Announcing that the business is required by law to assure Nigeria’s national energy security, President Muhammadu Buhari unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited) in Abuja.
Speaking at the historic event at State House Conference Centre, the President declared that Africa’s largest National Oil Company (NOC), which supplies energy to the entire world, would also encourage sustainable growth in other economic sectors.
The President spoke at the event, which included a special performance of the theme song “Energy for today, Energy for tomorrow, Energy for Everyone” by an ensemble.
He also recalled how God had used him over the course of the previous 45 years to consistently play a significant role in determining the course of the nation’s NOC.
He expressed confidence that the NNPC Limited will operate independently of institutional controls like the Treasury Single Account and sustainably provide value to its more than 200 million shareholders and the global energy community (TSA).
“This is a significant development for Nigeria’s oil sector.”
“Our nation places a high value on fostering an environment that encourages investment and growth to strengthen our economy and keep playing a crucial part in meeting the world’s energy needs.
“We are changing our petroleum business to increase its market relevance and capacity for the current and future energy priorities around the world.
I had the honour of leading the establishment of the Nigerian National Petroleum Corporation on July 1, 1977, by chance of history.
After forty-four (44) years, I once more had the honour of approving the Petroleum Industry Act (PIA), which ushered in our country’s long-overdue reform of the petroleum industry.
With an improved fiscal framework, transparent governance, increased regulation, and the establishment of a commercially driven and independent National Oil Company, which will operate independently from institutional regulations like the Treasury Single Account, Public Procurement, and Fiscal Responsibility Acts, PIA 2021’s provisions have given the Nigerian petroleum industry a new impetus.
Of course, it will conduct itself according to the finest international corporate practises in terms of governance, transparency, and commercial viability.
Coincidentally, I approved the transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, on July 1, 2022, and I oversaw the implementation that resulted in the today’s unveiling of Africa’s largest national oil company.
“Therefore, I thank Almighty God for choosing me to continually play a crucial part in determining the course of our National Oil Company from the good to the great,” the statement reads.
The President gave the industry’s stakeholders the reassurance they needed that Africa’s largest NOC would uphold its core values of Integrity, Excellence, and Sustainability while operating as a competitive, autonomous, and viable NOC on par with its counterparts globally.
He further stated that the company will concentrate on developing into a dynamic, top-choice global energy provider that could provide energy for today, tomorrow, and the day after tomorrow.
He commended the National Assembly’s leadership and members for their remarkable bravery and patriotism in approving PIA, which resulted in the establishment of NNPCL.
According to Timipre Sylva, Minister of State for Petroleum Resources, the country’s petroleum industry is no longer aimless with the signing of the PIA, which guarantees foreign and domestic oil businesses of proper security for their investments.
From the beginning of this administration, Mr. President has never hidden his intention to improve the environment for the development of the oil and gas industry and to address the justifiable complaints of the communities who are most negatively touched by extractive industries.
Nigeria’s oil and gas sector lost investments totaling over $50 billion while the nation awaited the PIA.
Even though Nigeria is the continent’s top producer and has the most reserves, only 4% of the $70 billion in investment in the oil and gas sector in Africa between 2015 and 2019 went there, according to KPMG.
We are putting all of these problems behind us, and our petroleum industry now has a clear route to survival and expansion, he said.
The introduction of NNPC Limited, according to Sylva, marked a new beginning in the effort to expand and develop the Nigerian oil and gas industry and provide new opportunities for collaboration.
He expressed gratitude to the President for his unmatched vision, perseverance, and unwavering support in putting the nation’s oil and gas industry on a solid foundation.
Mele Kyari, the Group Chief Executive Officer of NNPC Limited, declared that the company had adopted a strategic initiative to fulfil the mandate of energy security for the nation by implementing a thorough expansion plan to increase its fuel retail presence from 547 to over 1500 outlets within the following six months.
He gave the energy community and stakeholders the reassurance that the new business had the “greatest human resources one can find anyplace in the industry.”
According to him, “NNPC Limited is positioned to lead Africa’s slow shift to new energy by deepening natural gas production to develop low carbon activities and positively change the tale of energy poverty at home and around the world.”