NNPC Announces Plans For Public Ownership Of Shares

The Nigerian National Petroleum Company (NNPC) has made a significant announcement, signaling a big change in how the country’s oil and gas sector operates.

During the 2024 CERAWEEK in Houston, NNPC’s Group Chief Executive Officer, Mele Kyari, shared details about this shift towards public ownership. It’s all part of the larger reforms mandated by the Petroleum Industry Act (PIA).

The main goal of this transformation is to turn NNPC from a government-owned entity into one that’s more focused on making profits and running like a regular business. This means NNPC will start taking on financial responsibilities like paying taxes, royalties, and eventually sharing dividends with its shareholders.

In practical terms, NNPC will become a limited liability company under this new plan. The aim is to have its shares available for purchase on the stock exchange within three years of making this change. This opens up the opportunity for people from the public to invest in NNPC, spreading ownership and potentially boosting the economic advantages that come from Nigeria’s oil and gas resources.

This move lines up with what the PIA lays out, providing a clear roadmap for NNPC to become a publicly traded company on the stock market.

Beyond ownership restructuring, NNPC is also keen on tapping into Nigeria’s vast gas reserves, which are estimated to be over 200 trillion cubic feet. The focus here is to use gas more within the country to fuel industrial growth and overall economic progress. By doing so, NNPC aims to not only reduce emissions but also cut down on the wasteful practice of gas flaring.

The plan includes capturing flared gas for domestic purposes, which not only aligns with global environmental objectives but also supports the government’s strategy to transition towards cleaner energy sources.

All these changes are firmly rooted in the law through the PIA, which provides the necessary legal framework for NNPC’s transformation into a fully commercial entity. This sets the stage for NNPC to attract more investments and operate efficiently in the competitive global oil and gas market.

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