The Nigerian National Petroleum Corporation (NNPC) has expressed its desire to partner with the Nigerian Exchange (NGX) Limited on exploring several financing options in the capital market for the corporation.
This is coming after NNPC announced plans to get listed in the capital market and sell its shares to the public following the recent signing of the Petroleum Industry Act (PIA) by President Muhammadu Buhari.
According to NAN, this disclosure was made by the Group Managing Director of NNPC, Mr Mele Kyari, while receiving the NGX team, led by its Chairman, Alhaji Abubakar Mahmoud.
What the Group Managing Director of NNPC is saying
Kyari in his statement said, “The recent signing of the Petroleum Industry Act has opened up unique opportunities to create value for our shareholders. As such, there will be the need to access capital to build on our positioning as the largest corporation in Africa and expand capacity.
“We will, therefore, be pleased to collaborate with NGX on the short-term and long-term financing options available in the market and I must thank you for taking the time to visit us today to take this conversation further.’’
What the NGX Chairman is saying
While speaking at the occasion, Mahmoud congratulated NNPC on the successful signing of the PIA which he is confident would transform the oil sector and open up opportunities for both NNPC and NGX.
He said, ”As an Exchange, we are always interested in developing strong relations with notable institutions such as NNPC, and we are quite delighted at some of the recent developments we have seen.
“We would, therefore, like to congratulate you on the successful signing of the Petroleum Industry Act which we are confident will transform the sector and in turn, open up opportunities for both NGX and NNPC to explore going forward.”
On his part, the Chief Executive Officer of NGX, Mr Temi Popoola, praised the management of NNPC for its remarkable efforts at improving transparency, accountability and performance in the corporation.
What the Chief Executive Officer of NGX is saying
He said, ”Today, we are delighted to have the opportunity to explore several capital market-related financing topics with the NNPC, including a potential listing on the exchange.
“An NNPC listing will have tremendous positive benefits for the Nigerian capital markets and will go a long way in deepening the current transformation that is occurring at the NNPC.
“Furthermore, the capital markets present a credible opportunity for the NNPC to meet its short and long term financing plans. NGX, working with other stakeholders, is keen to facilitate this.’’
What you should know
- It can be recalled that over a week ago, the NNPC announced that it is considering an initial public offer (IPO) of its shares after declaring a profit of N287 billion for the first time in its 44 years of operation in the 2020 financial year.
- This is also coming after President Muhammadu Buhari, earlier in August 2021, signed into law the Petroleum Industry Act (PIA), which enables the state-owned oil giant to offer its shares to the public
- The news of the proposed sales of NNPC shares to the public and its subsequent listing on the Nigerian exchange limited is a very good one as it is hoped that this will help improve transparency and accountability in the oil firm which had been bedevilled with large scale corruption.
- This will also be a huge boost to the country’s stock market and allow Nigerians to have a say in the running of the oil firm rather than just a few individuals.