NNPC to Explore Capital Raising Options at Stock Exchange

By Sodeinde Temidayo David

The Nigerian National Petroleum Corporation (NNPC) has expressed its willingness to work in partnership with the Nigerian Exchange Limited (NGX) for a short term on the option of financing.

This was made known by the Group Managing Director of NNPC, Mr Mele Kyari, during the visitation of the stock exchange team to his office in Abuja recently.

Mr Kyari noted that the recent signing of the Petroleum Industry Act (PIA) has opened up unique opportunities to create value for shareholders and there is a need to access capital to build on NNPC’s positioning as the largest corporation in Africa and expand capacity.

“We will, therefore, be pleased to collaborate with NGX on the short-term and long-term financing options available in the market and I must thank you for taking the time to visit us today to take this conversation further,” he said.

Accepting the collaboration request, the Chairman of NGX, Mr Abubakar Mahmoud, said the organisation was always interested in developing strong relations with notable institutions such as NNPC and was delighted at some of the recent developments of the state-owned oil agency.

“We would, therefore, like to congratulate you on the successful signing of the Petroleum Industry Act which we are confident will transform the sector and in turn, open up opportunities for both NGX and NNPC to explore going forward,” he added.

Also speaking, the Chief Executive Officer of NGX, Mr Temi Popoola, lauded the management of NNPC for the remarkable efforts at improving transparency, accountability and performance in the corporation.

“Today, we are delighted to have the opportunity to explore several capital market-related financing topics with the NNPC, including a potential listing on the exchange.

According to Mr Popoola, the NNPC listing will have tremendous positive benefits for the Nigerian capital markets and will go a long way in deepening the current transformation that is occurring at the organisation.

He added that the capital markets have presented a credible opportunity for the NNPC to meet its short and long term financing plans as NGX is working with other stakeholders to facilitate this.

In 2021, NGX has raised over N6.71 trillion in financing across fixed income and equity asset classes.