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The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari has said that the firm is gearing up for an initial public offering (IPO) and will declare its assets to the public soon.
He said this during his keynote speech at the ongoing Nigerian Oil and Gas Week Conference and Exhibition in the country’s capital, Abuja.
The NNPCL also highlighted this in a post made on the company’s social media platform earlier today, July 11.
According to Kyari, NNPC Limited operates in a dynamic market landscape, is gearing up for an IPO, and, as a Companies and Allied Matters Act (CAMA) company, will declare its shares to the public. He also highlighted three drivers of Nigeria’s energy future, which include – Affordability, Accessibility and Sustainability.
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According to Kyari, there are important initiatives being carried out that would secure the country’s energy supply. They are:
- Plans to expand natural gas infrastructure to deliver gas across West Africa and potentially, Europe.
- The expansion of liquefaction capacity of the Nigeria Liquefied Natural Gas (NLNG) Limited.
- Enabling availability of Liquefied Petroleum Gas (LPG) as a cooking fuel and Compressed Natural Gas (CNG) as alternative fuel for automobiles.
Kyari also pointed out that Nigeria is more of a gas country than an oil country. He said:
- “We are a gas country with associated oil. We would like to see more private sector companies coming in.”
He also emphasized on the need to bridge Nigeria’s skilled manpower gap, ensure asset security, and invest in infrastructure to transform challenges into opportunities. Addressing the fuel subsidy removal, Kyari said that the decision was necessary to create the atmosphere for change in the oil sector.
He noted that the fuel subsidy removal will bring a positive change in the industry as there will now be enough capital to ensure continuous supply of energy to Nigerians.
It is important to note that in September 2021, Mele Kyari said that the company will be ready to issue an initial public offering (IPO) in three years. At the time, he stated:
- “NNPC will now be operated in line with the Companies and Allied Act. The NNPC may not be able to offer its shares to the public by 2022 or 2023 due to certain bottlenecks that had lingered over the years.
- “But when you want to get ready for IPO, you need to do things different. You need to get your books correct; you need to recapitalise; you need to shape your portfolio and many more things that you have to do until you get IPO ready.
- “Surely, it is not what we will do in 2022 or 2023; probably the earliest consideration will be in three years’ time.”
Step in the right direction. Long overdue. I hope majority holding will be sold off. If government decides to retain majority shareholding then I worry this arrangement will never work. Government should hands off completely or hold an absolute maximum of 5%.
What is Mele Kyari still doing in office. Is he immune to the executive order given by the President that dissolves all boards of government owned companies, agencies and parastatals?
Untill there is a shake up in NNPCL there cannot be any improvement. Corruption has eaten deep into NNPC fabric. They are not employed to be importing fuel (finished products) into the country and sell. They are to refine our crude distribute and sell, but now they have left their primary responsibility and comfortable with importing and selling fuel.
This should not be allow to continue for a day longer by the new government.
For Nigeria to increase her income NNPCL need serious shake up.
I was expecting the new administration to visit the NNPCL by carrying out an immediate investigation of the company with a view of purging out the corrupt officials and then privatize the company. I visualize a whole of mess going on for a company that is to supervise the sale of crude oil and refine oil now engaging in the importation of refined oil to the country. If I may ask, what has become of Nigeria’s four refineries? The Federal Government should come out strongly against the management of the NNPCL and move the company forward. Funds realized from the company should be enough to cancel all our indebtedness to the developed world. There are capable and qualified Nigerians who can effectively manage NNPCL proficiently. Let there be sanity and progress in the administration of the company.