- NNPC Plans to List Shares for Public Investment: The Nigerian National Petroleum Company Limited (NNPC) has announced its intention to offer shares of the oil company to the public, marking a departure from its previous fully state-owned structure. The move is in line with the newly enacted Petroleum Industry Act 2021 (PIA) and aims to increase transparency and accountability.
- IPO Target Date Set by NNPC CEO: Mele Kyari, the Group Chief Executive Officer of NNPC, has set a target date for the initial public offering (IPO) of the shares. The IPO is expected to be ready by the end of June or, at the latest, by the end of this year. The National Economic Council’s approval is required to sell a specific portion of the shares.
- Focus on Transparency and Accountability: Kyari emphasized the importance of maintaining robust and transparent systems throughout the process of listing NNPC shares. The corporation aims to complete the IPO within three years, with the target of going public by 2024.
NNPC Makes Exciting Comments on Plans to List Shares for Public Investment
The Nigerian National Petroleum Company Limited (NNPC) has announced its intention to offer shares of the oil company to the public, marking a significant departure from its previous fully state-owned structure. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, reiterated the corporation’s plans to list shares and emphasized the importance of transparency and accountability throughout the process.
Currently, the shares are held in trust by the Federal Ministry of Finance Incorporated and the Federal Ministry of Petroleum, representing the federation. The newly enacted Petroleum Industry Act 2021 (PIA) enables NNPC to offer its ordinary shares to Nigerians and interested international partners who align with the company’s values. To facilitate this, the shares would be taken to an Initial Public Offering (IPO) stage. However, specific approval from the National Economic Council, composed of the 36 state governors, is required to sell a portion of the shares.
Mele Kyari highlighted the corporation’s commitment to transparency and accountability. Robust and transparent systems have been established to ensure the integrity of the process. The target is to have the IPO ready by the end of June or, at the latest, by the end of this year. According to the incorporation timeline of NNPC in 2021, the IPO should be completed within three years, setting the goal of going public by 2024.
The decision to offer shares to the public is expected to bring numerous benefits, including increased transparency and accountability within the NNPC. By allowing Nigerians and interested international partners to invest in the company, NNPC aims to foster a sense of ownership and ensure that the benefits of the oil industry are shared by all stakeholders. The move also aligns with the broader objectives of the Petroleum Industry Act 2021, which seeks to reform and modernize the oil and gas sector in Nigeria.
By offering shares to the public, NNPC aims to attract new investors and enhance the company’s financial standing. It will provide an opportunity for individuals and organizations to participate in the growth and success of the company. The IPO will allow interested parties to acquire a stake in NNPC and potentially benefit from its future profitability and dividends.
The decision to go public reflects NNPC’s commitment to transparency and accountability. By subjecting itself to the scrutiny of the stock market and shareholders, NNPC aims to enhance its corporate governance practices and ensure efficient management of its resources. This move is a significant step towards aligning the corporation with global best practices and improving its overall performance.
The listing of NNPC shares on the stock market will also have positive implications for the Nigerian economy. It will attract both domestic and international investors, stimulating capital inflows and boosting the country’s capital market. The increased liquidity and market activity resulting from the IPO will contribute to the development and growth of the Nigerian financial sector.
Furthermore, the IPO will provide an opportunity for the Nigerian public to participate in the country’s oil industry, which plays a crucial role in the nation’s economy. It will enable ordinary Nigerians to become shareholders and benefit from the profits generated by the oil company. This move is in line with the government’s efforts to promote economic empowerment and inclusivity.
In conclusion, the Nigerian National Petroleum Company Limited’s decision to list its shares for public investment represents a significant shift towards increased transparency, accountability, and participation in the oil industry. With the target date set for the IPO, NNPC aims to complete the process within the next few years, allowing individuals and organizations to become shareholders and contribute to the company’s success. The move also aligns with the broader objectives of the Petroleum Industry Act 2021 and is expected to have positive implications for the Nigerian economy. By opening up ownership and inviting public investment, NNPC is taking a crucial step towards ensuring that the benefits of the oil industry are shared by all stakeholders.
Source: Editorial Times