The Federal Government of Nigeria has set a timeline to carry out the Petroleum Industry Act (PIA) which was signed into law by President Muhammadu Buhari last week.
In its zeal to implement the act, the President inaugurated a nine-member committee headed by the Minister of State on petroleum, Timipre Sylva.
The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, on Tuesday, while speaking on the signed law noted that the development is a relief for the oil and gas industry in the country and beyond.
Kyari while speaking on NTA, ‘Good Morning Nigeria’ disclosed that NNPC has been stagnated because of a lack of clarity about the physical environment and because the laws guiding the corporation are stale.
He further stated that the lack of progress and changes in the laws guiding the industry saw partners of the corporation leave the country.
The GMD, in his reaction to the two-year timeline for the establishment of regulatory authorities and the creation of host community trust fund said the commitment would actualise the laws in a year and full compliance would be in place in the next two years.
Kyari added that the corporation within the two-year timeline would migrate from the Nigerian National Petroleum Corporation into a limited liability company.
He noted that there would be a transfer of assets and liabilities to NNPC limited and the establishment of a framework for payment of non-transferable liabilities.
Kyari, when asked if the outcry of southern governors over the 3 per cent of the NNPC profit would affect the implementation of the PIA, noted that the corporation had not clearly stated what it entails and this has steered reactions.
He added that if the state government creates an enabling environment it would attract foreign investors in their respective states and would be of benefit to their economy.