Tinubu’s Gas Reform Promises Impressive Economic Advantages
President Bola Tinubu’s reforms within the energy sector, particularly in the gas division, are poised to deliver substantial benefits to Nigeria’s economy.
Chief Bestman Anekwe, Chairman of NIPCO Plc, expressed his company’s full support for Tinubu’s initiative to elevate gas as a transitional energy source due to its myriad advantages for the economy.
Anekwe, whose enterprise acquired Mobil Oil Nigeria and rebranded it as 11 Plc in 2017, addressed attendees at NIPCO’s 20th annual general meeting over the weekend in Abuja.
He emphasized the Tinubu administration’s renewed dedication to the Compressed Natural Gas (CNG) project, which has facilitated the conversion of numerous vehicles to operate on gas in addition to fossil fuels, signifying a considerable advancement for Nigeria’s economic prosperity.
“Our company identified the potential of CNG over 15 years ago, seeking approval from the Federal Government to establish the necessary infrastructure for motorists to transition to gas. This vision harmonizes seamlessly with President Tinubu’s objective of endorsing gas as a transitional fuel.
“We are confident that the administration’s reforms will unlock a multitude of benefits for Nigeria’s economy and unveil new opportunities for motorists to embrace Compressed Natural Gas (Auto CNG) as a cleaner alternative to conventional fossil fuels,” Anekwe stated.
He assured stakeholders that the group would persist in expanding investments across all operational sectors, striving to achieve its vision of becoming the premier choice in Nigeria’s oil and gas industry for all involved parties.
He highlighted that government initiatives have led to increased crude oil production, with Nigeria’s output reaching 1.5 million barrels per day (bpd) in 2024, up from 1.34 million bpd in 2023, alongside heightened investment and job creation contributing to both direct and indirect employment.
He observed that the government’s naira-for-crude initiative has helped stabilize the local currency and alleviate pressure on foreign exchange for refineries within the country, noting that NIPCO has subsequently adopted novel strategies to capitalize on emerging opportunities while generating value for its stakeholders.
He reassured shareholders of the group’s unwavering commitment to sustainable business growth and strategic investments in its core business lines, with a singular focus on maximizing long-term value for its esteemed shareholders.
He remarked: “By prioritizing targeted investments in our operations, we aim to ensure significant improvement in dividend payouts and drive overall growth, ultimately enhancing shareholder returns and securing the company’s prosperous future.”
He further stated that NIPCO remains dedicated to enhancing profitability through diversified revenue streams across all operational sectors.
“We are committed to advancing sustainability and good corporate governance principles, fostering improved business practices. Through continuous investments in staff development, we are cultivating a culture of exemplary service delivery to further establish ourselves as a generator of long-term value for our shareholders,” Anekwe affirmed.
According to him, NIPCO’s robust financial performance underscores its strategic growth in key revenue segments, positioning it for sustained success in Nigeria’s downstream sector.
He added: “Our resilience and effective revenue strategies have augmented shareholder value.”
Key excerpts from the audited report and accounts for the year ending December 31, 2024, revealed that NIPCO achieved a turnover of N1.458 trillion and a profit after tax of N11.50 billion.
Earnings per share were recorded at N61.26. The meeting authorized a dividend per share of N7, amounting to a total distribution of N1.31 billion. The company retained N10.18 billion to bolster its working capital.
“I would like to take this opportunity to extend my gratitude to all our stakeholders who have contributed to making the year under review a successful one. We firmly believe that our distinguished heritage in the downstream sector, coupled with enhanced performance, will propel us to greater heights in the upcoming year, resulting in increased value addition for our esteemed stakeholders,” Anekwe concluded.
