The Minister of State for Petroleum Resources, Timipre Sylva, has disclosed that the Petroleum Industry Act 2022 granted the Nigerian National Petroleum Company Limited full autonomy over its finances.
Unlike many other government owned firms, activities of the NNPCL are exempted from the scrutiny of the Fiscal Responsibility Act, Public Procurement Act and the Treasury Single Account.
The Minister stated these while speaking at the Final Cutover of the corporation to NNPC limited in Abuja on Friday.
Similarly, the Group Chief Executive Officer of NNPCL, Mele Kyari, said the firm now distributes about 65 million litres of Premium Motor Spirit, otherwise known as petrol, across the country daily.
The new figure is 5 million litre higher than the earlier estimation of 60 million litres per day given by the company in 2021.
Kyari also revealed that the NNPCL pays N202 million as subsidies on every litre of petrol consumed in the country, stressing that cumulatively over N400 billion is spent on petrol subsidy monthly.
He however assured that the firm would continue to meet its obligations by providing PMS for Nigeria, despite the strain on its cash flow due to the subsidy payment.
While applauding President Muhammadu Buhari for assenting the Petroleum Industry Bill into Law, and giving the task of heading the committee of the Implementation Framework, the Minister described the ceremony marking the final except of NNPCL from a corporation to a private limited firm as an epoch-making occasion.
“The crystallization of a 20-year petroleum industry reform journey calls for accolades and celebration.
“However, the birthing of this law is only a means to an end, the end thereof being the enthronement of a vibrant, sustainable, efficient and investment-friendly petroleum industry which will improve our revenue base, create jobs and support our economic diversification agenda.
“To get to this desired end, deliberate effort must be made to implement the law in a manner that best achieves the stated objectives in line with the yearnings and aspirations of Nigerians whose lives will be impacted by the consequences of our decisions and actions.
“As part of the commitment to achieve a viable National Energy Company, the PIA put a long stop date of 18th months from the effective date of the Act as the timeline within which full transfer of assets, interest and liabilities must be completed. It is indeed fulfilling for me as the Chairman of the PIA Implementing Steering Committee to cross the 16th of February 2023 with full sense of fulfillment that the Nigerian National Petroleum Corporation ceases to exist (as per section 54(3)), thereby ushering in a new era of value creation for the common good of all Nigerians.
“Today, the provisions of Section 54 (3) of the PIA have been fulfilled,” he said
Expatiating on the autonomy of NNPCL, Sylva said, “The PIA empowered NNPC Limited to operate like every private company in Nigeria with exemption from the Fiscal Responsibility Act, Public Procurement Act and TSA in order ensure there are no excuses for failure.
“In return for this empowerment the PIA expects a strong commercially oriented National Energy company with an obligation to operate profitably and deliver dividends to shareholders
“NNPC Limited is positioned to lead Africa’s gradual transition to new energy, by deepening natural gas production to create low-carbon alternatives and change the story of energy poverty at home and around the world,” he stressed.
The Minister commended members of the PIA Implementation Steering Committee for their contributions and reassured all Nigerians of the team’s full commitment to the transformation of the petroleum industry.
Sylva challenged members of the committee and management of NNPCL to unlock the potentials of the industry.
“Nigerians and our foreign stakeholders are watching and waiting, and we cannot afford to let them or ourselves down. We must do all that it takes to deliver on this assignment in a manner that best achieves our collective vision for bringing the anticipated gains to the country,” Sylva stated.
SOURCE: thepointng.com