The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has stated that the company is currently 80% prepared for an Initial Public Offer (IPO). Kyari made this announcement while addressing the Adipec audience and highlighted that in 2021, the NNPCL transitioned into a fully commercial model. He emphasized the company’s need to outperform its private sector peers.
Kyari indicated that the NNPCL is evolving from a state-owned entity into something more expansive. This transition could involve an IPO or the sale of equity to a strategic investor. He stressed the magnitude of this process, which necessitates transformation and alignment with present-day realities.
While the NNPCL is generating revenue, Kyari acknowledged that it still falls short of making sufficient profits. He emphasized the company’s clear strategy for transitioning and diversifying the energy supply for consumers. Kyari highlighted the importance of Nigeria moving away from biomass for cooking toward cleaner natural gas, describing it as an “absolute necessity.”
In addition to addressing the domestic market, the NNPCL has ambitious plans for exports, including the West African Gas Pipeline (WAGP) and the Trans Saharan Gas Pipeline (TSGP). Kyari also mentioned the ongoing work on Train 7 at Nigeria LNG and the potential for Train 8, along with other smaller-scale LNG export opportunities.
Kyari emphasized that the constraint for NNPCL is not a lack of gas but rather a lack of determination. He noted that Nigeria has transformed into a global partner for gas initiatives, and he anticipates Nigeria becoming a hub of gas in West Africa within the next few years.
To support these efforts, Kyari mentioned that Afreximbank is working with National Oil Companies (NOCs) to establish an energy bank, which is nearing completion. However, he did not comment on additional projects from international oil companies (IOCs) in Nigeria or the status of the Seplat Energy deal.