NNPC clarifies reports on sale of shares

The Federal Government has not yet made a decision on whether to sell shares of the Nigerian National Petroleum Company Limited (NNPC) to the general public through an IPO.

The NNPC missed the deadline for the start of its initial public offering, according to a report published online on Wednesday. The article said that the information was included in the national oil company’s most recent quarterly report.

On July 19, 2022, the oil company changed from a state-run corporation to a private enterprise in compliance with the Petroleum Industry Act.

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NNPCL’s Group Chief Executive Officer, Mele Kyari, has announced that the business will be prepared to undertake an IPO by mid-year in 2023 during the transition ceremony in Abuja.

During an IPO, shares of a company are sold to institutional investors looking to purchase stock in that specific business.

The Chief Corporate Communications Officer of NNPCL, Garba-Deen Muhammad, responded that the government made the decision, not the oil company, when he was questioned by the media on Thursday about the reason for the IPO declaration’s delay and whether the oil company had set a new date for the public offering.

The amount NNPC aimed for or anticipated receiving from the exercise as well as the price at which the share was anticipated to trade were also questioned of him.

Other questions include which investment banks were underwriting the offering, and whether ordinary Nigerians could buy the shares, or whether it was meant for only accredited and institutional investors.

But in a very brief response by Muhammad, he said, “Shareholders have not decided. It’s not an NNPC decision. Government will decide when to sell, how much to sell down and at what value.”