The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its intention to launch its Initial Public Offering (IPO) in the near future. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC Ltd, made this announcement during the 22nd edition of the 2023 Nigeria Oil and Gas (NOG) Energy Conference and Exhibition held in Abuja on Tuesday.
The conference, themed “Powering Nigeria’s Sustainable Energy Future,” provided a platform for industry stakeholders to discuss vital energy matters, policy implementation, and investments. Kyari addressed the audience, speaking on “Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future,” and emphasized that the decision to issue the IPO was based on legal provisions.
Highlighting NNPC Ltd’s compliance with the regulations of the Companies and Allied Matters Act, Kyari stated that the company would soon offer its shares to the public for acquisition. He assured investors that NNPC Ltd would fulfill its financial obligations, including payment of taxes, royalties, and dividends to shareholders. Kyari emphasized that despite being government-owned, NNPC Ltd operates as a private sector entity and will undergo transformational changes once it becomes a publicly-traded company.
Regarding the removal of subsidies, Kyari highlighted the positive impact it has had on the sector by freeing up capital for sustainable energy supply. He also stressed NNPC Ltd’s role as a facilitator of business, citing its partnerships responsible for over 80% of Nigeria’s oil and gas production. Kyari emphasized the importance of a mutually beneficial relationship, where NNPC Ltd ensures value delivery, and in return, receives compensation based on profit oil from Production Sharing Contracts (PSCs).
Addressing the issue of energy poverty, Kyari acknowledged that over 30% of the population lacks access to electricity. He discussed the challenges related to energy availability, affordability, and sustainability. Kyari pointed out that energy is currently not readily available or affordable due to various structural and financial issues, affecting both businesses and consumers. He emphasized the need to bridge the skilled manpower gap, enhance asset security, and invest in infrastructure to transform challenges into opportunities.
Kyari also outlined key initiatives on NNPC Ltd’s horizon, including expanding gas infrastructure for regional delivery, increasing liquefaction capacity of the Nigeria Liquefied Natural Gas (NLNG) company, and promoting the availability of Liquefied Petroleum Gas (LPG) for cooking and Compressed Natural Gas (CNG) as an alternative automotive fuel.
The NOG Energy Week, Nigeria’s premier international energy conference, gathered policymakers, regulators, industry leaders, stakeholders, and partners to discuss vital energy agendas, policy implementation, and investment opportunities.
