The Nigerian National Petroleum Corporation has the next six months to carry out operations; afterwards, it will cease to exist.
Group Managing Director of the corporation, Mele Kyari, disclosed this in an interview.
Mr. Kyari said the development is in line with the recently signing into law of the Petroleum Industry Act.
The NNPC boss said the corporation would be transformed into a private company that would pay taxes and dividends to its shareholders.
He added that though all assets and liabilities of the NNPC is expected to be transferred to the new company, Mr. Kyari said some toxic assets of the corporation may not be transferred.
“Coming back to the NNPC, the provision of the law clearly states that the corporation will be transformed into a CAMA company. This meaning of this is that the company will just be another privately owned company, in a sense.
“This company will pay taxes, royalties and dividends to its shareholders. This isn’t the situation today because the corporation has no such obligation. This has stalled its development, its growth and its prosperity.
“According to the new Petroleum Industry Act, a new company will be incorporated within six months . That means all assets and liabilities of the NNPC will be transferred to the new company.
“Not all of them, by the way. The bill is very clear. Some toxic assets of the corporation may not be transferred. The federation or shareholders can decide to keep some of the assets and leave some with the corporation.
“Therefore, you are going to have a much more efficient, much more slimmer, much more commercial national oil company.”