Prepare to become NNPC shareholder in 2024, Kyari tells Nigerians

The Nigerian National Petroleum Corporation’s (NNPC’s) Group Managing Director, Mele Kyari, has stated that Nigerians and interested investors will be able to become shareholders in the company within the next three years.

According to him, plans are already on the way as stipulated by the recently signed Petroleum Industry Act to issue its Initial Public Offer to investors.

The NNPC boss disclosed this on Monday during an interview on Bloomberg TV Global Financial News.

Kyari during the interview also said the signing of the PIA means NNPC would now operate in line with the Companies and Allied Act.

“Unfortunately, shares to the public would not be sold by 2022 or 2023 due to certain bottlenecks that had lingered over the years but we will be in the position to consider any IPO in three years’ time; that is the provision of the law,” he told Bloomberg TV.

“When you want to get ready for IPO, you need to do things different. You need to get your books correct; you need to recapitalise; 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.”

You will recall that President Muhammadu Buhari last week declared a profit of N287 billion for NNPC in 2020, with a remark of first time in 44 years.

However, a fact check by Ripples Nigeria reveals that the president’s and NNPC management’s claim of the corporation’s first profit in 44 years is false, as the corporation actually made a profit in 2017.

Read also: FACT CHECK: Did NNPC declare profit for first time in 44 years as Buhari claimed?

On the development of the profit declared, the GMD continued, “Obviously this company is changing very fast and on the fast lane. We just declared profit for the fiscal year 2020.

“We are not getting ready for the IPO tomorrow; that is not exactly, that is not the situation. IPO really means this company is going to be profitable, it has a long trajectory, it has a short-term view of how things can be done better to align with the best practice in the industry.

“We are trying to see how we can relax the existing framework for energy transition that is ongoing all over the world.

“Every country is adjusting its portfolio by doing things differently in a better way and obviously in the long run, this is going to be a very great company and great companies always go for IPO.

“So, this is not something that we are going to do tomorrow. Obviously not. Our new law has made the provision that we can sell shares of this company, but in today’s context, I really say this company is doing great and getting an IPO means that it is going to be better than what it is today.”

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