company, incorporated under the Companies and Allied Matters Act (CAMA).
NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji who witnessed the unveiling expressed hope that with the transition to a commercial entity, it was in a better position to compete favourably with leading international oil companies globally.
Orji, in a statement by Mrs Obiageli Onuora, Head, Communications and Advocacy, NEITI said that the transition was in line with the recommendations of NEITI industry reports for the oil and gas sector.
The report covered 1999 to 2019 which equally led to the emergence of the Petroleum Industry Act 2021 (PIA).
He said in the NEITI oil and gas reports that covered 1999 – 2019, NEITI had consistently recommended that Nigeria’s national oil company should be privatised to make it competitive like other national oil companies across the globe.
“Nigeria needs a business oriented NNPC to deliver the country’s energy needs, energy transition, energy security, diversification of its economy and the building of a sustainable energy future for the country, ” Orji added.
He further explained that the immediate challenges that the new NNPC needed to tackle was to free Nigeria from fuel importation.
“The immediate questions that an average Nigerian is asking are what is likely to change from the NNPC we know and the new NNPC Limited? What will happen to jobs, institutions, profit making, transparency and accountability,” he said.
He commended the new team in NNPC and the present administration of the political will to get this reform done.
Orji expressed confidence that the NNPC Ltd. Will leave up to its obligations as a supporting company of the global EITI.
He reiterated its call on the Federal Government to replicate the same feat for the solid minerals sector.
According to the transparency boss, “Nigeria’s solid minerals sector also needs a holding company similar to NNPC Ltd. NEITI is advocating for the NLNG model which has proven to be sustainable, profitable and accountable.
Despite the challenges faced by the oil and gas sector during the Covid-19 pandemic, NLNG in Nigeria posted profits and even dividends. This is remarkable,” Orji said.
With this unveiling, some of the provisions in the PIA have been met, while NNPC ranks among national oil and gas companies to be publicly listed in Africa with an initial share capital of N200Billion and net assets of more than $59 billion.
NEITI is confident that the PIA Steering Committee (PIASTEERCO), to which it is a member, will ensure that the provisions of the PIA are implemented to the letter and Nigeria’s oil and gas industry is positioned for a profitable and sustainable future.
Similarly, the Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) applauded the new initiative.
The marketers tasked the NNPC Ltd to be competitive and efficient in its operations going forward in order to achieve the aim of the transition and for the benefit of the nation.
Mr Olumide Adeosun, Chairman, MOMAN and Mr Chinedu Okoronkwo, President, IPMAN, stated this on Tuesday in Lagos.
Adeosun commended Buhari, Chief Timipre Sylva, the Minister of State, Petroleum Resources and Malam Mele Kyari, Group Managing Director, NNPC Ltd., for their vision to transform the company.
He said: “The direction that they have taken is certainly one that has proven to be workable for other national oil companies and definitely a step in the right direction.
“Nigeria will benefit as a country, consequently because it means that the efficiency will now be one of their drivers rather than politics.
“It means that they will have a preference and deference to a free market rather than monopoly.
“I wish them a great success because they we are now competitors in the downstream sector.”
Also, Okoronkwo described the move as a good omen because it would open up both the downstream and upstream sectors of the industry.
“The company is now going to be making a profit, which ultimately will be a game changer for our economic situation.
“I believe that they will be here doing business like any other oil company and compete because competition will always bring out the best of any situation,” Okoronkwo said.
He said the transition of the NNPC and the coming on stream of the Dangote Petroleum Refinery would play significant roles in shaping Nigeria’s energy future.
Okoronkwo reiterated that IPMAN would continue to support policies initiated by the government to improve the oil and gas sector of the economy.
