NNPC officially changes name from a wholly state-run entity to a commercial firm, as president Muhammadu Buhari says entity will deliver value to 200 million shareholders.
In a landmark event that officially changes the oil firm from a wholly state-run entity to a commercial oil company, limited by shares, President Muhammadu Buhari says the new status of Nigerian National Petroleum Company Limited will enable the commercial entity to deliver value to 200 million shareholders.
Buhari, who was accompanied by the Senate President, Ahmad Lawan, Speaker of the House of Representatives, Femi Gbajabiamila among other dignitaries at the State House Conference Centre in Abuja, assured the new company will guarantee energy security in the country.
According to the President, NNPC Limited will sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and be free from institutional regulations such as the Treasury Single Account (TSA).
The Nigerian National Petroleum Company Limited on Tuesday made it clear that it would no longer remit any money to the Federation Accounts Allocation Committee for sharing to the three tiers of government monthly.
It said this was based on its latest transition from a public corporation to a limited liability company and that it currently owed no money to FAAC, as all monetary arrears to the committee were owed by the old corporation and not the new oil company.
Before its official unveiling as a limited company, the NNPC had failed to make any remittance to FAAC since this year. It had consistently deducted the amount it spends on fuel subsidy monthly, a development that had eroded the funds which it would have remitted to the committee.
Findings showed that between January and May this year, the oil company had spent N1.274tn on petrol subsidy, being the sole importer of the commodity into Nigeria. It, however, described its subsidy spending as under-recovery of a Premium Motor Spirit/value shortfall.