Under the new Petroleum Industry Bill (PIB) 2020 being considered by the National Assembly, the Nigerian National Petroleum Company (NNPC) will become a incorporated as a private company with the Ministry of Finance retaining all the shares on behalf of the federal government.
The Bill, which has been transmitted to the National Assembly by President Muhammadu Buhari according to reports in the Punch, will see the NNPC as presently structured scrapped.
Also expected to be scrapped will be the the Petroleum Products Pricing Regulatory Agency (PPPRA).
In place of NNPC will be a new company, with the same name but the new structure will be signifiied.
NNPC Limited will be incorporated by the Minister of Petroleum, who together with his finance counterparts, will determine NNPC’s assets and liabilities that will be inherited by the new firm.
The new bill reads, “NNPC shall cease to exist after its remaining 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.”
According to Section 53 of the bill, the minister shall “within six months from the commencement of this Act, cause to be incorporated under the Companies and Allied Matters Act, a limited liability company, which shall be called Nigerian National Petroleum Company (NNPC Limited.