President Muhammadu Buhari on Friday in Abuja received the certificate of incorporation of the Nigeria National Petroleum Company Limited from the Corporate Affairs Commission (CAC).
Speaking at the event, the president noted that with the certification of the company the country expected nothing less from the Board of Directors, the Chief Executive Officer, and the Chief Finance Officer, “than the realisation of a global national oil company that this nation desires and deserves.”
Under the recently signed Petroleum Industry Act (PIA), the Nigerian National Petroleum Corporation (NNPC), was expected to transform into a limited liability company, a fact that has now been accomplished.
The president described the incorporation as “a significant milestone in our quest to create an enduring National Energy Company that can compete with its global peers and deliver value to its shareholders, the Nigerian people.”
He said his expectation was for a speedy transition through taking all steps required to transfer assets, human and material, “and without wasting time to capitalize the company as required by the Petroleum Industry Act.”
President Buhari said he was happy to note that the National Assembly had confirmed his nominations for the Board and Management of the two regulatory institutions.
He expressed the hope that the institutions would immediately take off to facilitate effective implementation of the provisions of the PIA “on accelerated gas development and optimization of oil production and support for the energy transition.”
In his remarks, Group Managing Director of NNPC, Mele Kyari, said the incorporation was “history made again, a massive transformation from what we know, to where we are going,” under the leadership of President Buhari.
He added that lots of values had been delivered in the past six years, “and we still have further accountability and values to deliver.”
Registrar/Chief Executive Officer of the Corporate Affairs Commission, Alhaji Garba Abubakar, said the registration, accomplished within 24 hours, had complied with all requirements of the Companies and Allied Matters Act (CAMA), and the PIA.
According to him, the new company is one with the largest capitalization of N200 billion in the country.
He added that the registration in the short time, “underscores strong collaborations among agencies of government.”
The News Agency of Nigeria reports that the PIA was signed into law by Buhari on Aug. 16.
Specifically, Section 53(1) of the Petroleum Industry Act 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 on the nominal shares of the company.
According to the president, the PIA creates a regulatory environment that will ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company accountable to the federation.
The Act also provides for a direct benefit framework that will enable the sustainable development of Host Communities.