NEITI Praises Transition Of NNPC

The Nigerian Extractive Industries Transparency Initiative (NEITI) has welcomed the Nigeria National Petroleum Corporation's conversion to an independent limited liability company with great anticipation.

The NEITI's executive secretary, Dr Orji Ogbonnaya Orji, attended the unveiling on Tuesday in Abuja and expressed the hope that the organisation's transformation into a business entity will better position it to compete favourably with the biggest oil companies in the world.

Orji, according to a statement made by Obiageli Onuora, Head of Communications and Advocacy, NEITI, said the transition complied with the recommendations of industry reports the organisation had published for the oil and gas sector.

The report, which covered the years 1999 to 2019, also contributed to the passing of the Petroleum Industry Act in 2021. (PIA).

He said that NEITI has regularly advised that Nigeria's national oil business be privatised in order to make it competitive with other national oil companies across the world in the NEITI oil and gas studies that covered the years 1999 through 2019.

"Nigeria needs a business-oriented NNPC to meet the nation's energy needs, energy transition, energy security, economic diversification, and the creation of a sustainable energy future for the nation.

He continued by saying that Nigeria's freedom from fuel importation was one of the new NNPC's immediate difficulties.

“The immediate questions that an average Nigerian is asking are what is likely to change from the NNPC we know and the new NNPC Limited?

"What will happen to jobs, institutions, profit-making, transparency and accountability, ” he said.

He praised the new NNPC leadership and the current administration for having the political will to implement this reform.

Orji stated his belief that the NNPC Ltd. would uphold its duties as a firm supporting the global EITI.

He urged the Federal Government once more to accomplish the same success for the solid minerals industry.

According to the transparency boss, “Nigeria’s solid minerals sector also needs a holding company similar to NNPC Ltd.

"NEITI is advocating for the NLNG model which has proven to be sustainable, profitable and accountable.

Despite the challenges faced by the oil and gas sector during the Covid-19 pandemic, NLNG in Nigeria posted profits and even dividends. This is remarkable”.

With this announcement, some of the PIA's requirements have been fulfilled, and with an initial share capital of N200 billion and net assets over $59 billion, NNPC is one of Africa's national oil and gas firms to be listed on a public exchange.

The NEITI is confident that the PIA Steering Committee (PIASTEERCO), of which it is a member, will see to it that the PIA's provisions are strictly followed and that Nigeria's oil and gas sector is set up for a successful and long-lasting future.