The Nigerian National Petroleum Company Limited (NNPC Ltd) has reiterated its plans to launch an initial public offering (IPO) to investors in the near future. This was stated by the Group Chief Executive Officer (GCEO) of NNPC Ltd, Mele Kyari, at the 22nd edition of the 2023 Nigeria Oil and Gas (NOG) Energy Conference and Exhibition on Tuesday in Abuja. The theme of the conference is “Powering Nigeria’s Sustainable Energy Future.”
Mr. Kyari made the announcement while speaking on “Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future.” He stated that the decision to launch an IPO was based on the law, which requires the NNPC to become a commercial entity and be listed on the stock exchange.
The IPO is expected to raise billions of dollars for the NNPC, which will be used to fund its operations and investments in the oil and gas sector. It is also expected to make the NNPC more transparent and accountable to the public.
The IPO is still in the planning stages, and no specific date has been set for its launch. However, Mr. Kyari said that the NNPC is committed to launching the IPO as soon as possible.
” As a Company that is guided under the regulations of the Companies and Allied Matters Act, the NNPC Limited will declare its shares to the public for acquisition very soon.
“We will pay taxes; we will pay royalties like anyone; we will also pay dividends to our shareholders, which many of you are.
” We are in business, and business means competition. We are a private sector; forget about the fact that we are owned by the government 100 percent.
“You are also aware we are going Initial Public Offer very soon; we will sell a part of our equity.
” It is in the law, and once that happens, we will not be any different for any of you, and it will be a very different business environment,” he said.
Mr. Kyari said that the removal of fuel subsidies had led to positive changes in the energy sector by freeing up capital that could be used to invest in sustainable energy sources.
“Are we positioned to facilitate business? Yes, but our partnership produced over 80 percent of the oil and gas in the country either directly or through our off-stream company or through our partnership.
“I am in a position to facilitate business. On the PSC today, we are just agents of the state, trying to make sure we deliver value to them, and then they will pay.
“I am sure you appreciate this new relationship. The PSCs are not on the balance sheet of the NNPCL.
” We make sure you do your work because when you do, we are compensated 40 percent of your profit oil, so it is important for us as well as business for us,” he said.
The NNPCL boss said that the company’s focus now was to help more people get access to energy, as energy poverty was a major problem in Nigeria.
Mr. Kyari said, “Over 30 percent do not have access to electricity. So, is energy available, or is it the problem of affordability?
” Or it is that we have an unsustainable situation, or is it a combination of all of them? I think we are dealing with the combination of all.”
He argued that energy is not affordable in the true sense of the word if it is not available. He attributed this to a number of factors and issues that make affordability a concern for everyone.
“We supply gas, we do not get payment for it; We supply power, and we do not get payment for it.
” So, you cannot run any business this way. You cannot be sustainable. You cannot create affordable energy, and it will not be available.”
NNPCL’s CEO, Mele Kyari, said that affordability, accessibility, and sustainability are the key drivers of Nigeria’s energy future. He also mentioned that the company is planning to expand its gas infrastructure to deliver gas across West Africa and, potentially, Europe. Additionally, he said that the company is committed to expanding the liquefaction capacity of NLNG and enabling the availability of LPG as a cooking fuel and CNG as an alternative fuel for automobiles. Finally, Kyari reiterated the need to bridge the skilled manpower gap, ensure asset security, and invest in infrastructure to transform challenges into opportunities.
The NOG Energy Week is Nigeria’s foremost international energy conference aimed at discussing policy implementation, vital energy agenda, and investments, among others. The ongoing event was attended by policymakers, regulators, leaders, stakeholders, and partners of the industry.