Understanding The New NNPC

PIA, passed in Aug 2021, requires the Minister of Petroleum (in consultation with Finance Minister) to incorporate a new company, to be called Nigeria National Petroleum Company Limited (NNPC Ltd), to take over most of the assets & liab of NNPC

What is Changing?

1. The C is changing from Corporation to Company. When it was a corporation, it was established and governed by its own law, called NNPC Act 1977 (as amended). Now as a company, it will be governed by Companies & Allied Matters Act (CAMA), the law that governs other companies in Nigeria.

2. The addition of “Limited” means it is a private limited liability company, rather than a PLC (public company). In other words, you cannot buy the shared of NNPC now.

3. The shareholders remain the govt thru Ministries of Finance & Petroleum Incorporated.

NNPC Ltd is still a state-owned company (public in that sense), but not public company in the sense of listing on stock exchange (companies that carry “Plc”)

5. The above means PIA did not privatize NNPC. Shares are still 100% owned by government

Keep reading https://www.studentvillage.com.ng/forums/topic/understanding-the-new-nnpc/

As it is now a company, hope we won't buy fuel #500 per litre? Chaii..