By Akpobor Jirue, Abuja
President Muhammadu Buhari on Sunday directed the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kolo Kyari, to commence immediate transition of the national oil company into a limited liability as approved by the newly enacted Petroleum Industry Act (PIA).
The President in a press statement signed by his Special Adviser on Media and Publicity, Femi Adesina, directed Mr. Kyari to take necessary steps to incorporate NNPC Limited in line with the provisions of the PIA 2021.
He also approved the appointment of Senator Ifeanyi Ararume, as chairman of the Board of Directors of the proposed NNPC Limited while Mele Kolo Kyari and Umar I. Ajiya are Chief Executive Officer, and Chief Financial Officer, respectively.
Senator Ararume is therefore expected to replace Chief Timipre Marlin Sylva, the Minister of State for Petroleum Resources, who was until the latest development chaired the Board of the NNPC.
Part of the statement obtained by our reporter in Abuja said the move by Buhari is in “consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company”.
“The Group Managing Director of the NNPC, Mr Mele Kolo Kyari, has, therefore, been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.
“Also, by the power vested in him under Section 59(2) of the PIA 2021, President Buhari has approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the Company.
“Chairman of the Board is Senator Ifeanyi Ararume, while Mele Kolo Kyari and Umar I. Ajiya are Chief Executive Officer, and Chief Financial Officer, respectively.
“Other Board Members are; Dr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Senator Margaret Chuba Okadigbo (South East), Barrister Constance Harry Marshal (South South), and Chief Pius Akinyelure (South West),” the statement further read.
According to Upcounsel, when a business decides to form a corporate structure or company, the process is called incorporation. Corporations, by definition, are completely separate entities from their owners. This separation is called the corporate veil, and it offers a level of liability protection to the owners and shareholders in a corporation.