The Chief Executive Officer, Nigerian Stock Exchange (NSE) Mr Oscar Onyema has lauded NIPCO’s 60 per cent acquisition stake in Mobil Oil Nigeria (MON) , while assuring an effective strategic developmental partnership.
Onyema gave the assurance during a courtesy visit with its management team to NIPCO’s company in Apapa, Lagos on Monday.
According to him, NIPCO 60 per cent acquisition stake in Mobil Nigeria Company was a great development for the industry.
“An industry that is expanding and imparted greatly to the growth of the oil and gas sector like NIPCO needs to be commended growing the sector and boosting the local content development.
“It is great deal for Nigerian own investment company.
“So we think it is a good development for the company, it also give great potential for indigenous company to get global visibility.
The NSE boss said that “we are indeed impressed with NIPCO track record on safety and how serious they took safety very important.
“I most said that we are in pressed with NIPCO’s strategic and post-acquisition of the MOBIL entity as you know that the MOBIL brand will run separately as an entity from the NIPCO brand,” he said.
Onyema, however urged the management to NIPCO to reconsidered enlisting NIPCO company on the Nigerian Stock Exchange, adding that it would give more credibility and attracted more shareholder to the company.
According to him, there are so many benefit that are attached to a companies that is listed on the NSE, we urged NIPCO to embrace being listed at the NSE.
“One of the benefit are given flexibility to raise capital to help in enhance corporate governance, to make it easier to raise fund in the banking industry, to give sustainability in terms of fund rising among others benefit.
In his remarks, the Managing Director of NIPCO, Mr Venkataraman Venkatapathy lauded NSE CEO and its management team visit to the company, adding that the company was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) on 2001 as a Private Limited Liability Company to participate in the distribution of White Petroleum Products business across the nooks and crannies of the Nation.
He said that the company which deal with import Automotive Gas Oil (AGO) and Premium Motor Spirit (PMS) directly into the country and distribute the products through its members successfully across the nation.
“The transition period will also enable NIPCO Plc to effectively manage a smooth and successful completion of the transaction. NIPCO considers this acquisition an important synergy.
“It is part of our strategic move to support NIPCO’s continuous growth and expansion of its Nigerian retail footprint. We are confident of adding tremendous value to MON and likewise MON will add huge value to NIPCO.
“In furtherance of this value addition, NIPCO will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under branding licence(s) from ExxonMobil,” Ventakapathy explained.
“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset (MON), we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” Ventakatapathy added.
According to him, NIPCO’s expansion reinforces its implicit confidence in Nigeria’s future.
He noted that the Nigerian economy still provides a robust and premium return on investment, adding that his company was privileged to have been given this opportunity by ExxonMobil on its home ground.
“To our shareholders and stakeholders, we say welcome to a new dawn. A new era that will usher in stability, prosperity, sustainability and growth,” Ventakatapathy said.