By Henry Uche
The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), has lauded the Federal Government for unveiling the Nigerian National Petroleum Company Limited (NNPCL) as a new entity to replace the extant Nigerian National Petroleum Corporation (NNPC).
President Muhammadu Buhari officially unveiled NNPCL as a successor to the NNPC in Abuja on Tuesday, July 19, 2022, in deference to the provisions of the Petroleum Industry Act, 2021.
The development has freed the company from institutional regulations and given it the power to conduct its affairs as a private company.
ICSAN, in a statement by its President, Mr. Taiwo ’Gbenga Owokalade, made available to newsmen yesterday, described the development as a positive one for the Nigerian economy. ICSAN boss further stated that the measure would ensure greater efficiency and boost transparency in the oil and gas sector.
Owokalade said “ICSAN sees the transition of NNPC from a public corporation into a limited liability company as a positive development for the Nigeria economy. The new entity, NNPCL is now a commercially-oriented national petroleum company with all the attributes of a thriving private enterprise.
“As a leading professional Institute on Corporate Governance and Public Administration, we applaud the vision behind this structural substitution of the NNPC with NNPCL, which is to ensure greater efficiency and transparency in the oil exploration and distribution system.
“We believe the new entity is more structurally poised and organically well-adjusted to provide a pivotal role for the sector. This transition to a private company will enable the company to be more value-driven and its operations more inclined to conform to international best practices. This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation’s economy in general,”
Owokalade advised the management of the NNPCL to ensure that the principles of corporate governance are well-entrenched in the new entity for the company to fully reap the benefits of its emergence as a private company.