Finance Minister Sign Off Transfer Of Assets To NNPC Ltd

As the country awaits the formal unveiling of the Nigerian National Petroleum Company Ltd on July 19, President Muhammadu Buhari who is himself the Minister of Petroleum Resources, and the Minister of Finance Budget and National Planning, Mrs. Zainab Ahmed have signed off the Transfer of Assets from the Nigerian National Petroleum Corporation to the NNPC Ltd, THE WHISTLER can report.

THE WHISTLER authoritatively gathered that the signing off by the President and the Minister of Finance effectively means that all such assets, interests, and liabilities of the Corporation have been transferred to NNPC Limited in line with the provisions of the Petroleum Industry Act.

It was learned, by this Website that the President appended his signature on the instrument of transfer last week in preparation for the formal unveiling of the NNPC Ltd on July 19.

This is in line with Section 54 of the PIA which stated that Bonds, Hypathecations, Securities, Deeds, Contracts, Instruments, Documents, and working arrangements with regards to assets, interests, or liabilities transferred to NNPC Limited or any of its subsidiaries under subsection (1) will be effective and enforceable against or in favour of NNPC Limited.

Specifically, Section 54 of the Act stated that “The Minister (of Petroleum Resources) and the Minister of Finance shall within 18 months of the effective date determine the assets, interest’s, and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the Minister shall cause such assets, interest’s and liabilities to be transferred to NNPC Limited.

“Assets, interests, and liabilities of NNPC not transferred to NNPC Limited or its subsidiary under subsection (1), shall remain the assets. interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 (1) of this Act, the Minister, the Minister of Finance and the Attorney-General of the Federation shall develop a framework for the payment of the liabilities not transferred to NNPC Limited and if such determination of which assets, interests, and liabilities to be transferred has not been concluded within the stipulated period of 18 months. all the assets, interests, and liabilities of NNPC are deemed to be transferred to NNPC Limited after 18 months from the effective date.

“NNPC shall cease to exist after its remaining assets, interests and liabilities other than its assets, interests and liabilities are transferred to NNPC. Limited of its subsidiaries under subsection (1) shall have been extinguished or transferred to the Government.”

The legislation added that any pending action of a proceeding brought by or against NNPC before the transfer date about assets, interests or liabilities transferred to NNPC Limited under subsection (1) may be enforced or continued by or against NNPC Limited as the successor of NNPC.

The NNPC LTD on July 1, fully transformed into a Company whose operations will be regulated under the Companies and Allied Matters Act following the implementation of the Petroleum Industry Act.

The Corporate Affairs Commission had on September 21 last year, completed the incorporation of the NNPC Ltd by the provisions of the Petroleum Industry Act 2021.

The PIA was signed into law by President Muhammadu Buhari on 16th August 2021, following its passage by the National Assembly in July of the same year. With the registration by the CAC, the NNPC Ltd was floated with an initial capital of N200bn making history as the company with the highest share capital in the country.

Between when the PIA was signed into law in August last year and now, the management of the NNPC Ltd had taken proactive steps to prepare it for the take-off as a CAMA company.

 

 

Culled from THE WHISTLER