Initial hopes of the investing public that the proposed successor company of the Nigerian National Petroleum Corporation (NNPC) would go public in line with amended 2021 Petroleum Industry Act appear to have been dashed on Monday as the corporation’s Group Managing Director, Mallam Mele Kyari, said that company may not be ready for an Initial Public Offer (IPO) until 2024.
Kyari, who gave this hint during an interview with Bloomberg Television, explained that a lot of arrangements needed to be put in place before any such move could achieve the set objectives .
The NNPC boss clarified: “Surely, it is not what we will do in 2022 or 2023, probably the earliest consideration will be in three years’ time.”
He also spoke on the corporation’s proposed investments in the Dangote Refinery, stressing that buying 20percent of the company’s equity is to ensure energy security in the country.
Based on the provisions of the new Petroleum Industry Act (PIA), the NNPC as currently constituted is expected to transition into a fully commercialized entity in which Nigerians and other investors could own part of its shares.
