NCDMB Wants More Oil Firms to List on NSE

• NCDMB Wants More Oil Firms to List on NSE

The Nigerian Content Development and Monitoring Board has said it would like to see more oil and gas firms in the country list on the Nigerian Stock Exchange.

The Executive Secretary, NCDMB, Mr Simbi Wabote, said on Tuesday that this would be a game-changer in the operating model of “our oil and gas industry as it gives room for pooling together of funds for growth as well as the empowerment and inclusion of Nigerians in the activities of the mainstay of our economy.”

According to him, most of the companies listed under the oil and gas sector on the NSE are into marketing of petroleum products.

Wabote stated these in Lagos when the management of the NCDMB visited the bourse to perform the closing gong ceremony.

“We would like to see more of the upstream and midstream companies listed on the Exchange. More importantly, we would like to see a major shift in the listing of companies that add value to our hydrocarbon resources in-country such as refineries, petrochemical industries, fertiliser companies, and companies in the Liquefied Petroleum Gas/compressed natural gas value chain,” he said.

Wabote noted that the NCDMB recently launched its 10-year strategic roadmap, which was designed to increase the Nigerian content level in the oil and gas sector from the current level of about 30 per cent to 70 per cent by 2027.

He said, “This means retention of about $14bn in the Nigerian economy out of the yearly spend of $20bn. This target represents huge opportunities for investors in the Nigerian economy.

“We see opportunity to collaborate with the NSE 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.”

According to the NCDMB boss, the vision of the board is to be a catalyst for the industrialisation of the nation’s oil and gas industry and its linkage sectors.

He added, “One of our focus areas is to serve as a catalyst for in-country resource utilisation. To this end, we have taken 30 per cent equity in a 5,000bpd modular refinery. Other similar proposals for the establishment of modular refineries are under review. We reckon that at least 10 per cent of Nigeria’s oil production should be refined using modular refineries.

“As a regulator, we have put in place our exit plans from these investments. 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.”

He stated that the expected partnership would boost activities in the stock market, increase the listing of Nigerian companies on the stock exchange, and help foster businesses with enduring legacies.

Wabote commended the NSE for playing a vital role in the economy by serving as a means of wealth creation and distribution, as well as a source of long-term financing, “even as the businesses listed on the exchange use their products and services to meet the needs of our people.”