An economist, Ademola Adigun, has expressed hope that the Nigeria National Petroleum Corporation (NNPC) Ltd will no longer be a drain on the country’s resources if well managed, and will be a world class company that can compete with other International Oil Companies (IOCs).
He stated this while reacting to the unveiling of the new NNPC Ltd by President Muhammadu Buhari in Abuja, on Tuesday.
The NNPC, following the passage of the Petroleum Industry Act (PIA), became a company to be regulated under the Companies and Allied Matters Act (CAMA) and was formally unveiled on Tuesday.
Adigun said with the new development, NNPC Ltd will become profitable, pay taxes and dividends into the Federation account and most importantly, more accountable and transparent.
“But that needs more than a name change. For that to happen requires a strong board, capable leadership that can make tough decisions and support from the government in freeing it from encumbrances. We will not know till 3 years if what should happen occurs. This is a good start, a commendable one. Let’s hope subsidies are ended and refineries offloaded to more capable managers in the long run,” he said.
He also hailed President Buhari, the Group CEO of NNPC, Mele Kyari and the National Assembly, for the signing of the PIA and partially implementing it, even as more can be done.
Similarly, Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), in separate comments, hailed the unveiling of the new NNPC Ltd.
While MOMAN tasked the NNPC Ltd to be competitive and efficient in its operations going forward in order to achieve the aim of the transition and for the benefit of the nation, IPMAN described the move as a good omen because it would open up both the downstream and upstream sectors of the industry and that the company would become profitable, which ultimately will be a game changer for our economic situation.
Chairman, MOMAN, Mr Olumide Adeosun, said the direction that they have taken is certainly one that has proven to be workable for other national oil companies and definitely a step in the right direction.
“Nigeria will benefit as a country consequently because it means that efficiency will now be one of their drivers rather than politics,” he added.
He further said among the implications was that the company will have a preference and deference to a free market rather than monopoly.
President, IPMAN, Mr Chinedu Okoronkwo, said the new NNPC Ltd can now do business like any other oil company and compete “because competition will always bring out the best of any situation.”
He said the transition of the NNPC and the coming on stream of the Dangote Petroleum Refinery would play significant roles in shaping Nigeria’s energy future.
