Business - Business & Economy - News - July 15, 2021

PIB: Nigerian governors want ownership of NNPC transferred to NSIA

MEDIATRACNET

The governors of the 36 States of the Federation want the proposed ownership structure of the Nigeria National Petroleum Corporation (NNPC) in the draft Petroleum Industry Bill (PIB) currently being harmonised by the National Assembly restructured to accommodate the interest of the three tiers of the government.
At the moment, the draft PIB places the ownership  of the national oil company entirely on the Federal Government.
But at the end of the 32nd teleconference meeting of the Nigerian Governors’ Forum on Wednesday, the governors said they were in full support of the unbundling and commercialization of the NNPC proposed in the draft petroleum industry law.
However, they expressed concern with the provision, which places the ownership of the corporation entirely on the Federal Government to the exclusion of the States and Local Governments.
Given that the NNPC is owned
by the three tiers of government, the NGF noted that the newly incorporated entity in the PIB (NNPC Limited) should be owned by a special purpose vehicle that holds the interest of the three tiers of government in its ownership structure.
Consequently, the NGF said for now the only institution best positioned
to carry out this mandate is the Nigeria Sovereign Investment Authority (NSIA).
The NSIA is an agency of the Federation established under the instrumentation of the NSIA Act of May 2011 with the mandate to manage funds accruing in the excess crude oil revenue account approved in the annual budget.
The NSIA’s mission is to drive the process of sustained economic development for the benefit of all Nigerians through the development of a savings base for the Nigerian people, to enhance the development of Nigeria’s infrastructure, provide stabilisation support in times of economic stress.
Under the NSIA Act, the agency is empowered to receive, manage and invest funds in a diversified portfolio of medium and long term assets on behalf of the the tiers of governments and the Federal Capital Territory, preparatory to the eventual depletion of the country’s hydrocarbon resources.
With the proposal, the NGF wants the NSIA to take over the ownership and management of NNPC and run as a profit-oriented commercial public enterprise capable of declaring profits annually for its investors.
On this amendment as well
as the proposed 3 percent share of oil revenue to host communities in the Niger Delta and the 30 percent share of profit for the exploration
of oil and gas in the Inland basins, the NGF promised to give responses at relevant channels, including the National Assembly and the National Economic Council (NEC).
Also, the Forum said it would take a position on the planned privatization of assets of tkhe Niger Delta Power Holding Company (NDPHC) by the      Sale of Niger Delta Power Holding Company (NDPHC) Assets
The Forum will take a position on the planned privatization of assets of the Niger Delta Power Holding
Company (NDPHC) by the Bureau for Public Enterprise (BPE).
The governors expressed concern that the privatization agency decided to list the company by the Bureau for Public Enterprise (BPE) without due consultation with State governments, which they said were shareholders of the company.
NDPHC is incorporated under the
Companies and Allied Matters Act as a private limited liability company with shareholding fully subscribed
to by the Federal, State and Local Governments with a mandate to manage National Integrated Power
Projects (NIPP) across the country.
On the proposed amendments to some sections of the Principal Stamp Duties Act, the Nigerian Postal Service Bill, 2021 and Stamp Duties Collection, the NGF expressed concern that the Senate was seeking to remove the powers to administer and collect stamp duties from the
relevant tax authorities, the Federal Inland Revenue Service or State Internal Revenue Service, and transferred to the Nigeria Postal Service.
The Forum said the provisions of Section 163 of the 1999 Constitution requiring Stamp Duties on transactions between a company and an individual should be
paid to the FIRS and returned to the State of derivation.
The Forum said it has resolved to engage with the relevant committees in the National Assembly on the matter.

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