The nigerian National Petroleum Corporation is the backbone for the economic development of Nigeria that provides fuel and feedstock to facilitate the nigerian industries. And also meet the needs of individual customers and commercial enterprises. NNPC is one of the major petroleum corporations that generates revenue in a huge amount for the nation.
The NNPC is holding a company that oversees the interests of nigerian state in the oil industry of the country. The company is based on four main operating units that are:
Refineries and Petrochemicals.
Exploration and Production.
Finance and Accounts
Corporate services unit.
Oil production is the driving force of Nigeria and the country gets the higher rank as the largest oil production company is Africa. 95% of the country foreign exchange generates revenue from NNPC recruitment form such as crude oil, natural gas production, lifting and utilisation,refinery operations, supply of petroleum products, and distribution etc.
Early History of Oil Industry in Nigeria:
Nigeria discovered oil for the first time in 1908. In the 1930s the exploration of oil was processed in the form Shell-BP Petroleum Development Company of Nigeria Ltd with the control of Shell and British petroleum (BP). However the exploitation of the country’s reserves was not begun until the late 1950s. The government of Nigeria firstly introduced regulations about the taxation of the oil industry profits. In which the profit was divided 50-50 between the government of Nigeria and the oil company.
During the 1960s the industry made great progress because of the development of more export markets particularly in the United Kingdom and Europe. By the mid of 1960s, Nigeria started considering the ways in which the resources that are being exploited by the Western oil companies could be used as better resources for the development of the country.
The country formulated its first agreement for taking an equal stake in one of the oil-producing companies that was Nigerian Agip Oil Company, which was owned by Agip of Italy and Phillips of the United states. The option of taking up the equal stake in the company is the first step toward the creation of NNPC that was exercised until April 1971.
By 1971, some factors pushed the Nigerian government to take the stakes of western companies to take back the NCCP holdings. One of the factors is the Biafran war of session, that was started in the year 1967.
The Nigerian National Petroleum Corporation (NNPC) is the state oil of Nigeria which was established on April 1, 1977 as a joint effort of Nigerion oil company and the Federal ministry of Mines and steel. The NNPC takes 33.33% stakes in the Agip oil company and 35% stakes in Safrap.