Government can sell NNPC shares to individuals – Kyari

Written by on August 25, 2021

There is provision in the Petroleum Industry Act that gives room for individuals to acquire stakes in the new Nigerian National Petroleum Company Limited, the Group Managing Director, NNPC, Mele Kyari has said.

Kyari stated that though this would not happen immediately, the major shareholders of the new NNPC were allowed in the PIA to sell shares of the national oil firm to private individuals.

The NNPC boss, who disclosed this during a live television  in Abuja, also explained that the allocation of three per cent oil companies operating expense to host communities could be higher than the 30 per cent profit of oil and gas for frontier exploration.

On the transformation of NNPC from a statutory corporation to a limited liability company, Kyari said the new oil firm would have government shareholders to be represented by the ministers of finance and petroleum resources.

The NNPC boss added, “The intension at the very onset is not to go to that step but there is provision in the law that allows us ultimately to sell shares of this company.”

Kyari explained that NNPC Limited would serve as a holding company for all its subsidiaries, adding that the subsidiaries would operate on their own without encumbrances from the government.

On what would be the stakes of subnational governments in the new NNPC, Kyari said the royalties and taxes to be paid by the oil firm would get to all tiers of government.

Kyari noted that the country had failed in ensuring that hosting communities had stakes in the continuous operation of oil assets in their various areas.

Credit: Punch

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