Experts, yesterday, expressed mixed reactions as President
In his directive, the President also named Senator Ifeanyi Ararume as NNPC Limited Board Chairman, with Mele Kolo Kyari and Umar I.
A statement by Special Adviser to the President on Media and Publicity,
Adeshina explained that "this is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of
"The Group Managing Director of the NNPC, Mr Mele Kolo Kyari, has, therefore, been directed to take necessary steps to ensure that the incorporation of the
"Also, by the power vested in him under Section 59(2) of the PIA 2021,
"Chairman of the Board is Senator Ifeanyi Ararume, while Mele Kolo Kyari and Umar I.
"Other Board members are; Dr
However, reacting to the development, Professor Omowumi Iledare, the
"The President has power to appoint as long as the government owns 100 per cent. Government, however, is defined in PIA glossary as the federal government. But the shares by
"My immediate reaction is simple. This looks more like a political board. It is a reappointment of those that are currently on the NNPC Board apart, perhaps, from Araraume.
"However, as long as investors have confidence in the new Board, We are good. The likelihood is very low. So it seems government has made up its mind to continue to fund NNPC.
"Time will tell. We can beg to take a clue from these appointments for the other Boards as documented in PIA Section 59. We should also pay attention to paragraph 59(f), in case there is room for further cerebral dialogue.
"First, where are the Articles of Incorporation of the new
"Second, the core objective of PIA with respect to
"Third,
"Perhaps, I am still caught up in what ought to be cloud. I beg for forgiveness."
Also reacting, chief executive officer, Cabtree & Vice Chair of the Gas-to-power study group of the
"Anyone giving the President or the NNPC advice now is not on top of issues. NNPC is to be more transparent now than in the past."
Recently, Kyari, had said the apex oil company will serve as a holding company for all its subsidiaries in the post Petroleum Industry Act, PIA era.
"So, these shareholders can decide, as the law provides that over time, they can reduce the shareholding into some private shareholding. That means it can be floated subsequently as a company that is quoted on the stock exchange. The intention at the very onset is not to go to that step but there is provision in the law that allows us ultimately to sell shares of this company.
"This is very simple. This company will pay taxes and royalties, which are revenues that accrue to the federation. So every part of this country and every sub national institution or government will benefit from it.
"Secondly, this company will pay company income tax that also comes to the federation for the benefit of all. So, what is different is that this company will now have profit to make and declare dividend, which will be decided by the board of directors of this company."
Kyari, who commended the legislators for providing three per cent of the budget of oil companies for the development of host communities in the PIA, added: "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 not get to them."
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