Administrators instruct NNPCL on an adequate risk management framework | The Guardian Nigeria News
The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) advised the new management of the Nigerian National Petroleum Company Limited (NNPCL) on the need to adopt an adequate risk management and control system framework within the new entity.
The institute said that proper checks and balances must be built into the system to ensure that the efficient operation and efficiency of the business is not compromised at any time.
A statement from ICSAN, signed by its Chairman, Taiwo Owokalade, who commended the Federal Government for unveiling the NNPCL as a new entity to replace the current Nigerian National Petroleum Corporation (NNPC), advised management to ensure that the principles of corporate governance are firmly anchored so that the company takes full advantage of its emergence as a private company.
Owokalade, who described the development as positive for the Nigerian economy, said the measure would ensure greater efficiency and enhance transparency in the oil and gas sector.
He said the new entity, which is now a commercially oriented national oil company with all the trappings of a thriving private company, believed it was more structurally ready and organically well-adjusted to play a pivotal role in the sector.
“As a leading professional institute on corporate governance and public administration, we applaud the vision behind this structural substitution of NNPC by NNPCL, which is to ensure greater efficiency and transparency in the petroleum exploration and distribution system.
“This transition to a private company will allow the company to be more value-driven and its operations more inclined to comply with international best practices.
“This is a very commendable development and we are commenting on it for the positive implications it portends for the energy sector and the national economy in general,” he said.
President Muhammadu Buhari recently officially unveiled the NNPCL as the successor to the NNPC under the provisions of the Petroleum Industry Act 2021.
Under the PIA 2021, the federal government is empowered to establish the NNPCL to replace the NNPC within six months of the law taking effect.