PIA: Buhari Directs Incorporation Of NNPC LTD, Appoints Board

President Muhammadu Buhari, in his capacity as Minister of Petroleum Resources, has directed the incorporation of the Nigerian National Petroleum Company Limited.

This 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.

A statement from Femi Adesina, Special Adviser to the President (Media and Publicity) on Sunday confirmed the directive.

The statement said 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.

The statement named the chairman of the Board as 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 Group Managing Director of the Nigerian National Petroleum Corporation has disclosed that the Corporation, within the next six months would be transited to a new company, ‘NNPC Nigeria Limited’ as stated in the Petroleum Industry Act.

The Petroleum Industry Bill was signed into law by President Buhari last month.

Kyari had shortly after the Bill was signed into law noted that the provision of the new Act states clearly that the NNPC be transformed to a company that will operate under the Companies and Allied Matters Act.

“The meaning of this is that the company will be another privately owned company in a sense, it will pay taxes, pay royalties and pay dividend to its shareholders.

“This is not the situation today, because the Corporation has no such obligation, this means that it has stall its growth, its development and prosperity, but with the bill, it means that within six months, a new company will be incorporated,” he said.

He further explained that all liabilities, personnel and assets of the NNPC, within the six months period will be transferred to the new company.

“Within 6 months you must incorporate the NNPC Nigeria limited by law, that means once you incorporate, there will automatically be process of transfer of assets, transfer of personnel and many others, the furthest that we can go while doing this is six months,” he added.

According to the GMD, the transition would promote a more efficient oil company, adding that the transition does not only affect NNPC but all institutions under the PIA.

“The government has established a structure and implementation committee to ensure a smooth transition from where we are today, not just NNPC but every institution under the Petroleum Industry Act, and there will be a system and framework that will take care of the transition,” he added.