PIB will encourage oil majors on market listings – SEC

20 April 2012, Sweetcrude, ABUJA – DIRECTOR General of Nigeria’s Security and Exchange Commission, Arunma Oteh, says the planned Petroleum Industry Bill (PIB) will encourage foreign oil majors operating in the country to list on the capital market.

Oteh said in Abuja that the bill, which aims to increase local participation in the oil and gas business, would focus oil firms on when to list on the Nigerian Stock Exchange (NSE).

She urged that foreign oil majors such as Royal Dutch Shell, Exxon Mobil Corporation and Chevron Corporation should have secondary share listings in Nigeria.

Speaking at Reuters Africa investment summit, the capital market’s chief regulator lamented that 80 percent of government revenues come from the oil industry but it makes up only five percent of the stock market.

“We’re in discussion both with the NNPC as well as the oil majors as to listing on the Nigerian Stock Exchange,” Oteh said.

According to her, by persuading the Nigerian National Petroleum Corporation (NNPC), and foreign oil companies to list a portion of their joint ventures, the stock market would better reflect the economy for investors and Nigerians could have greater ownership of oil firms.

About the Author