President Muhammadu Buhari on Tuesday in Abuja unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited), affirming that the company is mandated by law to ensure that Nigeria’s national energy security is guaranteed.
Speaking at the historic occasion at State House Conference Centre, the President said Africa’s largest National Oil Company (NOC) would also support sustainable growth across other sectors of the economy as it delivers energy to the world.
At the event, which featured a Special rendition of the Theme Song “Energy for today, Energy for tomorrow, Energy for Everyone” by an ensemble, the President expressed optimism that the NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).
“This is a landmark event for the Nigerian oil industry,” Buhari said.
“Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements.
“We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.
“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.
“It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability,” he added.
The President assured stakeholders in the industry that Africa’s largest NOC will adhere to its fundamental corporate values of Integrity, Excellence and Sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.
He added that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the day days after tomorrow.
But, stakeholders have expressed cautious optimism as the Nigerian National Petroleum Company Limited (NNPC) transits today, insisting that most of the entities under the companies are still loss making sub-subsidiaries.
Going by the provisions of the Petroleum Industry Act (PIA), NNPC had on July 1, 2022, legally transformed into a company that will be regulated under the Companies and Allied Matters Act (CAMA).
Stakeholders are insistent that the move should bring an end to arbitrariness, heavy-handed government control and wasteful practices.
An energy expert, Henry Adigun, is worried that the company is currently keeping thousands of redundant staff, especially those in the refineries. He stated that though the company is transiting, months of transition mode did not address the loss making entities in the company.
An economist, Prof. Segun Ajibola, said it is now important for the new NNPC to take courage to imbibe the culture and ethos of a private sector-led business, focusing on the primary objective of profit.
He equally advised the company to allow good corporate governance principles to influence its decisions and actions, adding that suboptimal decisions, which are often influenced by primordial considerations, must give way.
“By so doing, we are likely to see NNPC transformed to a more efficiently run company, playing its critical roles of regulating an oil and gas sector that goes to the very heart of the Nigeria’s economy,” Ajibola said.
Executive Director of Order Paper Nigeria, Oke Epia, said: “I’d like to see how the new company deals with the moribund refineries on which taxpayers monies are expended in billions of naira. I’d like to also see how it commits and abides by Environmental, Social and Corporate Governance (ESG) principles and global best practices relating to energy transition.”
Epia is, however, worried over how the company would deal with a board that is perceived to be politically heavy in composition and inclination.