Mallam Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Commission (NNPC) Limited, has stated that the newly commercialized national oil firm is owned by all Nigerians.
The NNPC boss clarified that the oil company has not been rebranded, but rather has undergone a total turnaround in its modes of operation as mandated by a legislative act.
He said, “First of all, we are not rebranding. Rebranding means that there’s something about the colours, a few things you don’t like you want to change. That’s not what we did. It is simply a total turnaround because you’re dealing with a corporation that was established by the act of the National Assembly to operate as a business and as an agency of government.
“So, when you abandoned that position to come to a clear commercial position backed by laws that do not necessarily act of establishing a company but a complete turnaround of our fiscal and regulatory framework in the oil and gas sector, and beyond subjecting this company to the rules that other players in the oil sector are doing.
”That brings with it another layer of control such as governance issues that’s common to all other businesses. So, it’s a brand new situation, but we are not rebranding. You’re moving from a past that’s clearly of a definite and different expectation to a new expectation where this company must deliver value to its shareholders.”
Kyari further stated that all Nigerians are the shareholders in the new system of the NNPC Limited, but are represented by the ministries of petroleum and finance.
“NNNP is owned by the over 200m Nigerians. We are the shareholders of the NNPC. The shareholders are always represented. And in this context, it’s now represented by the ministry of petroleum (incorporated) and the ministry of finance (incorporated) on behalf of the rest of the federation. That’s on behalf of all of us.
“The federation includes the state and the local governments, and by implication, the whole body of the 200 million Nigerians. But all of us cannot sit on the board of this company. The Petroleum Industry Act has indicated that the President is delegated the responsibility to appoint a board on behalf of the 200 million shareholders, to appoint the leadership of this company and to also appoint the board of directors for this company.
“So, it’s a delegated responsibility,” he said.
President Muhammadu Buhari had on Tuesday unveiled the new Nigerian National Petroleum Company Limited, a landmark event that officially changed the oil firm from a wholly state-run entity to a commercial oil company, limited by shares.
