Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) has disclosed that the oil corporation will cease to be owned by the Federal Government within six months.
Kyari made this known on Monday, August 16, in an interview on Arise TV.
The transition of the corporation according Kyari is in line with the the Petroleum Industry Act (PIA).
One of the benefits mentioned by the GMD is that the corporation when it finally becomes privately owned is it will be able to pay taxes to the Federal Government as well payment of dividends to its shareholders.
READ ALSO: NNPC to declare first dividend to Nigerians soon – Kyari
However toxic assets of the corporation may still be with the government, the GMD noted.
He said, “Coming back to the NNPC, the provision of the law clearly states that the corporation will be transformed into a CAMA company. This meaning of this is that the company will just be another privately owned company, in a sense.
“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.”
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