NNPC Changes Name To NNPC Limited As It Becomes A Commercial Entity 

At the presidential banquet hall in Abuja on Tuesday, the NNPC Limited, which is anticipated to be run as a private energy enterprise, was unveiled.

By Omotayo Olutekunbi

Tuesday’s unveiling of the new Nigerian National Petroleum Company Limited by President Muhammadu Buhari marked the official transition of the oil company from a totally state-run organization to a for-profit business limited by shares.

At the presidential banquet hall in Abuja on Tuesday, the NNPC Limited, which is anticipated to be run as a private energy enterprise, was unveiled.

Timipre Sylva, the minister of state for petroleum resources, Mele Kyari, the group managing director of the NNPC, and Ahmed Lawan, the president of the Senate were among the several others who attended the occasion.

“We are transforming our petroleum industry to strengthen the growth.

“NNPC Limited now will operate as a commercial oil company with over 200 million shareholders with integrity and excellence,” the president said.

After changing from a corporation into a business whose activities would be governed by the Companies and Allied Matters Act, the corporation was officially unveiled a few weeks later (CAMA). The new Petroleum Industry Act (PIA), which serves as the basis for the legal change, went into force on July 1.

Weeks after President Muhammadu Buhari signed the PIA into law in September of last year, the NNPC completed the process of incorporation.

After then, the NNPC Limited was publicly traded with an initial capitalization of N200 billion, becoming the nation’s firm with the greatest share capital in history.

Although the government entities will continue to be its shareholders, the new corporation is anticipated to develop into a nationally recognized, profit-driven oil firm that is independent of the government. But an annual audit will be performed.