April 16, 2024

New NNPCL not a private entity,100% FG-owned, still under Ministry of Petroleum Resource – Sylva

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Oredola Adeola

Chief Timipre Sylva, Nigeria’s Minister of State for Petroleum Resources, has revealed that the new Nigerian National Petroleum Corporation Limited (NNPCL) is not a private company, insisting that it is 100 percent government-owned, but has only been allowed to operate as a commercial entity.

Sylva made this clarification on Monday while delivering a presentation on the achievements of his Ministry at the 16th edition of President Muhammadu Buhari’s administration scorecard serie, monitored by EnergyDay.

According to him, the Nigerian National Petroleum Corporation (NNPC) which has transited into a private limited company(Ltd) is a commercial organisation of the Federal Government.

He said, “NNPC is not a private company, it is 100 percent government-owned. What has happened is that the national oil company is allowed to operate commercially.

“It is an incorporated entity that is operating fully under the purview of the Ministry of Petroleum Resources,” Sylva noted.

In July 2022, the NNPC officially transitioned to a limited liability entity in line with the provisions of the Petroleum Industry Act (PIA), resulting in the change in structure, thereby opening up for regulation and accountability in line with the provisions of the Companies and Allied Matters Act (CAMA).

President Muhammadu Buhari had, during the unveiling of the new logo and identity of the national oil company, disclosed that the NNPC going forward would no longer qualify for government funding since its independence is now guaranteed.

He said that the new NNPC would compete favourably with its peers globally and be without interference from the traditional government-owned organizations’ regulatory inhibitions.

President Buhari also noted that the Corporation will not depend on government funding, and would be free from institutional regulations such as the Treasury Single Account (TSA),Public Procurement and Fiscal Responsibility Acts.

The Minister’s statement has however raised controversy around the independence of the national oil company especially as it seeks to embrace the class-A corporate policy , amidst the government’s 100 percent interference.

Mele Kyari, Group Managing Director, NNPCL, last year said that the national oil company will be ready to list its shares on the stock exchange by the middle of 2023, adding that the NNPC would be ready for Initial Public Offer(IPO) to investors.

“To get an for IPO, you need to do things different. You need to get your books correct; you need to recapitalise; you need to shape your portfolio and many more things that you have to do until you get IPO ready.

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