CAMA Transitioning: Buhari To Unveil NNPC Ltd On July 18, Says Kyari

President Muhammadu Buhari will on July 18 this year officially unveil the Nigerian National Petroleum Company Ltd, effectively signaling the transitioning of the Company in line with the provisions of the Companies and Allied Matters Act.

The Group Managing Director of the NNPC Ltd, Mr Mele Kyari disclosed this on Monday at the 8th African Petroluem Congress and Exhibition.

The event which is holding in Luanda, Angola is coming at a time of soaring global energy security challenges.

Kyari is being accompanied to the conference by the NNPC Ltd Group Executive Director, Adokiye Tombomieye among other top officials of the NNPC.

The NNPC’s transformation into a CAMA company follows the implementation of the Petroleum Industry Act.

The Corporate Affairs Commission had on September 21 last year completed the incorporation of the NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.

The PIA was signed into law by President Muhammadu Buhari on 16th August, 2021, following its passage by the National Assembly in July of the same year.

Specifically, Section 53(1) of the Petroleum Industry Act 2021, requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance on the nominal shares of the Company.

With the registration by the CAC, the NNPC Ltd was floated with an initial capital of N200bn making history as the company with the highest share capital in the country.

Between when the PIA was signed into law in August last year and now, the management of the NNPC has taken proactive steps to prepare it for the July 1 take-off as a CAMA company.

Kyari told delegates at the conference that Nigeria has taken a major step towards attracting investment in the oil and gas industry by enacting enabling legislations under the Petroleum Industry Act 2021.

He said the PIA has provided better fiscal, commercial and regulatory frameworks to support competitiveness, investment and growth, while creating a fully commercial National Oil Company.

He said, “I thank the Government and people of Angola for warmly receiving us in the historical city of Luanda, and for hosting this important event at a time our world stands between the challenges of energy Security and the necessity for energy transition within the context of energy justice

“This is no doubt a very important time for African oil producers, National Oil Companies, and the Multinationals, to come together to discuss strategies and approach for financing growth to support economic progress of African countries, creating value for investors, while minimizing carbon footprints as the world transit to low-carbon energy resourcing.

“Nigeria has taken a major step towards attracting investment in the oil and gas industry by enacting enabling legislations under the Petroleum Industry Act 2021, providing better fiscal, commercial and regulatory frameworks to support competitiveness, investment and growth, while creating a fully commercial National Oil Company.

“Consequently, our company, the NNPC Limited will be unveiled on 18tb of July 2022 by our President, and I invite you to join us in Abuja Nigeria for the historic event as we create the largest Corporate entity in Africa.”

Flowing from the PIA, one of the things that will be different as the NNPC transitions is that it is expected to become a commercially oriented and profit-driven national petroleum company independent of government and audited annually.

What this means is that in terms of operations, the NNPC would be managed like a private sector enterprise and unlike previously when it was owned by the government, the NNPC is expected to become more efficient in its operations. This will enable the Company to effectively maximize returns on investment for the 200 million Nigerians, ensure returns for shareholders and pay taxes to the government.

Where there is an impact of its operations on prices of petroleum products, the government will be expected to determine how the differential will be managed. What this implies is that impact of prices will not automatically be transferred to the citizens as the government remains committed to providing energy security and sustaining the economy.

Going by the transitioning, the NNPC’s operations will not be subsidized by the government because as a CAMA Company, it would be expected to pay dividends to shareholders which in this case is the government.