Reps to investigate NNPC’s assets/liabilities before transition to NNPC limited

Reps to investigate NNPC's assets/liabilities before transition to NNPC limited

Reps to investigate NNPC’s assets/liabilities before transition to NNPC limited

The House of Representatives has resolved to conduct an investigation to ascertain the assets and liabilities of the Nigerian National Petroleum Corporation (NNPC) ahead of the transition to NNPC limited.

The House also resolved to set up an ad-hoc committee to conduct the probe.

This resolution was sequel to a motion moved by Ibrahim Isiaka (APC, Ogun) during Tuesday’s plenary.

Sections 55 and 56 of the Petroleum Industry Act provides the process of transition from NNPC to NNPC limited and the transfer of the assets and liability of the state-owned oil companies.

The entity was incorporated in September 2021 as mandated by Section 53(1) of the Petroleum Industry Act 2021, which provides that the Minister of Petroleum Resources cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance on the nominal shares of the Company.

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President Muhammadu Buhari had appointed Ifeanyi Ararume, a former senator, as the Chairman of the board of NNPC limited while Mele Kyari and Umar Ajiya are Chief Executive Officer, and Chief Financial Officer, respectively.

However, Mr Buhari, last week, suspended the scheduled inauguration of the board of the NNPC limited without giving a reason for the suspension.

Mr Isiaka said the probe is to ensure a glossary accounting system in the buildup to the transition.

“There is a need to boost investors’ confidence and enhance transparency and efficiency in the supply chain management of the newly established NNPC Ltd owing to the outstanding credit sales and the much-needed revenues by the Federal Government to support annual budgets.”

He asked that committees on finance, petroleum resources (upstream), petroleum resources (downstream) and gas resources should be mandated to conduct the investigation.

However, Mohammed Monguno (APC, Borno) moved an amendment that an ad-hoc committee should investigate the matter.

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The Speaker, Femi Gbajabiamila directed the leader of the House, Ado Doguwa (APC, Kano) to look for a “redundant” lawmaker to chair the ad hoc committee.

When the motion was put to question, the “ayes” had it.

Reps to investigate NNPC’s assets/liabilities before transition to NNPC limited

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