Delayed IPO: We will make initial public offering soon – NNPCL GCEO

…tasks stakeholders on deliberate plans, partnership to boost efficiency

By Mathew Dennis, Abuja

The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr Mele Kyari has provided updates on the NNPCL’s intention to make an initial public offering (IPO).

Stating some of the reasons behind the push for an IPO, Kyari noted that the NNPC Limited operates in a dynamic market landscape.

He highlighted that the NNPCL will operate as a Companies and Allied Matters Act (CAMA) company, will declare its shares to the public.

Kyari made the disclosure at the Nigeria Oil and Gas (NOG) Energy Week, Nigeria’s foremost international energy conference.

The 2023 Energy Week is the 22nd edition of the annual event holding at the International Conference Centre, Abuja.

Earlier in September 2021, Mele Kyari revealed that the NNPCL 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.

He had said: “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.”

Lamenting about the non-payment of servjce offered by the NNPCL, Kyari said, “We supply gas, we don’t get payment for it; we supply power and we don’t get payment it. So, you can’t run any business this way. You cannot be sustainable.”

“So it’s a multiple issue that is for all of us and I’m happy to say this moment that this country is changing and by the way, I can tell you where the competition. We are NNPCL. We don’t create rules anymore. We are the competition.

“We will pay taxes; we will pay royalties like anyone; we will also pay dividends to our shareholders which many of you. So 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 per cent.”

Highlighting other key initiatives being embarked on by the NNPCL, Kyari asserted that affordability, accessibility and sustainability are the drivers of Nigeria’s energy future.

Speaking on the theme “Powering Nigeria’s Sustainable Energy Future” Kyari said we are here to discuss and debate strategies that will increase investment flows into the country and enhance Industry operations,and promote international partnership.

“The gathering draws together policymakers, regulators, and leaders from the private sector to discuss Nigeria’s vital energy agenda.

“Over 30 per cent don’t have access to electricity. So, is energy available or is it the problem of affordability. Is it that we have an unsustainable situation or is it combination of all of them? I think we are dealing with the combination of all.”

According to him many issues have made affordability of energy a matter of concern for everybody not just the consumer.

Key initiatives disclosed by the NNPCL GCEO yesterday 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.

Reaffirming Nigeria’s status as a gas nation with associated oil, Kyari reiterated the need to bridge the skilled manpower gap, ensure asset security, and invest in infrastructure to transform challenges into opportunities. For the GCEO, strategic decisions like subsidy removal have already paved the way for positive change in the sector, while freeing up capital for powering the sustainable supply of energy.

Kyari also assured stakeholders in the oil and gas sector of more strategic plans and partnerships to enhance productivity in the industry.