President Muhammadu Buhari has said that the provisions of the Petroleum Industry Act (PIA) 2021 would enable the Nigerian National Petroleum Company (NNPC) Limited to operate without relying on government funding and free from institutional regulations such as Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.
Buhari pointed out that the provisions of PIA have given the Nigerian petroleum industry a new impetus, with an improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent national oil company.
This was made known by President Buhari while speaking at the official unveiling ceremony of the new NNPC Limited at the State House Conference Centre, Presidential Villa in Abuja on Tuesday.
Buhari expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community.
What President Buhari is saying
The statement from Buhari partly reads, “The provisions of PIA (Petroleum Industry Act) 2021, have given the Nigerian petroleum industry a new impetus, with an 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.
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“It will, of course, conduct itself under the best international business practice in transparency, governance, and commercial viability.
‘By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on July 1, 1977. Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector.
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‘‘Coincidentally, I, on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest National Oil Company today.
‘‘I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great.’’
The president, therefore, assured stakeholders in the industry that Africa’s largest National Oil Company would 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 further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the days after tomorrow.
He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.
What you should know
- Recall that President Muhammadu Buhari, on August 16, 2021, signed the PIA into law, after it was passed by the two chambers of the National Assembly in July and almost 20 years after it was first introduced, representing a significant milestone for Nigeria’s oil and gas sector.
- Buhari in October 2021 officially received the Certificate of Incorporation by the Corporate Affairs Commission (CAC) for the National Petroleum Company Limited.
- CAC had earlier revealed that the NNPC Limited will have one of the largest registered share capital in Nigeria with a valuation of N200 billion