By Eyo Nsima

The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kyari, has said the apex oil company will serve as a holding company for all its subsidiaries in the post Petroleum Industry Act, PIA era.

Speaking in Abuja, Nigeria, he said: “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.
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“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 subnational 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, Also commenting on the host communities, he said: “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.”