Nigeria: House Of Rep Ad-Hoc Committee Is Set To Transfer Assets Of Defunct NNPC

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Kingsley Chima, chairman, house of representatives ad-hoc committee, says the committee is working to finalise the transfer of assets of the defunct state-owned oil firm to the new Nigeria National Petroleum Company (NNPC) Limited.

The committee is to ascertain the total inventory, assets, interests and liabilities of NNPC in line with the Petroleum Industry Act (PIA).

Chima said the committee had asked the NNPC to tender its yearly audited reports to verify with the Nigeria Extractive Industries Transparency Initiative (NEITI) report.

He added that the oil and gas industry had been plagued with corruption, mismanagement, crisis, environmental degradation, lack of refining capacity, among others.

“We requested for detailed information on NNPC assets, interests, liabilities and up-to-date audited reports from the CEO of NNPC Ltd,” Chima said.
“The decision of the House is in sync with the provisions of sections 88 and 89 of the 1999 constitution of the Federal Republic of Nigeria (as amended).

The committee chairman further said it would be needful to meet with relevant stakeholders to ensure the successful transfer of the assets.

“There is a need to interface with the minister of state for petroleum resources and Central Bank governor and also the minister of finance, budget and national planning,” Chima added.

“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 Ltd.

“The share 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 Ltd.

“Section 54 of the Act further provides that: “all assets and liabilities of the NNPC will be transferred to NNPC Ltd.”

– The Cable

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