SEC in Talks With NNPC, Foreign Firms on Possible NSE Listing

By Adedapo Adesanya

The Securities Exchange Commission (SEC) has disclosed that it has started discussions with some big wigs in the oil and gas sector which includes the Nigerian National Petroleum Corporation (NNPC) and the Nigeria Liquified National Gas (NLNG) to list their shares on the Nigerian Stock Exchange (NSE).

This disclosure was made by the acting Director-General of SEC, Ms Mary Uduk, at the World Bank and International Monetary Fund (IMF) annual meetings in Washington DC., the United States.

She noted that the interest of foreign issuers in the Nigerian capital market had increased following the dual listing of two of Nigeria’s leading telecommunication company, MTN Nigeria and Airtel on the stock exchange.

“The primary market has witnessed a new trend in the last one year with the listing of the telecom companies, MTN Nigeria, and also the recent initial public offer (IPO) and dual listing of Airtel,” the SEC boss said.

She noted that some offshore companies have expressing their interest in listing their shares on the stock exchange.

“Consequent of the Airtel IPO, some offshore companies are in discussions with the commission for an IPO that will be dually listed in Nigeria and the United Kingdom,” she added.

Ms Uduk noted that the commission was also look at appropriate measures that could be employed to encourage more major players in the oil and gas sector to list on the NSE.

“It will be great to also have the petroleum sector well represented on our market and having the NNPC will make it greater,” she said.

Adding to this, Ms Uduk said that the commission had reviewed its rules to enable foreign issuers to issue Nigerian Depository Receipts that would be listed on the NSE and other Exchanges.

“As you are very aware, companies must have good governance structure and be run properly for them to be profitable and sustainable,” the acting DG said.

She, however, confirmed that companies had started disclosing their level of compliance to corporate governance practices which had driven up transparency in conducting business.

She said, “We expect to see high level of compliance because we have a national code, now in addition, there are other cases we are looking into that will become public in due time.”

Ms Uduk added that the commission was relying on technology to deepen product innovation in the country.