Incorporation of NNPC Ltd

Announcing the latest decisions and changes to the board, the Special Adviser to Nigeria’s President (Media and Publicity), Mr. Femi Adesina, in a statement, stressed that the president gave the order for Incorporation of Nigerian National Petroleum Company ( NNPC) in his capacity as petroleum minister.

The statement issued, “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.” “President Buhari has also approved the appointment of the board and management of the NNPC Limited, with effect from the date of incorporation of the company. The president named Senator Ifeanyi Ararume as Chairman of the Board while Mele Kolo Kyari and Umar I. Ajiya were appointed as Chief Executive Officer, and Chief Financial Officer, respectively,”

According to the new law, “The minister shall within six months from the commencement of this Act, cause to be incorporated under the Companies and Allied Matters Act, a limited liability company, which shall be called Nigerian National Petroleum Company Limited (NNPC Limited).

“The minister shall at the incorporation of NNPC Limited, consult with the minister of finance to determine the number and nominal value of the shares to be allotted, which shall form the initial paid-up share capital of NNPC Limited and the government shall subscribe and pay cash for the shares.” In addition, section 53 (7) stipulates, “NNPC Limited and any of its subsidiaries shall conduct their affairs on a commercial basis in a profitable and efficient manner without recourse to government funds.”

When the process is fully consummated, NNPC would cease to exist as specified under the law and would eventually be transformed into a private company that would pay taxes and dividends to its shareholders

Information Source: Media

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