Governors fault NNPC’s ownership structure, demand change
Governors fault NNPC’s ownership structure, demand change
John Alechenu, Abuj
Governors of the 36 states of the federation under the aegis of the Nigeria Governors’ Forum have expressed concern over the proposed ownership structure of the Nigeria National Petroleum Corporation as contained in the Petroleum Industry Bill recently passed by the National Assembly.
The governors said while they fully support the unbundling of the cooperation, they were uncomfortable with the proposed ownership structure which gives undue advantage to the Federal Government.
This was contained in a communique issued after the 32nd Teleconference meeting of the forum on Wednesday.
Chairman of the Forum and Governor of Ekiti State, Kayode Fayemi, who signed the communique said, “The Forum is in full support of the unbundling and commercialisation of the Nigeria National Petroleum Corporation but concerned with the proposed ownership structure of the NNPC which places ownership on the Federal Government.
“The NGF recommends that given that the corporation is owned by the three tiers of government, the newly incorporated entity (NNPC Limited) should be owned by a vehicle that holds the interest of the three tiers of government – for now, the institution that is positioned to carry out this mandate is the Nigeria Sovereign Investment Authority.
“This amendment, as well as the proposed three per cent share of oil revenue to host communities and 30 per cent share of profit for the exploration of oil and gas in the basins, will be responded to at relevant channels including the National Assembly and the National Economic Council.”
According to the communique, governors at the meeting also deliberated on other issues of national importance among which include Executive Order #10 and Financial Autonomy for the State Legislature and Judiciary.
On this item, the communique read, “The Forum has approved a common template for the implementation of the Memorandum of Action signed with the Judiciary Staff Union of Nigeria and the Parliamentary Staff Association of Nigeria on the implementation of financial autonomy for the state legislature and judiciary.
“The template was developed following a meeting of the State Attorneys General and Commissioners of Finance which was held on the 25th of June 2021 at the directive of the Forum.”
On the contentious Nigerian Postal Service Bill, 2021 & Stamp Duties Collection the Forum equally expressed concern with certain proposed amendments to the Principal Stamp Duties Act by Senate which seeks to remove the powers to administer and collect stamp duties from the relevant tax authorities (Federal Inland Revenue Service or State Internal Revenue Service, depending on the nature of the transaction) to the Nigeria Postal Service.
The NGF said, “The provisions of Section 163 of the 1999 Constitution requires that Stamp Duties on transactions between a company and an individual should be paid to the FIRS and returned to the state of derivation. The Forum resolved to engage with the National Assembly on the matter.”
On the proposed sale of the Niger Delta Power Holding Company Assets, the Forum said it would take a position on the planned privatization of the company’s assets which were listed by the Bureau for Public Enterprise without due consultation with state governments who are shareholders of the company.
The governors also threw their weight behind the launch of its Peace and Inclusive Security Initiative set up to tackle insecurity, conflicts and violence in the country.
They said, “The launch of PISI which took place on 8th July 2021 heralded an important milestone for NGF as it seeks to build a more inclusive and collaborative platform to drive an urgent country-wide response to security challenges in the country.”
The forum received updates and briefings from relevant officials on the Presidential plan to lift 100 million Nigerians from poverty. PUNCH
