The new management of Nigerian National Petroleum Company Limited (NNPCL) has been counseled by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) on the necessity of adopting an acceptable risk management and control system framework within the new organisation.
According to the institute, the system needs to include adequate checks and balances to guarantee that the company’s effectiveness is never jeopardized.
For the company to fully benefit from its transformation into a private company, the management was advised in a statement by ICSAN, signed by its president Taiwo Owokalade, to ensure that the corporate governance principles are well-entrenched. The statement praised the Federal Government for announcing the NNPCL as a new entity to replace the existing Nigerian National Petroleum Corporation (NNPC).
Owokalade said the action will promote improved efficiency and increase openness in the oil and gas sector, characterizing the development as beneficial for the Nigerian economy.
The new organization, which is now a commercially focused national petroleum corporation with all the characteristics of a successful private enterprise, is more structurally positioned and organically well-adjusted, according to him, to play a crucial role for the industry.
We appreciate the goal of this structural change, which is to provide more efficiency and openness in the oil exploration and distribution system, as a leading professional institute on corporate governance and public administration.
“This change to a private company will allow the business to become more value-driven and more likely to operate in accordance with global best practices.
He stated, “This is a really commendable accomplishment, and we comment on it for the favorable consequences it portends for the energy industry and the country’s economy generally.”
In accordance with the requirements of the Petroleum Industry Act, 2021, President Muhammadu Buhari has officially launched the NNPCL as the NNPC’s replacement.
The Federal Government is authorized by the PIA 2021 to establish NNPCL to replace the NNPC within six months of the Act’s start date.