By Eniola Idris
Governors in the 36 States of the Federation Wednesday night rose from a teleconference meeting picking holes in the planned unbundling and commercialization of the Nigerian National Petroleum Corporation (NNPC).
The governors, in a communique issued at the end of the meeting and signed by the chairman of the Nigeria Governors Forum (NGF) and Ekiti State governor, Kayode Fayemi, however expressed reservations about the ownership structure as approved in the passage of the Petroleum Industry Bill (PIB) passed by the National Assembly recently.
“The forum is in full support of the unbundling and commercialization of the Nigeria National Petroleum Corporation (NNPC) but concerned with the proposed ownership structure of the NNPC which places ownership on Federal Government.”
The communique also stated that the NGF recommended that “given that the corporation is owned by the three tiers of government, the new incorporated entity (NNPC Limited) should be owned by a
vehicle that holds the interest of the three tiers of government”
According to the governors, “for now, the institution that is positioned to carry out this mandate is the Nigeria Sovereign Investment Authority (NSIA). “
The communique also made it clear that the governors would soon make their responses to the proposed 3% share of oil revenue to host communities and 30% share of profit for the exploration of oil and gas in the basins known at a consultation with the National Assembly.
“This amendment as well as the proposed 3% share of oil revenue to host communities and 30% share of profit for the exploration of oil and gas in the basins will be responded to at relevant channels including the National Assembly and the National Economic Council (NEC).” It stressed.
The governors also approved a common template for the implementation of the “Memorandum of Action signed with the Judiciary Staff Union of Nigeria (JUSUN) and the Parliamentary Staff Association of
Nigeria (PASUN) on the implementation of financial autonomy for the State legislature and judiciary. The template was developed following a meeting of the State Attorneys General and Commissioners of Finance which held on the 25th of June 2021 at the directive of the Forum”
On the Nigerian Postal Service Bill, 2021 and the Stamp Duties Collection, the communique stated that “the Forum expressed concern with certain proposed amendments to the Principal Stamp Duties Act by the Nigerian Senate which seeks to remove the powers to administer and collect stamp duties from the relevant tax authorities (Federal Inland Revenue Service or State Internal Revenue Service, depending on the nature of the transaction) to the Nigeria Postal Service.
It stated that regarding the provisions of Section 163 of the 1999 Constitution which requires that Stamp Duties on transactions between a company and an individual should be paid to the FIRS and returned to the State of derivation, the forum resolved to engage with the National Assembly on the matter.
On the Sale of Niger Delta Power Holding Company (NDPHC) Assets, the Forum said it will take a position on the planned privatization of assets of the Niger Delta Power Holding Company (NDPHC) which were listed by the Bureau for Public Enterprise (BPE) without due consultation
with state governments who are shareholders of the company.
It observed that the NDPHC is incorporated under the Companies and Allied Matters Act as a private limited liability company with shareholding fully subscribed to by the Federal, State and Local Governments with a mandate to manage National Integrated Power
Projects (NIPP) in the company.
According to the communique, the Chairman of the Forum, Governor Kayode Fayemi informed members about the inauguration of the National Steering Committee (NSC) of the National Poverty Reduction and Growth Strategy (NPRGS) chaired by Vice President Yemi Osinbajo with a mandate to lift 100 million Nigerians out of poverty in ten years.
It said State Governors have been enjoined to nominate focal persons who will consolidate policy strategies put in place by State governments to end poverty in the country.
The focal persons will be inducted into a technical working group chaired by the Governor of Nasarawa State, Abdullahi Sule and co-chaired by the Honourable Minister of State for Finance, Budget
and National Planning, Prince Clem Ikanade Agba.
The Forum also received an update from the Governor of Lagos State, Babajide Sanwo-Olu, on the recent rise in confirmed COVID-19 cases and called for consensual action to prevent a third wave in the country.
Following the update, the Forum called on all State Governors to revive their COVID
protocols and collaborate with the Nigeria Centre for Disease Control (NCDC) to take appropriate and immediate actions to flatten the transmission curve.
The forum said it will interface with the Presidential Steering Committee on COVID-19 to accelerate processes required to fast track the delivery of additional vaccines for the country.
