The Nigerian National Petroleum Company (NNPC) Limited has announced that it has started paying dividends to its shareholders for the first time in its history, following the enactment of the Petroleum Industry Act (PIA) 2021.
The PIA 2021, which was signed into law by President Muhammadu Buhari in August, has transformed the state-owned oil company into a commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.
The new law also created two new entities: the Nigerian Upstream Regulatory Commission (NURC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which will oversee the upstream and downstream sectors of the oil and gas industry respectively.
The NNPC Group Chief Executive Officer (GCEO), Mele Kyari, disclosed this during a courtesy visit to the Senate President, Godswill Akpabio, at the National Assembly in Abuja, on Wednesday.
Kyari said that NNPC Limited has become more profitable and transparent under the new legal framework, projecting an N2 trillion increase in its profitability when the 2022 Audited Financial Statements (AFS) are released.
“With the passage of the PIA 2021, NNPC’s profitability margins have significantly risen, growing from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021,” the GCEO said.
He added that the NNPC Limited is involved in the entire value chain of the oil and gas business and controls about 30 per cent of the nation’s petroleum downstream retail market.
He assured the Senate President that the NNPC Limited has made a robust plan for the supply of petroleum products, especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the New Year festivities.
“We have made a robust plan for the forthcoming end-of-the-year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” he said.
He also identified crude oil theft and pipeline vandalism as major challenges to the company’s business, saying that the recent collaboration with the nation’s security services, as well as third-party security contractors, has been yielding results, mostly in the area of increased crude oil production.
He further said that the NNPC Limited is investing in several gas and power projects across the country, aimed at supporting the Federal Government’s power generation and industrialisation aspirations.
He also said that the company is working to revamp local refining of petroleum products and collaborating with indigenous refiners to ensure that Nigeria becomes a net exporter of petroleum products.
The Senate President commended the NNPC Limited for its achievements and pledged the support of the 10th Senate to the company.
He said that the Nigerian Parliament appreciates the Kyari-led management for its commitment to ensuring a robust petroleum product supply during the yuletide period.
“Nigerians always want to hear good news. We are glad that you have made robust plans to provide sufficient product supply this coming festive period and beyond,” Akpabio said.
He also expressed optimism that the NNPC Limited will continue to deliver on its mandate of guaranteeing Nigeria’s energy security, which is critical to national security.
The NNPC Limited is one of the largest oil and gas companies in Africa, with operations in the exploration, production, refining, distribution, and marketing of petroleum products.
The company has been struggling with financial and operational challenges for decades, due to mismanagement, corruption, and lack of accountability.
The PIA 2021 is expected to address these challenges and usher in a new era of efficiency, transparency, and profitability for the company and the nation.
Source: Business Day
