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Petroleum Industry Act: NNPC to be incorporated as private company under the Company Allied Matters Act (CAMA) in six months — Kyari

…NNPC will pay taxes and dividends to its shareholders like other companies

Mele Kyari

 

…All the liabilities and assets of the NNPC will be transferred to the new company. Some toxic assets may be excluded

Aftermath of the presidential assent given the Petroleum Industry Bill, the Nigerian National Petroleum Corporation (NNPC) is to wind down as a state run enterprise and transform into a private company in six months.

By its new status, NNPC will pay taxes and dividends to its shareholders like other companies.

Malam Mele Kyari, the Group Managing Director of the corporation gave the indication while featuring on Arise TV programme.

According to him, the new company will be incorporated under the Company Allied Matters Act (CAMA).

Persecondnews recalls that on August 16, 2021 President Muhammadu Buhari has assented to the PIB.

“All the liabilities and assets of the NNPC will be transferred to the new company. 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 meaning of this is that the company will just be another privately owned company, in a sense.

“This company 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,” Kyari said.

Still shedding more light on the PIB Act, the NNPC boss explained:”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.”

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Written by Per Second News

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