Our Transition Into CAMA Company Will Turn NNPC Into A Partner Of Choice For Investors—Kyari

The transition of the Nigerian National Petroleum Company Ltd into an entity that would be regulated in line with the provisions of the Companies and Allied Matters Act will position it as a partner of choice to all oil and gas companies globally.

The Group Managing Director of the NNPC Ltd, Mr Mele Kyari said this on Tuesday in Abuja at the opening session of the Nigeria Oil and Gas Conference.

The conference which had as its theme, “Funding the Nigerian energy mix for sustainable economic growth” was attended by the Minister of State for Petroleum Resources Timipre Sylva, the Minister of Industry, Trade and Investment, Niyi Adebayo, the Chairman of the Board of NNPC Ltd, Margary Okadigbo and other top officials in the public and private sector of the oil gas industry.

The NNPC’s transformation into a CAMA company followed 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.

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

Speaking on the development, Kyari told participants at the conference that the PIA has provided better fiscal, commercial and regulatory frameworks to support competitiveness, investment and growth, while creating a fully commercial National Oil Company.

Flowing from the PIA, the NNPC Boss said 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 that would be the envy of all players in the sector.

He explained further that 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, he noted, 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.

Kyari said that President Muhammadu Buhari will officially unveil the new NNPC Ltd on July 19 and invited all players in the sector to be part of the epoch-making event.

Kyari said, “On 1st of July, we crossed over to the NNPC Limited both technically and financially on every aspect. Not only that, on the 19th of July, I’m inviting all of you to be present. Mr. president will unveil the NNPC Limited to all of us on the 19th of July, and I’m inviting you.

“The meaning of this to our industry is that you’re going to have the partner of choice, the partner that will support you, the partner that will be the largest capitalized company in Africa. Not only that, a partner that will be born of best practice, of everything that you can think of because we’re going to be a CAMA company. We are going to be another Shell, decision making would be easy, finances will also be easy.”

On the issue of energy mix, he explained that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantees access to finance and low carbon technology.

As world leaders and businesses join in the global solidarity against climate change and reduction of carbon emissions, Kyari said the NNPC Ltd is taking giant strides in lowering its carbon footprint, sustaining energy security and driving prosperity in Nigeria.

He said, “As we are all aware, everyone is talking about energy mix and energy mix that you know petroleum is elaborate. We are also facing the realities of today which is bringing new form of energies, the renewables in all its form is growing, is building but you need money to do it.

“How do we migrate so that we can reduce our carbon footprint? That may not be the only objective, we can also make money from it. And that’s what energy companies are looking at saying how can we get money to put into this industry, into the renewables industry in a manner that we can take value from it and also meet our commitments to our country.

“So, the very fact that this energy transition reality is unfolding to all of us means that you must find money to put it in. And we are seeing the great resistance across the globe until something happened earlier this year when the Ukrainian challenge came off. You know, it became very, very obvious that you cannot proceed in the face and the manner in which it is consumed.”

Kyari also said that with the huge gas reserves in Nigeria, the NNPC Ltd will continue to deepen natural gas utilization to reduce energy poverty, and boost investment in clean energy technology and products.

Sylva who also spoke at the event said with a proven gas reserve of over 200 Trillion Cubic Feet (TCF), Nigeria has huge potentials to become an industrialized nation.

He said, “It is very important to note that this shift to gas underscores President Muhammadu Buhari’s seriousness and determination in the development of Nigeria’s vast gas resources, not just as a major exporter but also as a major gas consuming nation.

“The president will continue to strengthen the gas value chain as it is vital in transforming the economy of our great country. This initiative will create over 2 million jobs per annum, promote skills acquisition, enhance technology transfer in addition to growing the nation’s Gross Domestic Product (GDP).

He said previous studies have presented Nigeria as an energy poor country. According to him, 62 per cent of Nigerians lack access to electricity and 90 per cent lack access to modern cooking fuels.

“Our government is working on many initiatives to tackle these challenges, one of which is the gas to power initiative aimed at minimizing gas flaring and harnessing our gas resources to electricity to meet Nigeria’s electricity demands.

“It is very worthy to note that the Federal Government is providing a lot of enablers, which are needed to realise the full potential of the gas sector.

“The materialization and full realization of this industry’s enormous potentials depend on government commitment to policy implementation as well as private sector commitment and support to government in achieving policy and agenda,” he added.