from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – THE inauguration of the Nigerian National Petroleum Company (NNPC) Limited and its official transition to a private entity is anticipated to reshape the petroleum industry in the continent’s biggest producer of the commodity.
The transition from a Group to a Limited firm is also set to ensuring corporate governance and long-term sustainable value.
The African Energy Chamber (AEC) supports the historic move after the inauguration by President Muhammadu Buhari on Tuesday.
This transition is aimed at creating a significant departure from the company’s previous operations, whereby major decisions had to be made based on the Federal Executive Council approval.
The new arrangement will exalt NNPC Limited with higher expectations around regulatory compliance, active engagement with stakeholders and accountability.
“This is the beginning of something new,” said NJ Ayuk, Executive Chairman of the AEC.
“The strategic importance of this transition will allow Nigeria’s petroleum industry to uphold the highest levels of professionalism and innovation while allowing the company to operate in strategic engagements globally,” Ayuk said.
Ayuk said rather than hastily eliminating oil and gas, NNPC and Nigeria must take advantage of its hydrocarbons and natural resources to bring more value and wealth.
The creation of the NNPC Limited follows a decrease in crude oil production in 2022 compared to the same six-month period in 2020 and 2021.
The launch of NNPC Limited allows the company to become listed on the stock exchange.
This positions the company on the same operational level as other successful state-owned petroleum corporations, such as Brazil’s Petrobas and Saudi Arabia’s Aramco.
Russia boasts biggest, but most profitable state owned oil companies comprising Rosneft followed, Lukoil, Surgutneftegaz, Gazprom Neft and Tatneft respectively.
– CAJ News