From State Monopoly To Corporate Autonomy: Ownership Restructuring And The Strategic Realignment Of The Nigerian National Petroleum Company Under Nigeria’s Petroleum Industry Act (PIA) 2021
- IJLLR Journal
- Aug 23
- 1 min read
Adewole Adedeji & Laura Ani
ABSTRACT
This study examines the structural and governance transformation of Nigeria’s state-owned oil entity from the Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited (NNPC Ltd) under the 2021 Petroleum Industry Act (PIA). Employing a doctrinal research methodology, the analysis centers on a systematic review of legal frameworks, statutory instruments, and policy documents to evaluate the ownership dichotomy and governance reforms. The NNPC, historically marred by inefficiencies and political interference, is contrasted with NNPC Ltd, a corporatized entity governed by the Companies and Allied Matters Act (CAMA), to interrogate shifts in legal structure and operational autonomy. International precedents such as Norway’s Equinor and Malaysia’s Petronas are examined through a comparative legal lens to identify best practices in state-owned enterprise (SOE) transitions. Primary sources include the PIA, CAMA and legislative reports, while secondary sources encompass scholarly critiques, audit findings, and policy analyses. The doctrinal approach reveals persistent tensions between state ownership and commercial autonomy, highlighting risks of regulatory ambiguity and political influence. The study posits that NNPC Ltd.’s efficacy depends on strict adherence to corporate law principles. Policy recommendations prioritize legal reforms to insulate governance from political interference and clarify regulatory roles. By grounding the analysis in statutory interpretation and comparative law, this research contributes to discourse on legal frameworks for SOE reforms, proposing strategies to align Nigeria’s oil sector with global governance standards and sustainable growth objectives
Keywords: Ownership and Control, Petroleum Industry Act 2021, State Owned Enterprises, Commercialisation, Autonomy
