Buhari submits PIB to National Assembly, scraps NNPC, PPPRA in new bill

The President , Major General Muhammadu Buhari ( retd . ) , has transmitted the much awaited Petroleum Industry Bill 2020 to the National Assembly and has proposed the creation of the Nigerian National Petroleum Company Limited .

The bill , which was sighted by our correspondent on Sunday , also proposes the scrapping of the Nigerian National Petroleum Corporation and the Petroleum Products Pricing Regulatory Agency .

The bill states that the NNPC Limited will be incorporated by the Minister of Petroleum , who together with his finance counterparts, will determine NNPC ’ s assets and liabilities that will be inherited by the new firm .

Section 54 ( 1 , 2 and 3 )) reads in part , “ The Minister ( of Petroleum ) and the Minister of Finance shall 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 of this section shall remain the assets , interests and liabilities of NNPC until they become extinguished or transferred to the government .

“ NNPC shall cease to exist after its remaining assets , interests and liabilities other than its interests , assets , and liabilities transferred to NNPC Limited or its subsidiaries under subsection 1 of this section shall have been extinguished or transferred to the government . ”

According to Section 53 of the bill, the minister shall “ within six months from the commencement of this Act , cause to be incorporated under the Companies and Allied Matters Act, a limited liability company , which shall be called Nigerian National Petroleum Company ( NNPC Limited ) .

“ The minister shall be 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 which shall form the initial paid - up share capital of the NNPC Limited and the government shall subscribe and pay cash for the shares .

“ Ownership of all shares in NNPC Limited shall be vested in the government at incorporation and held by the Ministry of Finance incorporated on behalf of the government . ”

The bill also proposes the establishment of an agency known as the Nigerian Upstream Regulatory Commission which will be responsible for the technical and commercial regulation of upstream petroleum operations .

Section 4 of the bill states in part , “ There is established the Nigerian Upstream Regulatory Commission ( the commission) which shall be a body corporate with perpetual succession and a common seal .

“ The commission shall have the power to acquire , hold and dispose of property , sue and be sued in its own time . The commission shall be responsible for the technical and commercial regulation of upstream petroleum operations . ”

The proposed law also recommends the creation of the Nigerian Midstream and Downstream Petroleum Regulatory Authority known as ‘ The Authority ’ .

Section 29 of the bill states in part , “ There is established the Nigerian Midstream and Downstream Petroleum Regulatory Authority ( the Authority ) which is a body corporate with perpetual succession and a common seal .

“ The Authority shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry. ”