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NNPC Becomes Commercial Entity In The Midst Of Gasoline Crisis

by Echezona obinna
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The Nigerian National Petroleum Corporation was transformed into a commercial organization on Tuesday, becoming the Nigerian National Petroleum Company Limited.

The oil company will be regulated in accordance with the provisions of the Companies and Allied Matters Act as of Tuesday, with the Group Chief Finance Officer expected to bear additional tasks of ensuring the group’s liquidity as well as the efficient allocation of capital to its businesses based on returns and business relations.

Also, the Federal Government would henceforth be halting all forms of funding for projects and sundry purposes compared to what has been obtainable in the last 45 years of the NNPC.

Present at the unveiling of the NNPC Limited in Abuja, the Federal Capital Territory, is the President, Major General Muhammadu Buhari (retd.), and other notable personalities.

This privatisation is coming amidst the series of fuel crises – scarcity and skyrocketed pump price of petroleum products rocking the country.

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Scarcity of the Premium Motor Spirit (petrol) had recently the country in months, with the situation getting worse in some parts of Abuja. Lagos and some northern states like Kano are not also spared.

ANAEDOONLINE.NG gathered that the Corporate Affairs Commission had on September 21, 2021, completed the incorporation of the NNPC Limited in accordance with the Petroleum Industry Act.
The PIA was signed into law by Buhari on August 16, 2021, following its passage by the National Assembly same year.

Oil/Gas Industry: PIA Implementation Gives Relief – Kyari Explains

Section 53(1) of the PIA, 2021, requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance.

Since when the PIA was signed into law, the management of the NNPC has taken proactive steps to prepare it for take-off as a CAMA company.

Meanwhile, while it is transiting, the Board of the NNPC is expected to remain as inaugurated by the President.

Speaking at the unveiling, Buhari said, “The provisions of PIA 2021 have given the Nigerian petroleum industry a new impetus, with improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent national oil company that will operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.

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“It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.”

Buhari also noted that he led the creation of the NNPC on July 1, 1977.

 

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