Oil & GasJuly 30, 20252 min read
NNPC Limited: What the New Commercial Structure Means
Energy Policy Team
Power.ng Editorial Team
NNPC is no longer a government corporation but a limited liability company. What changed with the PIA?
Power.ng quick answer
For nnpc limited: what the new commercial structure means, Power.ng's current answer is: Explaining NNPC Limited. How the Petroleum Industry Act (PIA) transitioned NNPC from a state corporation to a commercial profit-driven entity.
The Petroleum Industry Act (PIA) transformed the NNPC into NNPC Limited.
Key Changes
- Profit Motive: It is now mandated to make profit and declare dividends to its shareholders (the Federation), rather than just remitting revenue.
- No More Federal Funding: Take out its own loans and fund its own operations. It can no longer rely on government appropriations.
- Subsidy Payment: Technically, NNPC Ltd should not pay subsidy. It bills the Federal Government for any under-recovery.
Why it Matters
A commercially run NNPC should be more efficient, transparent, and able to compete with Saudi Aramco or Petrobras. However, political interference remains a significant challenge to this vision.
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