The transition of the Nigerian National Petroleum Company Ltd into an entity that would be regulated under the provisions of the Companies and Related Matters Act will position it as a partner of choice for all oil and gas companies globally.
The Group Managing Director of NNPC Ltd, Mr. Mele Kyari said so on Tuesday in Abuja during the opening session of the Nigeria Oil and Gas Conference.
The conference, themed “Financing the Nigerian Energy Mix for Sustainable Economic Growth”, brought together 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 senior public and private sector officials in the oil and gas industry.
The transformation of NNPC 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 NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.
The PIA was signed into law by President Muhammadu Buhari on August 16, 2021, following its adoption 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 bring about the incorporation of NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Petroleum Resources. Finance on nominal shares of the company.
With the registration by the CAC, NNPC Ltd was launched with an initial capital of N200 billion, making history as the company with the highest registered capital in the country.
Since the promulgation of the PIA last year, NNPC’s management has taken proactive steps to prepare it for July 1 take-off as a CAMA company.
Speaking on development, Kyari told conference participants that the PIA has provided better fiscal, trade and regulatory frameworks to support competitiveness, investment and growth, while creating a fully commercial national oil company.
Stemming from the PIA, the NNPC boss said that one of the things that will be different in NNPC’s transition is that it should become a commercially oriented, for-profit national oil company that would be the envy of all industry players.
He further explained that the NNPC would be run as a private sector company and unlike before when it was government owned, the NNPC should become more efficient in its operations.
This, he noted, will enable the company to effectively maximize returns on investment for Nigeria’s 200 million people, ensure returns for shareholders and pay taxes to the government.
Kyari said President Muhammadu Buhari would officially unveil the new NNPC Ltd on July 19 and invited all industry players to be part of the milestone event.
Kyari said, “On July 1, we transitioned to NNPC Limited both technically and financially in all aspects. Also, on July 19, I invite you all to be present. Mr. President will unveil the NNPC Limited to all of us on July 19, and I invite you.
“The meaning of this for our industry is that you are going to have the partner of choice, the partner who will support you, the partner who will be the most capitalized company in Africa. Not only that, a partner that will emerge from best practices, from anything you can think of because we are going to be a CAMA business. We are going to be another Shell, decision-making would be easy, finances would be too. »
On the issue of the energy mix, he explained that achieving and sustaining a carbon-neutral economy requires inclusive policy actions that ensure access to finance and low-carbon technologies.
As world leaders and businesses join in global solidarity against climate change and reducing carbon emissions, Kyari said NNPC Ltd is making giant strides in reducing its carbon footprint, maintaining the energy security and prosperity in Nigeria.
He said: “As we all know, everyone talks about the energy mix and the energy mix that you know oil is made out of. We are also faced with the realities of today that bring in new forms of energy, renewable energy in all its forms is growing, building but you need the money to do it.
“How do we migrate to reduce our carbon footprint? It may not be the only goal, we can also make money from it. And that’s what the energy companies are looking to say how can we get money to invest in this industry, in the renewable energy industry in a way that we get value out of it and meet our commitments to our country.
“So the very fact that this reality of the energy transition is unfolding for all of us means that you have to find the money to invest it. And we’re seeing a lot of resistance across the world until something happens. happen earlier this year when the Ukrainian challenge kicked in.. You know, it became very, very obvious that you can’t proceed in the face and the way it’s consumed.
Kyari also said that with the huge gas reserves in Nigeria, NNPC Ltd will continue to deepen the use of natural gas to alleviate energy poverty and stimulate investment in clean energy technologies and products.
Sylva, who also spoke at the event, said that with a proven gas reserve of over 200 trillion cubic feet (TCF), Nigeria has huge potential to become an industrialized nation.
He said: “It is very important to note that this switch to gas underlines the seriousness and determination of President Muhammadu Buhari in developing Nigeria’s vast gas resources, not only as a major exporter but also as a major country. gas consumer.
“The President will continue to strengthen the gas value chain as it is vital to transforming the economy of our great country. This initiative will create more than 2 million jobs per year, promote skills acquisition, improve technology transfer and increase the country’s gross domestic product (GDP).
He said previous studies had portrayed Nigeria as an energy-poor country. According to him, 62% of Nigerians do not have access to electricity and 90% do not have access to modern cooking fuels.
“Our government is working on many initiatives to address these challenges, one of which is the gas to power initiative to minimize gas flaring and harness our gas resources into electricity to meet Nigeria’s electricity demand.
“It is very interesting to note that the federal government provides many catalysts, which are necessary to realize the full potential of the gas sector.
“The materialization and full realization of the enormous potentials of this industry depends on the commitment of the government in the implementation of the policies as well as the commitment and support of the private sector to the government in the realization of the policies and the program” , he added.