Nigeria’s Petroleum Industry Governance Bill (PIGB) 2017 proposes the incorporation of three commercial entities including the Nigeria Petroleum Assets Management Company, National Petroleum Company and the Nigeria Petroleum Liability Management Company.
The bill, passed by the Senate, the Upper Chamber of Nigeria’s Bicameral House of Legislature, on May 25, 2017, seeks, among other things, to restructure the Nigeria National Petroleum Corporationby splitting the assets and liabilities of the corporation into two new commercial entities, namely the Nigeria Petroleum Assets Management Company and the National Petroleum Company which will result, mutatis mutandis, in the repeal of the Nigerian National Petroleum Corporation Act CAP N123, Laws of the Federation of Nigeria, 2004, Nigerian National Petroleum Corporation (Projects) Act CAP N124 Laws of the Federation of Nigeria, 2004 and Nigerian National Petroleum Corporation Amendment Act N123.
The Nigeria Petroleum Liabilities Management Company is proposed as a limited liability company that has the legal capacity to hold assets including shares in the Nigeria Petroleum Assets Management Company and the National Petroleum Company on behalf of the Government of the Federal Republic of Nigeria.
Funding of the Nigeria Petroleum Assets Management Company shall be by appropriation through the National Assembly for the initial capitalisation and subsequent financing of the company. The Federal Republic of Nigeria Appropriation Act 2016 provides for the funding of NNPC through appropriation.
Part of the recurrent and capital expenditure components of the Appropriation Act 2016 which shall be received by the Nigeria Petroleum Assets Management Company from the NNPC budget aforesaid shall be adequate to provide for the financing of the establishment of the Nigeria Petroleum Assets Management Company. Therefore, no further financial requirements are needed for the establishment of the Nigeria Petroleum Assets Management Company.