OrderPaperToday– The House of Representatives Ad-hoc Committee saddled with the mandate of ascertaining the total inventory, assets, interests, and liabilities of the Nigerian National Petroleum Company Limited, has unveiled plans to meet with the Chief Executive Officer of NNPC Limited in the coming days.
Committee Chairman, Kingsley Uju Chima (APC, Imo) who presided over the meeting, stressed the necessity to interface with the Minister of State for Petroleum Resources, Governor of Central Bank of Nigeria (CBN), and 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 Limited with the shares 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 the government’s intention to set in motion, the process of immediate commercialisation and privatisation of the operation and future private ownership of NNPC Limited.
Section 54 of the Act further provides that: “all assets and liabilities of the NNPC will be transferred to NNPC Limited. The Minister of Petroleum and Finance are saddled with the responsibility of determining the assets, interests, and liabilities of NNPC which are to be transferred within 18 months of the PIA coming into effect.”
In its resolution, the Committee requested detailed information on NNPC assets, interests, liabilities, and up-to-date audited reports from the CEO of NNPC Limited. This is as it further resolved to request yearly audited reports of NNPC from Nigeria Extractive Industries Transparency Initiative (NEITI) with a view to juxtaposing the NNPC audited reports with that of NEITI.

The committee has eight weeks to report back to the House on the status of the NNPC and its subsidiaries in order to ensure a glossary accounting system before transfer to the NNPC Limited.

What you should know about the Petroleum Industry Act (PIA):

The Petroleum Industry Act, 2021 is an Act of Parliament enacted to provide legal governance, regulatory and fiscal framework for Nigeria’s oil and gas industry.

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The Act is categorised into 5 chapters, 319 Sections, and 8 schedules and was assented into law by President Muhammadu Buhari on August 16, 2021.

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