Beginning on Friday, July 1, the Nigerian National Petroleum Corporation (NNPC) will undergo a makeover.
The entity, henceforth, will be referred to as the Nigerian National Petroleum Company Limited, rather than a corporation.
The transformation will give Nigerians a chance to become shareholders in NNPC which has been a government company for 45 years.
NNPC is one of Africa’s largest state Oil & Gas company with a presence in every area of the Oil and Gas value chain.
The change is in accordance with the Petroleum Industry Act’s regulations (PIA).
On July 19, President Muhammadu Buhari will officially introduce NNPC Ltd.
NNPC is doing all possible to ensure compliance with the provisions of the Petroleum Industry Act (PIA) in terms of rules and deadlines for action, according to Malam Mele Kyari, Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC Ltd.
Kyari stated that the new business will be active when the Ministers of Petroleum and Finance transfer verified assets from the Corporation to the NNPC Ltd.
He said that the new NNPC Ltd. needed to have faith in the firm’s asset base if it wanted to do business with international brands because of the quantity of assets available and the new fiscal regime, positioning it to become Africa’s top energy company.
Kyari, stated in September 2021, that the company’s Initial Public Offer (IPO) to investors can only be made within the following three years.
Speaking to Bloomberg TV, Kyari said;
We will be in the position to consider any IPO in three years’ (2024) 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 recapitalise; you need to shape your portfolio and many more things that you have to do until you get IPO ready.