NNPCL CEO Mele Kyari Reaffirms Plan to Sell Shares to Nigerians Soon

NNPCL CEO Mele Kyari Reaffirms Plan to Sell Shares to Nigerians Soon

  • The CEO of NNPC Ltd has restated that the company would soon release its Initial Public Offer (IPO) to potential investors
  • Mele Kyari also stated that the company would pay royalties and dividends to shareholders
  • He mentioned that the company would compete with other privately owned companies in the sector

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its intention to sell the company's shares to Nigerians.

Mele Kyari, the NNPCL's group chief executive officer (GCEO), restated this while speaking in Abuja on Tuesday, July 11, 2023, at the 22nd edition of the 2023 Nigeria Oil and Gas (NOG) Energy Conference and Exhibition.

NNPCL, IPO, Shares
NNPC's CEO, Mele Kyari, restates the plan to sell the company's shares to Nigerians soon. Photo credit - NNPCL
Source: Twitter

It would be recalled that in July 2022, under former President Muhammadu Buhari, the NNPC transformed from a public to a privately owned oil company with over 200 million shares.

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"We're now a public company": NNPC to invite Nigerians to buy shares soon, says Kyari

Even though the company had since then promised Nigerians opportunities to acquire its shares, that intention was yet to materialise.

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Speaking on the topic, "Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future’’ Kyari stated the decision to go public and sell shares is based on the law.

He said:

As a Company that is guided under the regulations of the Companies and Allied Matters Act, the NNPC Ltd. 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 own by the government 100%. You are also aware, we are going Initial Public Offer very soon, we will sell a part of our equity.

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According to NAN, Kyari added that the step-by-step process of declaring its shares for sale is documented in the law.

However, there are apprehensions regarding Nigeria's significant reliance on hydrocarbons and the extensive reforms undertaken by NNPC to stimulate oil exploration and refining, which might place the country at a disadvantage in the global shift towards gas.

Nigeria's oil production is currently grappling with various security challenges, such as crude oil theft, insurgency, banditry, and ransom kidnappings.

The conference, themed “Powering Nigeria’s Sustainable Energy Future”, was well-attended by regulators, leaders, policymakers and other industry stakeholders.

NNPC is now Nigeria’s biggest company by shares capital

In related news, Legit.ng reported that the NNPC became Nigeria’s biggest company by share capital as it entered a new era 44 years after it was established.

On Tuesday, July 19, 2022, former President Muhammadu Buhari officially transformed the status of NNPC, making it a fully-fledged Limited Liability Company.

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As a result, NNPC's operations will align with the provisions outlined in the Companies and Allied Matters Act (CAMA) of 20.

This development signifies that the public will have the opportunity to buy and sell NNPC shares, although the process is not yet available.

Upon its incorporation with the Corporate Affairs Commission, NNPC established an initial share capital of N200 billion, which represents the largest investment made by the Federal government in Nigeria, according to the Corporate Affairs Commission (CAC).

Source: Legit.ng

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