Mele Kyari, the Nigerian National Petroleum Corporation’s (NNPC) Group Managing Director, has stated that the company’s Initial Public Offering to investors will take place within the next three years.
This was revealed by the NNPC chairman on Monday during an interview with Bloomberg TV Global Financial News, which our correspondent was watching.
The announcement is one of the results of the Petroleum Industry Act, which was recently signed by the state-owned firm on the international market.
Concerning the PIA’s impact on the NNPC, Kyari stated that the corporation would henceforth be run in accordance with the Companies and Allied Act.
However, he stated that the NNPC 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.
“We will be in a position to examine any IPO in three years; that is the law’s provision,” Kyari said.
“However, if you want to prepare for an IPO, you must do things differently. You must rectify your books, recapitalize your company, shape your portfolio, and complete a slew of other tasks before you can file for an IPO.
“Surely, it is not what we will do in 2022 or 2023; probably the earliest consideration will be in three years’ time.”
It was reported last week that the corporation declared a profit of N287bn in 2020, the first time the oil giant declared in 44 years.
Kyari had stated the profit fell far below the NNPC’s potential.
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On the development, the GMD said, “Obviously this company is changing very fast and on the fast lane. We just declared profit for the fiscal year 2020.
“We are not getting ready for the IPO tomorrow; that is not exactly, that is not the situation. IPO really means this company is going to be profitable, it has a long trajectory, it has a short-term view of how things can be done better to align with the best practice in the industry.
“We are trying to see how we can relax the existing framework for energy transition that is ongoing all over the world.
“Every country is adjusting its portfolio by doing things differently in a better way and obviously in the long run, this is going to be a very great company and great companies always go for IPO.
“So, this is not something that we are going to do tomorrow. Obviously not. Our new law has made the provision that we can sell shares of this company, but in today’s context, I really say this company is doing great and getting an IPO means that it is going to be better than what it is today.”
Speaking on why the NNPC is taking stake in the 650,000 barrels per day of crude oil Dangote Refinery owned by Africa’s richest business man, he said the major consideration was energy security.