Mele Kyari, the group managing director, of the company, in his avowed openness and drive for transparency, had made proactive moves in preparation for the July 1 take-off as a CAMA company.
The road map includes valuation of the assets and liabilities, development of corporate governance frameworks, rebranding of NNPC to NNPC Ltd and change management. This, he noted, will enable the company to effectively maximize returns on investment for the 200 million Nigerians, ensure returns for shareholders and pay taxes to the government.
“What happened in the last few days is simply a transformation of activities and transformation of the environment for doing business, making our country very competitive.” “What is logic to us is to bring us abound with the best of physical environment that is available in the world, bringing us to a place where also structure of regulation that is also in line with best practices in the world clearly separating the upstream from the midstream and downstream so that our focus can come back to the part of the industry that will surely be the hub.
On expected changes in the corporation’s assets after the PIA with regards to the incorporation of NNPC as a company under the CAMA, Kyari, reiterated that all assets and liabilities of the NNPC will be transferred to the new company. Where there is an impact of its operations on prices of petroleum products, the government will be expected to determine how the differential will be managed. What this implies is that impact of prices will not automatically be transferred to the citizens as the government remains committed to providing energy security and sustaining the economy.
“This is very simple. This company will pay taxes and royalties, which are revenues that accrue to the federation. So, every part of this country and every sub national institution or government will benefit from it. The NNPC’s $5 billion corporate finance commitment from Afreximbank is seen by oil industry stakeholders as a dividend of the Petroleum Industry Act and the incorporation of the NNPC as a limited liability company.
Going by the projections of Kyari, the NNPC will soon emerge the fifth largest gas producing in the world given that the new legislation has provided business opportunities that will enable the NNPC earn more revenue for the country and attract foreign direct investment into the Nigerian energy sector.
It is also involved in the expansion and integration of domestic/regional power grids and growing the domestic gas markets through Autogas/Compressed Natural Gas/Liquified Petroleum Gas to power vehicles. “We have struggled to have the right fiscal space not just for 20 years but since 1967. As you may be aware, the Petroleum Profit Tax Act 1967, the Petroleum Act 1969, there wasn’t any significant change from what you have from the Petroleum Tax Act and the Petroleum Act.
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