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HomeTop NewsPresident Buhari directs incorporation of NNPC Limited, appoints board

President Buhari directs incorporation of NNPC Limited, appoints board

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President Muhammadu Buhari on Sunday directed that the Nigerian National Petroleum Company Limited should be incorporated within six months, a move that could allow it to sell shares in the future.

Buhari, who doubles as petroleum minister, signed an oil bill into law last month that has been in the works for nearly two decades, aiming to overhaul the sector and turn the state-owned oil company into a private firm. 

He said the directive was in consonance with Section 53 (1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company.

A statement by presidential spokesman, Femi Adesina stated the president has constituted the board of the yet to be incorporated oil firm with the current Group Managing Director of the NNPC, Mele Kolo Kyari to assume the position of the chief executive of the commercialise oil firm.

Mele was also directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.

READ ALSO: Ex-President Obasanjo lashes at Buhari over huge debt accumulation

“Also, by the power vested in him under Section 59(2) of the PIA 2021, President Buhari has approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the Company,” Adesina stated.

The president appointed Ifeanyi Ararume, as chairman of the board of the yet to be incorporated firm, Umar I. Ajiya will become the Chief Financial Officer, respectively.

Other Board Members are; Tajudeen Umar (North East), Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Margaret Chuba Okadigbo (South East), Constance Harry Marshal (South South), and Pius Akinyelure (South West).

The new oil law requires NNPC to be incorporated within six months, Buhari said in a statement, appointing Ifeanyi Ararume as NNPC chairman and its current Chief Executive Mele Kyari to lead the firm.

Kyari has said NNPC could consider an initial public offering (IPO) within three years. The incorporation could pave the way for NNPC to sell shares. 

 

Buhari said last month that NNPC made its first profit in 44 years in 2020.

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