The Group Managing Director of the Nigerian National Petroleum Corporation has disclosed that the Corporation, within the next six months would be transited to a new company, ‘NNPC Nigeria Limited’ as stated in the Petroleum Industry Act.
The Petroleum Industry Bill was signed into law by President Muhammadu Buhari on Monday.
Speaking on ‘Arise News Night’ edition on Monday, the GMD noted that the provision of the new Act states clearly that the NNPC be transformed to a company that will operate under the Companies and Allied Matters Act.
“The meaning of this is that the company will be another privately owned company in a sense, it will pay taxes, pay royalties and pay dividend to its shareholders.
“This is not the situation today, because the Corporation has no such obligation, this means that it has stall its growth, its development and prosperity, but with the bill, it means that within six months, a new company will be incorporated,” he said.
He further explained that all liabilities, personnel and assets of the NNPC, within the six months period will be transferred to the new company.
“Within 6 months you must incorporate the NNPC Nigeria limited by law, that means once you incorporate, there will automatically be process of transfer of assets, transfer of personnel and many others, the furthest that we can go while doing this is six months,” he added.
According to the GMD, the transition would promote a more efficient oil company, adding that the transition does not only affect NNPC but all institutions under the PIB.
“The government has established a structure and implementation committee to ensure a smooth transition from where we are today, not just NNPC but every institution under the Petroleum Industry Act, and there will be a system and framework that will take care of the transition,” he said.
He further disclosed that with the tremendous growth recorded in the Corporation in the last two years, the financial position of the corporation has moved from a negative position to a positive position, assuring that the company will not declare any loss this year.
“I am very happy and fulfilled that this company is doing very great today, it’s financial position has moved from a negative position of N800bn in 2018 to less than N2bn in 2019, I can tell you that this company will not declare any loss this year.
“The law has provided that the company will have to transit to a new company, when this company transit, I will consult my family to see if I will have to apply for a job.
“Once the NNPC limited is incorporated, it is the choice of the owners of the company to decide who runs it and it will be my choice to decide if I will apply for a new job,” he said.