Corporation, NNPC, Dr Maikanti Baru, has warned that the split of the
corporation into two entities could generate some tension between the
unions in the corporation if not properly managed.
Baru noted that the Petroleum Industry Governance Bill, recently
passed by the National Assembly, required the minister to within six
months after its enactment take necessary steps to incorporate the
entities, namely the Nigerian Petroleum Assets Management Company and
the Nigeria Petroleum Company, as companies limited by shares to be
vested with certain liabilities and assets of the NNPC.
"The current National Assembly identified the bogus packaging of the
Petroleum Industry Bill as a single legal instrument as a major
hindrance to its passage and decided to present a number of smaller,
more detailed bills," he said in Lagos at the annual conference of the
Association of Energy Correspondents of Nigeria.
The PIB was split into four parts – PIGB, Petroleum Industry
Administration Bill, Petroleum Industry Fiscal Bill and Petroleum Host
Community Bill.
According to him, the PIGB seeks to create an avenue for better
investment opportunities, make the petroleum sector more transparent
and ensure better accountability of revenue derived from the nation's
vast oil and gas resources.
On the split of the NNPC, Baru said, "Engagement with staff and
consultation with individuals and establishment with institutional
memory of how the issue of staff movement was handled when the DPR was
expunged from the NNPC is necessary."
He noted that the initial shares of the NNPC would be held by the
Ministry of Petroleum Incorporated (40 per cent), the Ministry of
Finance Incorporated (40 per cent) and the Bureau of Public
Enterprises (20 per cent).
The GMD added, "However, 10 per cent and an additional 30 per cent of
the shares of the company shall be floated on the Nigerian Stock
Exchange within five yearsand 10 years from incorporation,
respectively.
"On the issue of divestment of 40 per cent of the NNPC shares to the
Nigerian Stock Exchange, there is a need for clarity on the process of
the divestment and the steps should be clearly provided in the law.
"There is a need for clarity regarding the nature of the NNPC
liability to be transferred to the Nigeria Petroleum Liability
Management Company, asides from outstanding pension obligations of the
DPR. There is a need to provide adequate clarity on the type and
nature of liability to be inherited and the process for the settlement
of such liability."
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