List reformed NNPC on stock exchange – Osunkeye

A renowned industrialist, Chief Olusegun Osunkeye, has advocated that Nigerian National Petroleum Company Limited, just breathing its fresh air as a private enterprise, should be listed on the local stock exchange.

Taking the company public will enable it to operate transparently and profitably, Osunkeye said.

He spoke as the chairman of the occasion of the investiture of Chief Mr Oluwole Adeosun as the 12th President of Chartered Institute of Stockbrokers (CIS) in Lagos at the weekend.

NNPC, formerly a state-owned corporation, was unveiled last week by President Muhammadu Buhari as a private company, following the change of its status after the passage of the Petroleum Industry Act.

 “The new company can take advantage of Initial Public Offering (IPO) to raise capital to boost its operations and generate tax for the government,” Osunkeye said.

“The federal government is to take a second look at the introduction of Capital Gain Tax (CGT), which the mode of implementation is not yet clear. The obnoxious tax increases the cost of funds to firms and also reduces the value of capital appreciation to shareholders. The government can encourage startups to list on the securities market by granting tax holidays of about three years to those companies and patronising their products and services,” said Osunkeye, who has straddled the Nigerian corporate world for decades. Among other positions he has held, he worked at Nestle Nigeria Plc. from 1972 rising to be the Managing Director/Chief Executive Officer for eight years, from 1991-1999.

“This year’s investiture comes at a critical period in the global economy where countries, including advanced economies, are under pressure to tackle rising inflation and at the same time maintain price, stability, a double-edged sword. The ultimate challenge is how the government, other capital market regulators, and operators can work harmoniously to encourage investors,” Osunkeye noted.

Commenting on the activities of the CIS, he lauded the governing council and management of the Institute for ensuring quality training for the members to enhance their service delivery.

In his acceptance speech, Adeosun articulated six pillars driving his tenure among others. He assured that his administration would build on the solid foundation laid by the founding fathers of the institute and successive presidents.