NNPC officially transits to commercial entity, unveils new logo

The Nigerian National Petroleum Corporation (NNPC) has transited fully into a commercial entity, becoming the Nigerian National Petroleum Company Limited.

Muhammadu Buhari, Nigeria’s president, on Tuesday unveiled the new company and its new logo.

Speaking at the unveiling, Buhari said, “The provisions of PIA 2021 have given the Nigerian petroleum industry a new impetus, with 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.

“It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.”

Buhari also noted that he led the creation of the NNPC on July 1, 1977.

Meanwhile, while it is transiting, the Board of the NNPC is expected to remain as inaugurated by the President.

The official transitioning into a commercial entity implies that the oil company would be regulated in line with the provisions of the Companies and Allied Matters Act from Tuesday.

The Group Chief Finance Officer is expected to bear additional tasks of ensuring the liquidity of the group as well as the efficient allocation of capital to its businesses based on returns and business relations.

Also, the Federal Government would henceforth be halting all forms of funding for projects and sundry purposes compared to what has been obtainable in the last 45 years of the NNPC.

The PIA was signed into law by Buhari on August 16, 2021, following its passage by the National Assembly same year.

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.