Following the proposed stake sale of at least 40 per cent of a newly created National Petroleum Co, NPC, in coming years, the Federal Government has unveiled plans to split the Nigerian National Petroleum Corporation, NNPC, into two to help ease.
This was revealed in a draft of a long-awaited oil bill seen by Reuters. The bill envisages the sale of at least 10 per cent of NPC over five years, and is targeting 40 per cent or more over 10 years.
The transaction is expected to fix a cash shortage that is hampering investment at NNPC and end graft.NNPC’s output has been stagnant at around two million barrels a day for years as the company struggles with graft, bureaucracy and funding problems.
To accelerate the reform process, the nation is breaking up the bill, with the first part dealing with the reform of NNPC, a pet project of Buhari.
“Divestment of shares may include the sale or transfer of shares to institutional or strategic investors,” the draft stated.
A sale of at least a 10 per cent stake in the new firm is to take place within five years, with the rest to happen within 10 years, the bill says.
An unnamed source said: “Bidding is open to international investors.”
