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Nigeria launches NNPC as commercial entity
AFRICA NIGERIAN President Muhammadu Buhari led (PIA) into law, and floated with an initial capital
a ceremony marking the launch of the country’s of NGN200bn ($481.46mn).
new state oil and gas concern, which will be It did so in line with specific provisions of the
known as Nigerian National Petroleum Co. Ltd PIA, which mandated NNPC’s transformation
(NNPC Ltd), in Abuja on July 19. from a state-controlled institution with regula-
The new entity will succeed Nigerian National tory authority into a commercial firm. The incor-
Petroleum Corp. (NNPC), which functioned poration was then followed by the establishment
effectively as an extension of the Department of NNPC Ltd as a new business entity on July 1,
of Petroleum Resources (DPR), itself a division 2022.
of the federal Ministry of Petroleum Resources. Mele Kyari, NNPC Ltd’s group CEO, said he
NNPC Ltd will take the form of a corporation expected the establishment of the new company
and will operate with a significant degree of inde- to help ensure Nigeria’s domestic energy secu-
pendence from the government. rity – that is, its ability to cover local demand for
It will not have any direct access to budget petroleum products. The company will achieve
funds or control over the allotment of oil and this goal partly by carrying out a plan to expand
gas revenues, and it will not be involved in the the number of filling stations in its retail division
handling of the subsidy that the Nigerian gov- from 547 to more than 1,500 over the next six
ernment pays for domestic gasoline prices. months, he said.
Buhari acknowledged the differences Kyari, who previously served as NNPC’s
between NNPC Ltd and its predecessor, noting, group managing director, did not say how much
for example, that the new company would be the new company expected to spend on this initi-
regulated by the provisions of Nigeria’s Compa- ative. But he did stress that NNPC Ltd was eager
nies and Allied Matters Act (CAMA). “NNPC to focus on reducing energy poverty and green-
Ltd now will operate as a commercial oil com- house gas (GHG) emissions within Nigeria while
pany with over 200mn shareholders with integ- also expanding domestic gas utilisation.
rity and excellence,” he declared. “NNPC Ltd is positioned to lead Africa’s grad-
According to Nigerian press reports, the ual transition to new energy by deepening natu-
ceremony served to celebrate a process that has ral gas production to create low-carbon activities
already been completed. NNPC was actually and positively change the story of energy poverty
incorporated in September 2021, a few weeks at home and around the world,” he was quoted as
after Buhari signed the Petroleum Industry Act saying by Guardian.ng.
P10 www. NEWSBASE .com Week 29 21•July•2022
