By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) is on course to becoming a limited liability company as President Muhammadu Buhari submitted the anticipated Petroleum Industry Bill (PIB) to the National Assembly to begin deliberations and passage.
This was disclosed in a report by The Punch which reported that the NNPC Limited will be incorporated by the Minister of Petroleum, who alongside the Minister of Finance will determine the national oil company’s assets and liabilities that will be inherited by the new firm.
This means they will determine the number and nominal value of the shares to be allotted, which shall form the initial paid-up share capital of the NNPC Limited and the government shall subscribe and pay cash for the shares.
It was noted that the ownership of all shares in NNPC Limited shall be vested in the government at incorporation and held by the Ministry of Finance incorporated on behalf of the government.
It notes, “The Minister (of Petroleum) and the Minister of Finance shall determine the assets, interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the minister shall cause such assets, interests and liabilities to be transferred to NNPC Limited,” the newspaper quoted parts of the bill.
“Assets, interests and liabilities of NNPC not transferred to NNPC Limited or its subsidiary under subsection 1 of this section shall remain the assets, interests and liabilities of NNPC until they become extinguished or transferred to the government.
“NNPC shall cease to exist after its remaining assets, interests and liabilities other than its interests, assets, and liabilities transferred to NNPC Limited or its subsidiaries under subsection 1 of this section shall have been extinguished or transferred to the government.
“The minister shall be at the incorporation of NNPC Limited, consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid-up share capital of the NNPC Limited and the government shall subscribe and pay cash for the shares.
“Ownership of all shares in NNPC Limited shall be vested in the government at incorporation and held by the Ministry of Finance incorporated on behalf of the government.”
It was also reported that the bill seeks to scrap the Petroleum Products Pricing Regulatory Agency (PPPRA) and will establish the Nigerian Upstream Regulatory Commission and the Downstream Petroleum Regulatory Authority known as “the Authority”.
Modupe Gbadeyanka