The Nigerian Content Development and Monitoring Board (NCDMB) has stressed the need for firms that constitute hydrocarbon resources in-country such as refineries, petrochemical industries, fertilizer firms to list on the Nigerian Stock Exchange (NSE).Hydrocarbons are organic compounds that are made of only hydrogen and carbon atoms. They are found in many places, including crude oil and natural gas.
The Executive Secretary, NCDMB, Engr. Simbi Wabote made the call when the management of the board visited the NSE to perform the Closing Gong ceremony in Lagos on Tuesday.He noted that most of the companies listed under the oil and gas sector of the NSE are into marketing of petroleum products.
Therefore, he sought that upstream and mid-stream companies be listed on the exchange to enable citizens participate in these firms’ wealth creation.“We will like to see more of the upstream and mid-stream companies listed on the exchange. More importantly, we will 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, fertilizer companies, and companies in the liquefied petroleum gas/compressed natural gas value chain,” he said.
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According to the NCDMB boss, this will be a game-changer in the operating model of the oil and gas industry, as it would give room for pooling together of funds for growth as well as the inclusion of the people in the activities of the mainstay of our economy. Wabote commended the NSE for playing a critical role of wealth creation, wealth distribution, and 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.
He explained that the board recently launched its 10-year strategic roadmap 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.
“This means retention of about $14 billion in the Nigerian economy out of the yearly spend of $20billion. 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,” he added.He pointed out that the vision of the board is to be a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.
“One of our focus areas is to serve as a catalyst for in-country resource utilization. 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 Nigerian 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 NSE so that Nigerians and other investors can be part owners of such enterprises.”
Source: G Business
