Abuja – Nigeria’s president Muhammadu Buhari on Sunday ordered the incorporation of the state-run oil company within six months and appointed a board for the new firm, his office said.
Last month, Buhari signed a long-awaited oil bill into law after nearly two decades in the works as Africa’s largest crude producer aims to attract more foreign investment to its ailing petroleum sector.
The incorporation of the Nigerian National Petroleum Corporation (NNPC) is also aimed at turning it into commercial and profit-making enterprise, with its shares sold to the public.
“The Group Managing Director of the NNPC, Mr Mele Kolo Kyari, has, therefore, been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA (Petroleum Industry Act) 2021,” Buhari’s office said in a statement.
Buhari, who doubles as oil minister, also appointed a board for the new company, it said.
For several decades, the NNPC has been plagued by inefficiency, corruption and mismanagement.
Under the new legislation, the company will be overhauled to better separate commercial and regulatory roles.