Buhari Unveils Private-Owned NNPC, To Run Without FG’s Interference

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The unveiling took place at the presidential banquet hall, in Abuja.

President Buhari, in his speech, explained the new ccorporation will run without any backing from the Federal Government.

He noted;

We are transforming our petroleum industry to strengthen the growth today July, 19 2022.

NNPC Limited now will operate as a commercial oil company with over 200 million shareholders with integrity and excellence.

A new Petroleum Industry Act-based legal transition took effect on July 1 and the corporation transitioned into a company whose operations will be governed by the Companies and Allied Matters Act weeks before the ceremonial opening.


The PIA was enacted by President Buhari a few weeks later, and the NNPC completed its incorporation process in September of last year.


The NNPC Limited was then floated with an initial capitalization of N200 billion, shattering the previous record for the company with the largest share capital in the country.


It is predicted that the new entity would grow into a national petroleum corporation that is still controlled by the government but is profit-driven and commercially minded.
It will go through an annual audit.

The transformation will give Nigerians a chance to become shareholders in NNPC which has been a government company for 45 years.

NNPC is one of Africa’s largest state Oil & Gas company with a presence in every area of the Oil and Gas value chain.

The change is in accordance with the Petroleum Industry Act’s regulations (PIA).

NNPC is doing all possible to ensure compliance with the provisions of the Petroleum Industry Act (PIA) in terms of rules and deadlines for action, according to Malam Mele Kyari, Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC Ltd.

Kyari stated that the new business will be active when the Ministers of Petroleum and Finance transfer verified assets from the Corporation to the NNPC Ltd.

He said that the new NNPC Ltd. needed to have faith in the firm’s asset base if it wanted to do business with international brands because of the quantity of assets available and the new fiscal regime, positioning it to become Africa’s top energy company.

Kyari, stated in September 2021, that the company’s Initial Public Offer (IPO) to investors can only be made within the following three years.

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