NNPC Limited to be incorporated Feb 2022, timeline for PIA implementation

Adejoke Adeogun
Adejoke Adeogun
NNPC Building

The federal government has set timeline for the implementation of the Petroleum Industry Act (PIA).

This followed the inauguration of a nine-member steering committee headed by Timipre Sylva, minister of state on petroleum.

Last week, President Muhammadu Buhari signed the petroleum industry bill into law.

During the inauguration, the president said the main responsibility of the steering committee is to guide the effective and timely implementation of the PIA and ensure that new institutions created have the full capability to deliver on their mandate under the new legislation.

The timeline is a two-year plan for the incorporation of NNPC, establishment of regulatory authorities, and the creation of host community trust fund.

Under the timeline, by November 2022, it aims to establish and set domestic gas base price.

It slated February 2022 for the conversion of the Nigerian National Petroleum Corporation (NNPC) into a limited liability company. It also fixed May 2022 for the creation of committees and nomination of board members for the company.

In August 2022, the federal government said it would implement the host community trusts fund. It fixed the same month for the submission deadline of gas flaring elimination and monetisation plans by licensees.

In 2023, it sets February for the transfer of assets and liabilities to NNPC limited and by August to establish a framework for payment of non-transferable liabilities.

It fixes August 2023 for the confirmation and modification of midstream and downstream tariffs for the sector.

The timeline did not set a specific time frame for the establishment of the upstream petroleum regulatory commission and midstream and downstream regulatory authority.

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