Buhari introduces PIB in the National Assembly, repeals NNPC, PPPRA in new bill

The President, Major General Muhammad Mohammad Bu Buhari (R), has passed the much-awaited Petroleum Industry Bill 2020 in the National Assembly and proposed the establishment of the Nigeria National Petroleum Company Limited.


Buhari introduces PIB in the National Assembly, repeals NNPC, PPPRA in new bill

On Sunday, our correspondent saw the bill, which also calls for the abolition of Nigeria's National Petroleum Corporation and the regulatory agency that sets the prices of petroleum products.


The bill states that NNPC Limited will be added’ by the Minister of Petroleum, who will work with his financial counterparts to determine the assets and liabilities of NNPC to be inherited by the new firm.


Section 54 (1, 2 and 3)) reads, "The Minister (Petroleum) and the Minister of Finance shall determine the assets, interests and liabilities of the NNPC so that they may be a part of the NNPC Limited or its subsidiaries." After identification, the Minister will transfer such assets, interests and liabilities to NNPC Limited.


NNPC's assets, interests and liabilities are not transferred’ to NNPC Limited or its subsidiary under subsection 1 of this section unless they are extinguished or transferred to the Government, NNPC's assets, Interests and obligations will remain.


NNPC shall transfer its remaining assets, interests and liabilities under section 1 to its interests, assets and liabilities to NNPC Limited or its subsidiaries under section 1 of this section. Or it will be transferred’ to the government.


According to section 53 of the bill, the Minister said, “Within six months of the commencement of this Act, the Companies and Allied Matters Act will result in the merger of a limited liability company under the National Petroleum Company of Nigeria (NNPC Limited) Will be called.).


The Minister will be on the involvement of NNPC Limited, consult the Finance Minister to determine the number of shares allotted and the nominal value which will make the initial payment share capital of NNPC Limited and the government its Will subscribe and pay cash for the shares.


"The ownership of all the shares in NNPC Limited will be vested in the Government and the Ministry of Finance will be vested in the Government.


The bill also proposes the establishment of an agency called the Nigeria Upstream Regulatory Commission, which will be responsible for the technical and commercial management of upstream petroleum operations.


Section 4 of the bill partially states, "There is a Nigeria Upstream Regulatory Commission (CRO) set up which will be a permanent successor and joint seal body corporate."


"The commission will have the power to acquire, seize and settle property, sue and prosecute in its own time. It will be responsible for the technical and commercial management of petroleum operations.


The proposed law also calls for the creation of Nigeria's Midstream and Downstream Petroleum Regulatory Authority, also known as the Authority.


Section 29 of the bill states in part, "Nigeria's Midstream and Downstream Petroleum Regulatory Authority (NERA) has been established there as a body corporate which is a permanent entity and a common seal."


"The Authority will be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry."


The new bill technically abolishes the PPPRA with the creation of new agencies that will now perform the functions of the PPRA.


Efforts to reform the oil industry date back to two decades ago, when then-President Olusegun Obasanjo inaugurated the Oil and Gas Reform Enforcement Committee in April 2000. The committee was directed’ to review and streamline all existing petroleum laws and formulate a comprehensive regulation. Framework for industry.


The project was continued’ by the administration of President Umaru Yar’Adua and in September 2008, the PIB was introduced’ in the Sixth National Assembly. But the bill stalled on disagreements between international oil companies, host parties and the federation over oil profits. Nigeria Extractive Industries Transparency Initiative


In July 2012, President Goodluck Jonathan's administration sent a revised version of the PIB to the Seventh Assembly, but it suffered the same fate as the previous legislature. The House of Representatives only approved it at the end of his term.


Global crude oil prices fell from $115 per barrel in mid-2014 to 28pb in January 2016, and delays in approving the PIB to worsen the state of the industry. It has also faced regulatory uncertainty.


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