NNPCL set to commence IPO, as firm moves to enhance transparency

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that its Initial Public Offering will take place soon. The company made the disclosure on Thursday in a statement by its Chief Corporate Communications Officer, Olufemi Soneye.

According to the spokesperson, the listing of the NNPCL on the capital market is already in its final stages as provided by the Petroleum Industry Act of 2021. Olufemi Soneye cited that the Chief Finance and Investor Relation Officer of NNPCL, Mr Olugbenga Oluwaniyi confirmed the development during an executive meeting.

As revealed, Soneye said the NNPCL is interacting with potential investors through the “NNPC Ltd. IPO Beauty Parade.” He revealed that the exercise is in relation with the regulations of the Nigerian capital market.

With the IPO, the company aims to enhance transparency and accountability in the Nigerian energy sector. According to the Group Chief executive officer of the company, Mele Kyari, the initial public offering will help put a system in place that will make the firm more accountable to its shareholders.

Furthermore, he stressed the importance of the NNPCL to balance its books before carrying out the IPO. Kyari added that the firm must first recapitalize before taking up such a huge business decision.

Meanwhile, the company is leveraging the PIA to list its shares in the capital market in accordance with the stipulations of the Company and Allied Matters Act 1990.

Side note on NNPCL

The announcement coincides with the recent launching of a medical initiative by the NNPCL to sponsor 1,000 cataract surgeries. As announced, the program is targeted at improving the lives of Nigerians by tackling major health challenges.

However, the NNPCL is currently under fire following the suspension of the crude oil for a naira deal with Dangote. Market experts targeted the company as the major problem behind the crisis in the petroleum sector.