NNPC Limited Incorporated

In line with the provisions of the Petroleum Industry Act (PIA), 2021, signed into law recently by the president Mahammadu Buhari, the NNPC Limited has been incorporated as a limited liability company by the Corporate Affairs Commission (CAC). The Act requires the Minister of Petroleum Resources under section 53(1) 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 on the nominal shares of the Company.

NNPC Limited Incorporated

In line with the provisions of the Petroleum Industry Act (PIA), 2021, signed into law recently by the president Mahammadu Buhari, the NNPC Limited has been incorporated as a limited liability company by the Corporate Affairs Commission (CAC). The Act requires the Minister of Petroleum Resources under section 53(1) 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 on the nominal shares of the Company.

 

Since the passing into law of the PIA, 2021, the president had in September ordered the Group Managing Director of the NNPC, Mr Mele Kolo Kyari, to take necessary steps to ensure that the incorporation of the NNPC Limited in accordance with the provisions of the PIA 2021. Consequently, the preside had also approved the appointment of the Board and Management of the NNPC Limited, whose tenure are to commence from the date of incorporation of the company with Senator Ifeanyi Ararume named as the Chairman of the Board.

 

With the incorporation of NNPC limited, all assets and liabilities of the NNPC will be transferred to NNPC Limited, government has also indicated interest to fulfill relevant sections of the Act, one of which is the intention to set in motion the process of immediate commercialization and privatization of not only the operation of, but also a possible future private ownership of shares in the NNPC Limited. NNPC limited also retains all Guarantees against government and NNPC as well as their employees and Conditions of Service.

 

So far, the government has shown readiness to implement that Act. It is expected that this swiftness will subsist. The PIA Act especially as concerned with the NNPC limited holds a lot of promises which can only come through if well implemented. The NNPC Limited is expected to compete with the best of other national oil companies globally, and take its pride of place among corporate giants of repute not only in Nigeria but also in the global oil and gas industry.