NNPC Limited plans IPO by middle of 2023, says Kyari

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    Kyari

    The Chief Executive Officer of Nigerian National Petroleum Company, NNPC Limited, Mele Kyari has hinted of the company launching an initial public offering, IPO,  by the middle of next year.

    An IPO will allow a proper valuation of the national oil company and diversification of the shareholder base to include institutional and retail investors rather than just the Federal Government.

    Kyari told reporters in Abuja on Tuesday that he was convinced that the objective would be realized by middle of 2023.

    “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,” he said.

    It should be noted that as a commercial entity, NNPC Ltd will no longer have access to state funds. Its shares and assets, including oil blocs and refineries are now held by the ministries of petroleum and finance.

    NNPC Ltd operates joint production ventures with oil majors including Shell, Total, ExxonMobil, Chevron and ENI 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.

    The Minister of State for Petroleum, Timpire Sylva stated on Tuesday that NNPC Ltd will operate as a profitable entity that would declare dividends.

     

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