Ahead of July 19 formal unveiling of the Nigerian National Petroleum Company Limited (NNPC), President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources, and the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, have signed the transfer of assets documents from NNPC as a Corporation to the Limited version created by the Petroleum Industry Act (PIA).
With this move, the NNPC Limited has completely shed off its former toga and now wears the new look and operations of a limited liability company. It also means that all assets, interests and liabilities of the Corporation have been transferred to NNPC Limited.
The instrument of transfer was signed off recently, Daily Sun learnt.
Reacting to the move, the NNPC GMD assured local and foreign investors that the new entity that would be regulated in line with the provisions of the Companies and Allied Matters Act, will position it as a partner of choice to all oil and gas companies globally.
The Corporate Affairs Commission had on September 21 last year completed the incorporation of the NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.
Flowing from the PIA, the NNPC boss said one of the things that will be different as the NNPC transitions is that it is expected to become a commercially-oriented and profit-driven national petroleum company that would be the envy of all players in the sector.
Section 54 of the PIA states that that Bonds, Hypathecations, Securities, Deeds, Contracts, Instruments, Documents and working arrangements with regards to assets, interests or liabilities transferred to NNPC Limited or any of its subsidiary under subsection (1) will be effective and enforceable against or in favour of NNPC Limited.
Specifically, Section 54 of the Act stated that “The Minister (of Petroleum Resources) and the Minister of Finance shall within 18 months of the effective date determine the assets, interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the Minister shall cause such assets, interests and liabilities to be transferred to NNPC Limited.
“Assets, interests and liabilities of NNPC not transferred to NNPC Limited or its subsidiary under subsection (1), shall remain the assets. interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 (1) of this Act, the Minister, the Minister of Finance and the Attorney-General of the Federation shall develop a framework for the payment of the liabilities not transferred to NNPC Limited and if such determination of which assets, interests and liabilities to be transferred has not been concluded within the stipulated period of 18 months.