PIB: Governors criticize NNPC’s ownership structure

 PIB: Governors criticize NNPC’s ownership structure

The Nigerian Governors Forum (NGF) has raised concerns over the proposed ownership structure of the Nigerian National Petroleum Corporation (NNPC), as defined in the Petroleum Industry Bill (PIB).

The governors, who said they support the unbundling and commercialisation of the NNPC, faulted the part of the legislation that places its ownership on the federal government.

The position of the Governors was contained in a communique issued at the end of its 35th teleconference meeting on Wednesday, and signed by the chairman of the forum, Kayode Fayemi.

The PIB, recently passed by the National Assembly, seeks to create the Nigerian National Petroleum Corporation Limited, a corporate entity incorporated under the Companies and Allied Matters Act.

It provides that the ownership of all shares in the incorporated NNPC shall be vested with the government, and the Ministries of Finance and Petroleum shall hold the shares on behalf of the government. The shares are not transferable.

The NGF proposed that given that the corporation is owned by the three tiers of government, the newly incorporated entity (NNPC Limited) should be owned by a vehicle that “holds the interest of the three tiers of government” the institution that is currently positioned to carry out this mandate is the Nigeria Sovereign Investment Authority (NSIA).

The proposed three per cent share of oil revenue to host communities and 30 per cent share of profit for the exploration of oil and gas in the basins will be responded to at relevant channels including the National Assembly and the National Economic Council (NEC), he said.

The governors also called for consensual action to prevent a third wave of COVID-19 in the country. This was a sequel to an update from the Lagos State Governor, Babajide Sanwo-olu.

They called on all state governors to resuscitate their COVID-19 protocols and collaborate with the Nigeria Centre for Disease Control (NCDC) to take appropriate and immediate actions to flatten the transmission curve.

The NGF also discussed Executive Order 10 and Financial Autonomy for the State Legislature and Judiciary.

They endorsed a common template for the implementation of the Memorandum of Action signed with the Judiciary Staff Union of Nigeria (JUSUN) and the Parliamentary Staff Association of Nigeria (PASUN) on the implementation of financial autonomy for the State legislature and judiciary.

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