FG To Maintain Petrol Pricing After Unveiling NNPC Ltd – Kyari

The Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, says the Federal Government will still determine the pump price of premium motor spirit (PMS) popularly called petrol, even after the expected unveiling of the new NNPC Limited by President Muhammadu Buhari.

He stated in an interview with Channels television on Sunday that the company would be more transparent and ensure continued disclosure of its operational reports.

He said that such would be pleasing to the lending community and the global energy community that will like to see what they are doing.

Also Read: Nigeria and the New NNPC

He noted that once the trust becomes higher and the ability to access capital becomes real and easier, then ultimately, it would give NNPC limited all the advantages that it requires.

He added that NNPC limited loses nothing by being transparent.

The NNPC limited is expected to officially transit to a private entity after being unveiled by President Buhari.

It would then be regulated in line with the provisions of the Companies and Allied Matters Act (CAMA) and the nomenclature of the Group Managing Director (GMD) of NNPC would also change to the Group Chief Executive Officer (GCEO), in line with the Petroleum Industry Act (PIA) 2021.

President Muhammadu Buhari, on August 16, 2021, signed into law the PIA following its passage by the National Assembly in July 2021.

Section 53(1) of the Petroleum Industry Act 2021 requires the minister of petroleum resources to cause for the incorporation of NNPC limited within six months of the enactment of PIA in consultation with the minister of finance on the nominal shares of the company.

With the registration by CAC, NNPC limited was floated with an initial capital of N200 billion and so made history as the company with the highest share capital in Nigeria.

Kyari said: “We will procure the product, we will sell to the stakes and the stakes will sell to the public. There is nothing to suggest that there is any indication at this point in time that there will be a change in the price of petroleum products. It has nothing to do with our operation. For us, those who are doing business for us, we charge them fees so that this company can make money.

“Actually it has now become more demanding to be made more transparent.

NNPC is a partner company. You have to make certain basic disclosures to your shareholders and to the oil community that companies are ordinarily not required to do. It is not just publishing your financial statement.

“There are other disclosure requirements by being a partner company. We believe it is good for our company, we will continue to sustain this. We are the only company that publishes our operational reports such as production, shares and others on a monthly basis. We are not only transparent but we are actually naked.

“And because companies and their partners, particularly the lending community, the global energy community will like to see what we are doing. Once the trust becomes higher and the ability to access capital becomes real and easier, then ultimately, it gives you all the advantages that you require. So, you lose nothing by being transparent.”