The Nigerian National Petroleum Corporation (NNPC) is set to adopt a new identity in the coming months.
Following the passage of the Petroleum Industry Bill (PIB) on Thursday by the National Assembly and the expected signing by President Muhammadu Buhari, NNPC will become an incorporated entity in six months.
This is according to part five of a draft copy of the bill.
It reads in part: “the Minister of Petroleum shall within 6 months from the commencement of this Act, cause to be incorporated under the Companies and Allied Matters Act, a limited Company Limited liability company, which shall be called Nigerian National Petroleum Company Limited (NNPC Limited).”
The Petroleum Minister is expected at the incorporation of NNPC Limited, to 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 NNPC Limited and the Government shall subscribe and pay cash for the shares.
According to the bill, Ownership of all shares in NNPC Limited shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation.
Shares held by the Government in NNPC Limited are also not transferable including by way of sale, assignment, mortgage, or pledge unless approved by the Government and endorsed by the National Economic Council on behalf of the Federation.
The incorporated joint venture companies shall not be subject to the provisions of the Fiscal Responsibility Act and the Public Procurement Act, according to the PIB.
