The Nigerian National Petroleum Corporation (NNPC) is considering an Initial Public Offering (IPO) after declaring a profit, the first in its 44-years of operation.
“A listing would draw on the experience of Saudi Aramco, the Saudi Arabian oil giant that listed in 2019,” Bloomberg quoted Group Managing Director (GMD) Mele Kyari as saying at a briefing in Abuja on Thursday.
Kyari added: “There is no date on it, but there is a possibility of doing this.”
A clause in the Petroleum industry Act recently signed by President Muhammadu Buhari enables the NNPC to offer shares to the public.
The President had on Thursday announced the declaration of a Profit after Tax (PAT) of N287billion in the 2020 financial year by the NNPC.
The announcement, according to the President was in fulfillment of an earlier pledge by the Federal Government of Nigeria to publicly declare the financial position of the NNPC.
This was done after the completion of the statutory Annual Audit exercise for Year 2020.
“The NNPC losses were reduced from N803 Billion in year 2018 to N1.7 Billion in year 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history,” the President said.
He further directed the NNPC to timely publish the Audited Financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.
The GMD however noted that because the Corporation recorded profit in the year 2020, doesn’t mean it is ready for IPO, adding it is a very long and highly tedious process.