Muhammadu Buhari on Tuesday unveiled the new Nigerian National Petroleum Company Limited, (NNPC 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 NNPC Limited is expected to be managed as a private energy enterprise, unlike the former corruption-ridden government organisation.
The event which took place in Abuja on Tuesday had some top government officials in attendance.
The unveiling has the Senate President, Ahmad Lawan; the Minister of State for Petroleum Resources, Timipre Sylva; and the Group Managing Director of NNPC, Mele Kyari; among other top stakeholders in the oil and gas sector.
The transitioning from NNPC Group to NNPC Limited is in accordance with the Petroleum Industry Act.
According to the Act, NNPC Limited will run a commercial and profit-focused organisation under the Company and Allied Matters Act (CAMA).
“We are transforming our petroleum industry to strengthen the growth today July, 19 2022,” Mr Buhari said at the event.
“NNPC Limited now will operate as a commercial oil company with over 200 million shareholders with integrity and excellence0.”
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, took effect July 1.
NNPC completed its incorporation in September last year weeks after the the PIA was signed into law by President 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 be audited annually.