From Uche Usim, Abuja
Group Managing Director of the Nigerian National Petroleum Company Limited (NNPC), Mr Mele Kyari, has assured local and foreign investors that the new 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.
Kyari gave the assurance 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.
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.
Earlier in his remarks, the Minister of State, Petroleum Resources, Mr Timipre Sylva said 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 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.