The Nigerian National Petroleum Company (NNPC) Limited has officially become a private entity, and the African Energy Chamber (AEC) applauds this decision.
This marks the beginning of a monumental shift in active engagement, accountability, and value that is anticipated to transform Nigeria’s petroleum sector and serve as a role model for other National Oil Companies on the continent.
The change from NNPC Group to NNPC Limited, inaugurated on July 19 by Nigerian President Muhammadu Buhari, is governed by the Petroleum Industry Act 2021.
Since major decisions previously had to be approved by the Federal Executive Council, this transition will mark a significant departure for the business.
As a result, NNPC Limited will now be held to higher standards for regulatory compliance, proactive stakeholder engagement, and, perhaps most importantly, accountability.
“This marks the start of something brand-new. With regard to this implementation, Mele Kolo Kyari and his team have done an outstanding job.
Rather than rushing to phase out oil and gas, NNPC and Nigeria will now be able to more swiftly, transparently, and effectively take advantage of its hydrocarbons and natural resources to:
Following a decline in crude oil production in 2022 compared to the same six-month period in 2020 and 2021, the NNPC Limited was established.
Its creation is anticipated to place a greater emphasis on corporate governance and operational excellence, speeding up development and returning Nigeria to the top of Africa’s oil production levels.
Four committees have been created in order to oversee the planning and implementation tasks of the business and build a framework for tracking the company’s success.
The Board Establishment Committee, Board Finance, Strategy and Investment Committee, Board Sustainability Committee, and Board Audit Committee are some of these committees.
The establishment of NNPC Limited places the business on an operational par with other prosperous state-owned oil companies like Brazil’s Petrobas and Saudi Arabia’s Aramco and enables it to list on the stock exchange with the sale of its shares now open to the public.
The new, innumerable opportunities that this structuring will bring to Nigerians, Africans, and international investors and stakeholders will be showcased at this year’s African Energy Week (AEW) 2022, which will take place on 18-21 October in Cape Town, South Africa, exhibiting NNPC Limited as the company of tomorrow.
The AEC’s signature interactive exhibition and networking event, AEW, aims to bring African energy stakeholders together, foster industry growth and development, and position Africa as the top location for African-focused events for the future of the continent’s energy sector.