Section 3: Transfer of assets and liabilities of the Authority to the initial holding company.

(1) The National Council on Privatisation, shall by written notice in a Gazette fix the date, (in this Act known as the "initial transfer date"), on which the assets and liabilities of the Authority as specified in subsection (2) of this section shall be transferred to the initial holding company.
(2) The assets and liabilities vested in the Authority as at the initial transfer date and appearing on the audited balance sheets of the Authority, shall vest in the initial holding company.
(3) The vesting of assets and liabilities under subsection (2) of this section shall be provisional until final orders are issued by the National Council on Privatisation under this section.
(4) Within eight months from the initial transfer date, the National Council on Privatisation shall, on the finalisation of the opening balance sheet of the initial holding company, issue final order either confirming or specifying the transfer of assets and liabilities under subsection (2) and this Part applies with necessary modifications to the final order.
(5) The transfer of a liability or obligation under this section releases the Authority from the liability or obligation.
(6) All bonds, hypothecations, securities, deeds, contracts, instruments, documents and working arrangements that subsisted immediately before the initial transfer date and to which the Authority was a party shall, on and after that date, be as fully effective and enforceable against or in favour of the initial holding company as if, instead of the Authority, the initial holding company had been named therein.
(7) Any cause of action or proceeding which existed or was pending by or against the Authority immediately before the initial transfer date shall be enforced or continued, as the case may be, on and after that date by or against the initial holding company in the same way that it might have been enforced or continued by or against the Authority had this Act not been passed.
(8) No action or other proceeding shall be commenced against the initial holding company in respect of any employee, asset, liability, right or obligation that has been transferred to the initial holding company if, had there been no transfer, the time for commencing the action or other proceeding would have expired,
(9) A transfer under subsection (2) of this section shall not be deemed to-
(a) constitute a breach, termination, repudiation or frustration of any contract, including a contract of employment or insurance;
(b) constitute a breach of any Act, regulation or by-law; or
(c) constitute any event of default or force majeure;
(d) give rise to a breach, termination, repudiation or frustration of any licence, permit or other right;
(e) give rise to any right to terminate or repudiate a contract, licence, permit or other right ; and
(f) give rise to any estoppels.
(10) Subsection (9) of this section does not apply to the contracts as may be prescribed by the regulations.
(11) Subject to subsection (10) of this section nothing in this Act and nothing done as a result of a transfer under subsection (2) of this section shall create any new cause of action in favour of:
(a) a holder of a debt instrument that was issued by the Authority before the initial transfer date;
(b) a party to a contract with the Authority that was entered into before the initial transfer date.
(12) Any guarantee or suretyship which was given or made by the Federal Government of Nigeria or any other person in respect of any debt or obligation of the Authority, and which was effective immediately before the initial transfer of the principal debt or obligation, shall remain fully effective against the guarantor or surety on and after the initial transfer date in relation to the repayment of the debt or the performance of the obligation, as the case may be, by the initial holding company to which the principal debt or obligation was transferred.