The Nigerian National Petroleum Company Limited (NNPCL) is making plans for an initial public offering (IPO), according to Group Chief Executive Officer, Mele Kyari.
Kyari, who disclosed this on Tuesday during his keynote speech at the ongoing Nigerian Oil and Gas Week Conference and Exhibition in the country’s capital, Abuja, added that the company also plans to sell shares to the public.
The move comes nearly one year after the NNPCL transited from a public corporation to a limited liability company. The company said last year that it will take a step toward IPO by the middle of 2023.
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“We will go to the market and this is going to happen soon. This is the new direction, and I can confirm to you that Mr. President is completely committed,” Mele Kyari said last July at an energy conference in Abuja.
Kyari, who pointed out that NNPC Limited operates in a dynamic market landscape, said the company has started making preparations for an initial public offering (IPO).
“As a company governed by the Companies and Allied Matters Act (CAMA), it intends to make its shares available to the general public,” he said.
Kyari emphasized Affordability, Accessibility, and Sustainability as the three crucial factors that will drive Nigeria’s energy future.
These factors will be implemented alongside other key initiatives that include expanding gas infrastructure to deliver gas across West Africa and potentially, Europe, expansion of liquefaction capacity of NLNG, and enabling availability of LPG as a cooking fuel and CNG as alternative fuel for automobiles, he said.
To implement these initiatives, Kyari emphasized the need to bridge Nigeria’s skilled manpower gap, ensure asset security, and invest in infrastructure to transform challenges into opportunities.
Speaking on the fuel subsidy removal, which has resulted in the high cost of petrol, Kyari said that the decision was necessary to create the atmosphere for [the needed] change in the oil sector.
The GCEO further noted that the fuel subsidy removal will bring a positive change in the industry as there will now be enough capital to ensure a continuous supply of energy to Nigerians.
However, an energy expert said on its way to the IPO, the NNPCL will need to raise at least $30bn to fund these capital projects such as an LPG processing plant, LNG & LPG Vessels, Bulk Storage Terminals for LPG throughput, and Gas gathering manifolds.
“I am curious to see the book building process; security underwriters, price discovery, issuing houses, exchange it will be quoted on, a treasury management strategy for remitting dividends to shareholders (if listed on LSE or NYSE), Corporate Governance,” Kelvin Emmanuel, CEO of Dairy Hills Ltd.