Amid fuel crisis, NNPC transits to commercial entity
The Nigerian National Petroleum Corporation has on Tuesday, transited fully into a commercial entity, becoming the NNPC Limited.
With the official transitioning into a private entity that would be regulated in line with the provisions of the Companies and Allied Matters Act from Tuesday, the Group Chief Finance Officer would be expected to shoulder additional responsibilities of not only ensuring the liquidity of the group but also, the efficient allocation of capital to businesses based on the rate of return and business/project priorities.
Also, the Federal Government would henceforth be halting all forms of funding for projects and sundry purposes in contrast to what has been obtainable in the last 45 years of the national oil company’s existence.
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.
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.
The PUNCH 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.
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.