The Petroleum Industry Bill (PIB) has passed first reading on the floor of the Senate.
Senate Leader, Abdullahi Yahaya, presented the bill to the upper chamber during Wednesday’s plenary, and after it was read, the Senate President Ahmad Lawan, directed that full copies of the bill be distributed to all the lawmakers ahead of the second reading where details of the bill will be discussed.
The bill was one of the six bills introduced to the upper chamber on Wednesday.
The reading comes two days after the bill was transmitted to the National Assembly by President Muhammadu Buhari.
The proposed act seeks to scrap the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Regulatory Agency (PPPRA) and establish the Nigerian National Petroleum Company Limited instead.
Also, new agencies such as the Nigerian Upstream Regulatory Commission and the Downstream Petroleum Regulatory Authority will be created after the law is passed and assented to by the president.
Parts of the bill reads: “NNPC shall cease to exist after its remaining assets, interests and liabilities other than its interests, assets, and liabilities transferred to NNPC Limited or its subsidiaries under subsection 1 of this section shall have been extinguished or transferred to the government.”
“The minister shall be at the incorporation of NNPC Limited, consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid-up share capital of the NNPC Limited and the government shall subscribe and pay cash for the shares.”