By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited will be ready to launch an initial public offering (IPO) in the middle of next year, the Group CEO, Mr Mele Kyari, has said.
Speaking on Tuesday after the state-run firm formally became a commercial company known as NNPC Limited by President Muhammadu Buhari, Mr Kyari said, “We are convinced that by the middle of next year, this company will be IPO ready, which means that you have the system, processes, and a company that is accountable to its stakeholders and shareholders.”
As a commercial entity, NNPC Limited will no longer have recourse to state funds, easing pressure on the coffers of the nation’s treasury. This means that its shares and assets, including oil blocs and refineries, are now held by the Federal Minister of Petroleum and the Minister of Finance.
NNPC Limited operates joint production ventures with Western oil majors but anti-corruption campaigners have long asked for the company to be more transparent, calling for the publication of its crude contracts and a statement of accounts.
On his part, the Minister of State for Petroleum Resources, Mr Timpire Sylva said that NNPC Limited will operate as a profitable entity that would declare dividends.
He described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian oil and gas industry, opening new vintages for partnerships.
Modupe Gbadeyanka