President Muhammadu Buhari Tuesday officially unveiled the new Nigerian National Petroleum Company Limited, NNPC Limited, as a fully independent, commercial and profit oriented energy company.
The unveiling, which was in line with the provisions of the Petroleum Industry Act, PIA 2021, made the new company the largest energy company in Africa.
NNPC’s last audited accounts put the company’s total assets at N15.151 trillion as at December, 2020
Speaking at the colourful event at the State House, Abuja that featured performances from Asa and Dare Art Alade, President Buhari said after becoming a commercially oriented company, the company would no longer be given public funds to finance its operations..
According to him, “NNPC Limited will operate as a commercial, independent and viable NOC at par with its peers around the world, 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.
“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 as it delivers energy to the world”.
Speaking earlier, the Minister of State Petroleum Resources, Chief Timipre Sylva explained that the new company will demonstrate a higher level of performance and accountability to continue to win the hearts of its shareholders.
According to him, “NNPC Limited will operate as a commercial, independent and viable NOC at par with its peers around the world, 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.
“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 as it delivers energy to the world”.
Speaking earlier, the Minister of State Petroleum Resources, Chief Timipre Sylva explained that the new company will demonstrate a higher level of performance and accountability to continue to win the hearts of its shareholders.
Chief Sylva observed that the “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”.
What has changed?
Speaking on what Nigerians and stakeholders should expect from NNPC Limited, its new Group Chief Executive Officer, Mallam Mele Kyari said the new entity would be smarter and much more responsive in its operations
He said: “You now have a smarter, more responsive and much more accountable company that must act within the premises of all the regulations that are in the country for private companies and must also meet the standards of best practice in terms of governance and making sure that all regulations.
“Beyond these, it will deliver value to shareholders, which will come in two forms, one, that they will pay dividends and the second is that you must deliver energy to the country. That is what our shareholders are expecting from us and this company is now in a position to deliver both because it is now a nimble company that can act quickly.
It can borrow more quickly and also return money quickly, and can also make decisions quickly with the ability to get the best people anywhere in the world. I am sure Nigerians will see a very different company in the coming days and months. I am sure that by the middle of next year the company will be IPO ready. Meaning that it will have systems, process, line of sight and profitability”, he added.
Kyari explained that as a private company, NNPC Limited is no longer expected to attend the Federation Account Allocation Committee, FAAC, meeting.
No more FAAC. We will pay our taxes, we will pay our royalties and we will deliver dividends to our shareholders”, he stated.
He also insisted the new company would have nothing to do with petrol subsidy, saying it was purely a Federal Government decision and policy.
He pointed out that in the supply of petrol the Federal Government is now a customer to NNPC Limited.
“NNPC will have no issue with this and NNPC will be happy to supply petrol because we see the state as our customer”.
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