Mr Mele Kyari, the Group Managing Director of the NNPC, Mallam Mele Kyari, of the Nigerian National Petroleum Corporation (NNPC), has reported that the corporation would be ready for an Initial Public Offer (IPO) by 2024 when its company becomes functional.
Kyari told Bloomberg Television that a lot of arrangements still needed to be put in place before any such move could materialise.
By the provision of the new Petroleum Industry Act (PIA), the NNPC as currently constituted is expected to transition into a fully commercialised business concern in which the public could own shares and take part in its major decisions.
“Surely, it is not what we will do in 2022 or 2023, probably the earliest consideration will be in three years’ time,” the GMD stated.
He reiterated that the corporation’s involvement in the Dangote refinery was to ensure energy security as well as tying down markets for Nigeria’s crude oil.
Speaking on the impact of the PIA on the NNPC, Kyari said the Corporation will now be run in line with the Companies and Allied Act.
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However, he stated that the NNPC may not be able to offer its shares to the public by 2022 or 2023 due to some bottlenecks that have lingered over the years.
“We will be in the position to consider any IPO in three years’ time; that is the provision of the law. But when you want to get ready for IPO, you need to do things different, you need to get your books correct, you need to recapitalize, you need to shape your portfolio and many more things that you have to do until you get IPO ready.
“Surely, it is not what we will do in 2022 or 2023, probably the earliest consideration will be in three years’ time.”
Kyari promises NNPC rolls out IPO In 2024
