The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari has dropped the big bomb on the corporation and said the NNPC will cease to exist exist around February 2022.
This development would be in the implementation of the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari Monday.
Kyari revealed this Monday while on a discussion with Arise TV, and noted that corporation 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).
Kyari explained that all liabilities and assets of the NNPC will be transferred to the new companies, but 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 means that the company will just be another privately owned company, in a sense,” Kyari said.
“The new company formed out of the NNPC 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.”