NNPC Transits To Commercial Entity, Changes Name To NNPC Limited
President Muhammadu Buhari on Tuesday unveiled the new Nigerian National Petroleum Company Limited, a landmark event that officially changes the oil firm from a wholly state-run entity to a commercial oil company, limited by shares.
The unveiling of the NNPC Limited which is expected to be managed as a private energy enterprise took place at the presidential banquet hall in Abuja on Tuesday.
The event had in attendance the Minister of State for Petroleum Resources, Timipre Sylva, Group Managing Director of NNPC, Mele Kyari, Senate President Ahmed Lawan, among a host of others.
“We are transforming our petroleum industry to strengthen the growth.
“NNPC Limited now will operate as a commercial oil company with over 200 million shareholders with integrity and excellence,” the president said.
The official unveiling came weeks after the corporation transitioned into a company whose operations will be regulated by the Companies and Allied Matters Act (CAMA). The legal transition, based on the new Petroleum Industry Act (PIA), took effect July 1.
The NNPC completed its incorporation in September last year weeks after the PIA was signed into law by President Muhammadu Buhari.
The NNPC Limited was then floated with an initial capital of N200 billion making history as the company with the highest share capital in the country.
The new entity is expected to become a commercially oriented and profit-driven national petroleum company independent of government, although government bodies remain its shareholders. It will, however, be audited annually.