Buhari Appoints Steering Committee To Kickstart Implementation Of Petroleum Industry Act

President Muhammadu Buhari on Wednesday appointed a steering committee to oversee the process of implementing the newly signed Petroleum Industry Act.

Buhari had signed the Petroleum Industry Bill into law on Monday which seeks to reform, promote transparency and attract capital flows into the oil and gas sector

The bill comprises five major parts, including Governance and Institutions; Administration; Host Communities Development; Petroleum Industry Framework; and Miscellaneous Provisions comprising 319 clauses and eight schedules.

One of the key recommendations of the bill is the unbundling of the NNPC and a revision of the funding mechanism.

The steering committee is headed by the Honourable Minister of State, Petroleum Resources, Timipre Sylva, Presidential Media Adviser, Femi Adesina, said in a statement on Wednesday.

Other members are Permanent Secretary, Ministry of Petroleum Resources; Group Managing Director, NNPC; Executive Chairman, FIRS; Representative of the Ministry of Justice; Representative of the Ministry of Finance, Budget and National Planning; Senior Special Assistant to the President on Natural Resources, Barrister Olufemi Lijadu as External Legal Adviser.

The Executive Secretary, Petroleum Technology Development Fund, will serve as Head of the Coordinating Secretariat and the Implementation Working Group.

The primary responsibility of the steering committee is to guide the effective and timely implementation of the PIA in the course of transition to the petroleum industry envisaged in the reform program.

It will also ensure that the new institutions created have the full capability to deliver on their mandate under the new legislation.

The committee has 12 months duration for the assignment, and periodic updates will be given to the President.

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari had shortly after the Bill was signed disclosed that the Corporation, within the next six months would be transited to a new company, ‘NNPC Nigeria Limited’ as stated in the Petroleum Industry Act.

Speaking on ‘Arise News Night’ edition, the GMD noted that the provision of the new Act states clearly that the NNPC be transformed to a company that will operate under the Companies and Allied Matters Act.

“The meaning of this is that the company will be another privately owned company in a sense, it will pay taxes, pay royalties and pay dividend to its shareholders.

“This is not the situation today, because the Corporation has no such obligation, this means that it has stall its growth, its development and prosperity, but with the bill, it means that within six months, a new company will be incorporated,” he said.

He further explained that all liabilities, personnel and assets of the NNPC, within the six months period will be transferred to the new company.

“Within 6 months you must incorporate the NNPC Nigeria limited by law, that means once you incorporate, there will automatically be process of transfer of assets, transfer of personnel and many others, the furthest that we can go while doing this is six months,” he added.

According to the GMD, the transition would promote a more efficient oil company, adding that the transition does not only affect NNPC but all institutions under the PIB.

“The government has established a structure and implementation committee to ensure a smooth transition from where we are today, not just NNPC but every institution under the Petroleum Industry Act, and there will be a system and framework that will take care of the transition,” he said.

He further disclosed that with the tremendous growth recorded in the Corporation in the last two years, the financial position of the corporation has moved from a negative position to a positive position, assuring that the company will not declare any loss this year.