…to divest equity in modular refinery
Oil and gas firms like refineries, petrochemical and fertilizer companies as well as those in the Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) value chain would gain immensely from listing their shares on the Nigerian Stock Exchange (NSE), the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote said on Tuesday in Lagos.
He spoke when he visited the Stock Exchange and performed the closing gong ceremony, adding that indigenous operating companies and their service counterparts would also benefit from the corporate governance principles demanded from businesses that float their shares on the Exchange.
Listing on the stock market would also change the operating model of the oil and gas industry and enable the pooling of funds for growth, empowerment and inclusion of Nigerians in the activities of the sector, he remarked.
The Executive Secretary noted that oil and gas companies currently listed on the NSE were majorly downstream players and harped on the need for upstream and midstream concerns to also go public.
He stated further that “we see opportunity to collaborate with the Nigerian Stock Exchange to increase the depth and breadth of listings using our 10-year strategy as a driver. For us in the Board, we have commenced multiple strategic initiatives to bring the roadmap into fruition.”
He also informed that the Board took 30 percent equity in a 5,000 barrels per day modular refinery with other similar proposals under review, the goal being to refine at least 10 percent of Nigerian oil production using modular refineries.
Confirming that the Board had an exit strategy from these investments, Wabote added, “we see opportunity to divest such equity via the Nigerian Stock Exchange so that Nigerians and other investors can be part owners of such enterprises.”
Such partnerships between the Board and the NSE will boost activities in the stock market, increase the listing of Nigerian companies on the stock exchange and foster businesses with enduring legacies, he said.
The Executive Director, Regulations, NSE, Ms. Tinuade Awe represented the Chief Executive Officer, Mr. Oscar Onyema at the event and commended NCDMB for the remarkable achievements it had recorded in the implementation of the Nigerian Content Act in the oil and gas industry. She noted that the Board had built significant human and infrastructural capacity, hence several Nigerian companies and personnel have begun to play leading roles in the operations of the industry.
The Executive Director confirmed that the NSE wanted many indigenous oil producing and service companies to emulate SEPLAT Petroleum in listing on the Exchange. “We want them to know of the many opportunities they stand to gain, such as being able to raise capital among other things.” She noted that the NSE also provides capacity building programmes on access to the capital market, financial literacy, investment opportunities, corporate governance among others.