The General Managing Director of NNPC, Mele Kyari, who disclosed this while speaking on Arise TV on Monday, said the corporation will be transformed into a private company as specified in the Petroleum Industry Act (PIA).
According to him, all liabilities and assets of the NNPC will be transferred to the new company which would be incorporated under the Company Allied Matters Act (CAMA) to pay taxes and dividends to its shareholders.
“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.
“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.”
Mele Kyari’s comment is coming a day after President Muhammadu Buhari signed into law the controversial Petroleum Industry Bill.