The Nigerian Content Development and Monitoring Board (NCDMB) has called on major oil companies in Nigeria to list their shares on the Nigerian Stock Exchange (NSE), as that would facilitate growth in the sector.
The Executive Secretary of NCDMB, Simdi Wabote, made the call today during an interview with Channels Television.
According to him, the listing of major oil companies on the Nigerian bourse would add value to Nigeria’s hydrocarbon resources; specifically petrochemical industries, fertiliser companies, and refineries. It would also avail more Nigerians the opportunity to participate in national wealth creation.
Earlier on during a visit of the management of NCDMB to the NSE, Wabote noted that most oil and gas companies on the stock market are into the marketing of petroleum products. Therefore, listing on the Exchange would enable these companies to pool resources together (from Nigerians) whilst ensuring growth.
“We will like to see more of the upstream and mid-stream companies listed on the Exchange. More importantly, we will like to see a major shift in the listing of companies that add value to our hydrocarbon resources in the country such as refineries, petrochemical industries, fertiliser companies, and companies in the liquefied petroleum gas and compressed natural gas value chain.” – Wabote
Wabote also commended the NSE for always serving as a means to wealth creation and distribution, through the provision of facilities for long-term investments.
There are currently about 11 oil and gas companies on the Nigerian Stock Exchange, most notable of which include Total Nigeria Plc, Seplat, Oando Plc, MRS Oil Nigeria Plc, etc.
Commenting on the latest developments at NCDMB, Wabote said the Board has launched a 10-year strategic plan that will ultimately increase Nigeria’s oil and gas content level to 70% in 2027, up from its current level of 30%.
He also stated that the NCDMB has taken up about 30% stake in an unnamed 5,000 bpd modular refinery, even as it is considering similar proposals for the establishment of other modular refineries.
Established in 2010 by the Nigerian Oil and Gas Industry Content Development Act (NOGICD), NCDMB serves as the catalyst for the development of the Nigerian oil and gas industry as well as its linkage sectors.