BusinessLatest News

PIB To Split NNPC Into Three Agencies, See Their Functions

The proposed Petroleum Industry Bill (PIB) 2020 would split the Nigerian National Petroleum Corporation (NNPC) into three agencies when passed and signed into law by President Muhammadu Buhari.

The names of three agencies to be created are: the Nigerian Upstream Regulatory Commission (NURC); the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPCL).

As stated in the bill, the NURC shall be responsible for the technical and commercial regulation of upstream petroleum operations and ensure compliance with all applicable laws and regulations governing the upstream petroleum operations.

The Commission would ensure that such operations are carried out in a manner to minimise waste and achieve optimal government revenues among other functions.

The NMDPRA, according to the bill, shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry.

The bill explained that the functions of the NMDPRA would be limited to midstream and downstream petroleum operations in the petroleum industry.

NNPC

It would ensure efficient, safe, effective and sustainable infrastructural development of midstream and downstream petroleum operations.

The agency is also expected to advise government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks.

The bill stated that the NNPC Limited must be incorporated six months after the commencement of the Act by the minister under the Companies and Allied Matters Act, as a limited liability company.

It stated that the minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted.

The bill stated that ownership of all shares in NNPC Limited shall be vested in the Federal Government at incorporation and held by the Ministry of Finance Incorporated on behalf of the government.

It added, “The NNPC Limited and any of its subsidiaries shall conduct their affairs on a commercial basis without recourse to government funds and their memorandum and articles of association shall state the restrictions.”

The bill further indicated that the cost of winding down the assets, interests and liabilities of NNPC shall be borne by the Federal Government.

Help Aledeh News deliver the independent journalism Nigeria and the world need. Support us by making a contribution. Your donation allows Aledeh News to be completely independent. But it also means this online platform is only possible because of the support of readers like you. Support Now!
Tags

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close
Close Bitnami banner
Bitnami