Buhari Makes History With Unveiling Of New Commercialized NNPC

By Ayodele Oni

President Muhammadu Buhari on Tuesday in Abuja, made history by Unveiling the new Nigeria National Petroleum Corporation, NNPC.

Speaking at the event, Buhari went down memory lane recounting his involvement in the formation of  NNPC, many years ago as a government owned entity, which today has now transformed to a wholly private entity free of government control,  saying God has used him to consistently play an important role in shaping the destiny of the country’s oil industry in the last 45 years.

A statement by the Special Adviser, Media and Publicity  to the President, Femi Adesina, stated that Buhari spoke  at the State House Conference Centre, Abuja.

The President said the new company, Africa’s largest National Oil Company (NOC) would support sustainable growth across other sectors of the economy as it delivers energy to the world.

“By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on the 1st July 1977.

“Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector,” Buhari said.

President Buhari was  Minister of petroleum during the military regime when NNPC was formed.

He expressed optimism that the NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).

According”This is a landmark event for the Nigerian oil industry. Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements

‘‘We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.

“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.

‘‘Coincidentally, I, on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest National Oil Company today.”

The President, assured stakeholders in the industry that Africa’s largest NOC will adhere to its fundamental corporate values of Integrity, excellence and sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.

He added that the company would focus on becoming a dynamic global energy company of choice to deliver energy now and future.

He thanked the  leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.

Minister of State for Petroleum Resources, Timipre Sylva, said with the signing of the PIA,  international and local oil companies are assured of adequate protection of their investments, adding that the nation’s petroleum industry is no longer rudderless.

‘‘From the onset of this administration, Mr. President never concealed his desire to create a more conducive environment for growth of the oil and gas sector, and addressing legitimate grievances of communities most impacted by extractive industries.

‘‘While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50 billion worth of investments. In fact, between 2015 and 2019, KPMG states that “only 4 percent of the $70 billion investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.

‘‘We are setting all these woes behind us, and a clear path for the survival and growth of our petroleum industry is now before us,’’ he said.

Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships.

The Group Chief Executive Officer of NNPC Limited, Mele Kyari, announced that the company has adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months.

He assured stakeholders and the global energy community that the new company was endowed with the ‘‘best human resources one can find anywhere in the industry.’’