The federal government says the Nigerian National Petroleum
Corporation (NNPC) will cease to exist within the next six months as specified
by the Petroleum Industry Act (PIA).
Speaking with Arise TV on Monday, Mele Kyari, group managing
director of NNPC, said the national oil company would be transformed into a
private company that would pay taxes and dividends to its shareholders.
He said the new company would be incorporated under the
Company Allied Matters Act (CAMA).
On Monday, President Muhammadu Buhari signed the Petroleum
Industry Bill (PIB) into law .
Kyari explained that all liabilities and assets of the NNPC
will be transferred to the new company.
He noted that some toxic assets may be excluded.
“Coming back to the NNPC, the provision of the law clearly
states that the corporation will be transformed into a CAMA company. This
meaning of this is that the company will just be another privately owned
company, in a sense,” Kyari said.
“This company will pay taxes, royalties and dividends to its
shareholders. This isn’t the situation today because the corporation has no
such obligation. This has stalled its development, its growth and its
prosperity.
“According to the new Petroleum Industry Act, a new company
will be incorporated within six months . That means all assets and liabilities
of the NNPC will be transferred to the new company.
“Not all of them, by the way. The bill is very clear. Some
toxic assets of the corporation may not be transferred. The federation or
shareholders can decide to keep some of the assets and leave some with the
corporation.
“Therefore, you are going to have a much more efficient,
much more slimmer, much more commercial national oil company.”
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