The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Stock Exchange (NSE) are partnering to open up opportunities for significant players to invest in Nigeria’s upstream and midstream oil sectors.
The NCDMB headquartered in Yenagoa, Bayelsa State has the mandate to be the catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors.
Armed with this vision, NCDMB visited the NSE Tuesday in a bid to align more upstream and midstream oil companies to the Nigerian capital market.
“I think if we can get the upstream and midstream sector to be part of the capital market there is potential for the market to compete globally. This is because oil is a global commodity that everybody trades on and they talk about it quite a lot” said Simbi Wabote, executive secretary, NCDMB.
According to Wabote, NCDMB has begun investing in the modular refinery space where it recently took equity of 30 percent to develop a 5,000-barrels per day modular refinery.
“As part of that investment and in collaboration with the stock exchange, once production starts in that refinery we’ll tend to divest our 30 percent and this probably will be put before Nigerians to buy NCDMB out, seeing that it will be listed on the stock exchange,” Wabote said.
Adding, “that’s our own little contribution in wanting to ensure participation in the upstream and downstream sector of the oil and gas.”
Speaking on the significance of the partnership, Wabote said that, “Local content itself is not just about being local it’s about bringing out the local and international visibility in terms of what we do. The NSE is a veritable platform to bring about that visibility”.
He further noted that their visit is to seek collaboration with the stock exchange in future investment drive in terms of raising the game in the oil and gas sector.
For companies that bought international oil company’s (IOCs) asset and are doing well, the NCDMB boss exemplified Seplat as success stories.
“I’m sure with the example and success Seplat’s has achieved within the stock exchange and the corporate governance principles that have been brought to bear, I sincerely believe that other companies will be looking at such opportunities he said”
Wabote said he has already noticed some upstream companies making a pitch to the NSE, indicating that there will be potentially a lot more movement in the stock exchange as regards the oil and gas space in the nearest future.