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Following the signing into law of the Petroleum Industry Bill (PIB) by President Muhamadu Buhari, the Federal Government has disclosed that the Nigerian National Petroleum Company (NNPC) will cease to exist within grow next six months.
Group Managing Director (GMD) of NNPC Mele Kyari, who spoke on behalf of government during an interview with Arise television on Monday, explained that the NNPC will now operate under the Company Allied Matters Act (CAMA).
He further explained that NNPC would now be run as a private company that can pay taxes and dividends to its shareholders.
He said, “All liabilities and assets of the NNPC will be transferred to the new company.
“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.”
Recall that on Monday, President Muhamadu Buhari had signed the PIB into law, a year after it was written and presented to the National Assembly.
