The institute said proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised.

A statement by ICSAN, signed by its President, Taiwo Owokalade, who lauded the Federal Government for unveiling the NNPCL as a new entity to replace the extant Nigerian National Petroleum Corporation (NNPC), advised the management to ensure that the principles of corporate governance are well-entrenched for the company to fully reap the benefits of its emergence as a private company.

Owokalade, who described the development as a positive one for the Nigerian economy, stated that the measure would ensure greater efficiency and boost transparency in the oil and gas sector.

He said the new entity, which is now a commercially-oriented national petroleum company with all the attributes of a thriving private enterprise, believed it is more structurally poised and organically well-adjusted to provide a pivotal role for the sector.

“As a leading professional institute on corporate governance and public administration, we applaud the vision behind this structural substitution of the NNPC with NNPCL, which is to ensure greater efficiency and transparency in the oil exploration and distribution system.

“This transition to a private company will enable the company to be more value-driven and its operations more inclined to conform to international best practices.

“This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation’s economy in general,” he said.

President Muhammadu Buhari officially unveiled the NNPCL as a successor to the NNPC recently, in deference to the provisions of the Petroleum Industry Act, 2021.

Under the PIA 2021, the Federal Government is empowered to establish NNPCL to replace the NNPC within six months after the commencement of the Act.