Petroleum: Reps move to transfer assets of defunct NNPC to NNPC Ltd

The House of Representatives’ Ad-hoc Committee to ascertain total inventory, assets, interests and liabilities of the Nigeria National Petroleum Company Ltd says it will meet with the Chief Executive Officer (CEO) of the company.

This is sequel to the Petroleum Industry Act (PIA) assented to by President Muhammadu Buhari.

Rep. Kingsley Chima, Chairman of the committee who presided over the meeting stressed the need to interface with Minister of State for Petroleum Resources and Central Bank governor.

Chima who spoke during the committee’s meeting on Thursday said there was need to also meet with the Minister of Finance, Budget and National Planning.

According to the provisions of Section 53(2-5) of the Petroleum Industry Act PIA, the government of the Federation shall hold full ownership of the NNPC Ltd.

Chima said this would be through the share held by the Federal Ministry of Finance Incorporated and Ministry of Petroleum Incorporated on behalf of the government of the Federation.

“Section 53(5-8) however stipulates government’s intention to set in motion the process of immediate commercialisation and privatisation of the operation and future private ownership of NNPC Ltd.”

“Section 54 of the Act further provides that: “all assets and liabilities of the NNPC will be transferred to NNPC Ltd.,” he said.

Chima stated that the ministers of Petroleum and Finance were saddled with the responsibility of determining the assets, interests and liabilities of NNPC.

He said such assets were to be transferred within 18 months of the PIA coming into effect.

Chima said the committee had requested for detailed information on NNPC assets, interests, liabilities and up-to-date audited reports from the CEO of NNPC Ltd.

He said it had called for yearly audited reports of NNPC from Nigeria Extractive Industries Transparency Initiative (NEITI) with a view to juxtaposing the NNPC reports with that of NEITI.

Chima observed that despite abundant natural endowments, the oil and gas industry had been plagued with corruption, mismanagement, crisis, environmental degradation, lack of refining capacity, among others.

“The decision of the House is in sync with the provisions of sections 88 and 89 of the 1999 constitution of the Federal Republic of Nigeria [as amended).”

“It is also hinged on the provisions of Section 54 of the recently signed Petroleum Industry Act, 2021,” he said.

Chima said the Committee was mandated to ascertain the total inventory, assets, interests and liabilities of NNPC and its subsidiaries before transfer to NNPC Ltd to ensure a glossary accounting system.