NNPCL Reforms In Line With PIA, Says Reps C’mtee Chair

Hon. Ikenga Ugochinyere, Chairman of the House of Representatives Committee on Petroleum Resources (Downstream), has stated that the ongoing reforms at the Nigerian National Petroleum Company Limited (NNPCL) align with the objectives of the Petroleum Industry Act (PIA) 2021.

Ugochinyere explained that the transformation of NNPCL into a commercially viable entity, as stipulated by the PIA, has already yielded positive results. He noted that under the PIA, NNPCL has shifted from being a state-run corporation to a limited liability company, positioning it for greater efficiency and profitability.

Speaking during a gas distribution ceremony in Abuja, Ugochinyere emphasized that the reforms initiated by the PIA have allowed NNPCL to evolve from a government-owned entity, which struggled to deliver expected profits, into a more effective and profit-driven corporate body. He said, “With the coming on board of the PIA in 2021, NNPCL has been witnessing rapid transformation for the benefit of the country. Government is never a good runner of business, so NNPCL as a company is now better off.”

The lawmaker outlined several key aspects of the transformation:

• Corporate Structure: NNPCL’s incorporation as a limited liability company was completed in line with the PIA’s requirements. The government retains full ownership of NNPCL, with the shares held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated.
• Corporate Governance: NNPCL is now governed according to the highest standards of corporate governance. Its annual audits are conducted by independent, experienced auditors to ensure transparency and accountability.
• Operational Efficiency: The PIA has created a new governance and operational framework that has enabled NNPCL to improve its commercial operations. Ugochinyere highlighted that the reforms are already attracting investment, with new refineries being established and existing ones being revived.

The lawmaker concluded by stating that the reforms under the PIA have transformed NNPCL into one of the best national oil companies globally, benefiting Nigerians with improved energy sufficiency and economic growth.