By Fola James
The Nigerian National Petroleum Corporation, NNPC has been scrapped in the new Petroleum Industry Governance Bill, PIG transmitted to the National Assembly by President Muhammadu Buhari.
The PIG had suffered setbacks in the past after the executive and NASS failed to agree on modalities, of the bill, which some Nigerians believe is capable of turning around the nation’s oil sector around.
President Buhari refused to sign the PIG version passed by the eight NASS over some minor disagreement.
The two arms of government are expected to iron out the differences in the new bill in which the Petroleum Products Pricing Regulatory Agenc, PPPRA is also expected to be scrapped.
According to the PIG Bill 2020 now in possession of the both the Senate and House of Representatives, the presidency seeks to replace the NNPC with the Nigerian National Petroleum Company Limited.
Section 54 of the Bill says “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.”
While Section 53 of the bill, the minister of Petroleum to within “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).
“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.”
Under the new regime, new agencies are to be established to carry out the PPPRA’s functions, the federal government said.
Former President, Olusegun Obasanjo administration started the efforts to reform the nation’s oil sector after it inaugurated the Oil and Gas Reform Implementation Committee in April 2000, which later came up with the framework now known as PIG.
