The Nigeria National Petroleum Corporation”s ( NNPC), Group Managing Director, (GMD) Mallam Mele Kyari has said that the new commercialized NNPC will over a time sell some of its shares in the capital market.
Kyari explained that the Petroleum Industry Act (PIA) has for now bequeatted the share holdings of the new NNPC in trust to the Federal Ministry of Petroleum Resources and the Federal Ministry of Finance on behalf of the people and government of Nigerians.
The NNPC boss who was speaking on NTA’s ‘Good Morning Nigeria’ said with time government will reduce its equity share in the new company to allow NNPC to be publicly quoted for Nigerians to buy in the new NNPC
Kyari also explained the role and status of all NNPC subsidiaries. According to him some of the subsidiaries will seize to exist as long as they do not fit into the new NNPC. Others likely to be mergered.
Ultimately all the subsidiaries will operate to make profits and pay taxes and royalties.
“This is very simple. These companies will pay taxes and royalties, which are revenues that accrue to the federation. So every part of this country and every subnational institution or government will benefit from it.
“Secondly, these companies will pay company income tax that also comes to the federation for the benefit of all. So, what is different is that these companies will now have profit to make and declare dividend, which will be decided by the board of directors of the new NNP” Kyari said
According to him, the whole concept of host community trust fund was created by the executive and that the fund would be completely managed by host communities of oil installations.
Kyari noted that the country had failed in ensuring that host communities had stakes in the continuous operation of oil assets in their various areas.
“The very reason that they don’t have a stake is that till now, we have failed as a system to make sure that those values that should have come and many other interventions did get to them,” he stated.
Kyari said that changing, adding that more importantly, the PIA would consolidate interventions and make them work for the communities.