President Muhammadu Buhari has finally submitted the petroleum industry bill (PIB), which seek to scrap two major petroleum regulatory agency to the national assembly for consideration and passage.
The proposed bill seeks to scrap the Nigerian National Petroleum Corporation (NNPC), Petroleum Products Pricing Regulatory Agency (PPPR) and establish the Nigerian National Petroleum Company Limited after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.
“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.”
Steps to reform the country’s oil sector began in 1999, but successive administrations failed to achieve the feat.
The bill will also establish the Nigerian Upstream Regulatory Commission and the Downstream Petroleum Regulatory Authority.
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