NIPCO PLC: DELIVERING VALUE, DRIVING GROWTH, AND EXPANDING HORIZONS
ADDRESS BY THE MANAGING DIRECTOR OF NIPCO PLC, MR SURESH KUMAR AT THE 22ND ANNUAL GENERAL MEETING (AGM) HELD AT ABUJA CONTINENTAL HOTEL, FCT, ABUJA.
Distinguished shareholders, regulatory agencies, members of the press, and esteemed guests, I am honoured to present this address at the 22nd Annual General Meeting of NIPCO Plc. As we reflect on the financial year 2025, I am proud of the resilience and adaptability demonstrated by our management and staff in the face of stiff competition and unpredictable market dynamics. Despite these challenges, we have maintained our position as one of the leading downstream operators in the country, reinforcing our reputation for reliability and delivery of superior service.
Business Environment
The global energy sector is undergoing significant transformations, driven by geopolitical tensions, and the accelerating march toward energy transition. Nigeria, as a major player in the global energy market, is navigating these challenges and opportunities to ensure sustainable growth and development.
Nigeria’s industry developments are framed by two significant milestones. Firstly, the recent comprehensive deregulation of Nigeria’s downstream sector and the transition to a market-based gasoline pricing system represent a fundamental shift in the market trajectory in the business ecosystem. Deregulation introduces new opportunities for competition, transparency, and efficiency, while market-based pricing establishes a pathway for stability and equitable value distribution across the supply chain. There is no gain saying to inform that the policy also ushers some challenges which respective companies have to devise appropriate anecdote to mitigate.
We also acknowledge the commissioning of the Dangote Refinery, a significant industrial project with a refining capacity of 650,000 barrels per day. The facility represents an important addition to Nigeria’s refining infrastructure and is expected to contribute to regional energy supply and economic activity across West Africa.
These two milestones collectively will shape industry dynamics for years to come, influencing everything from refining operations and distribution to market competition and consumer access. Nonetheless, as stakeholders advocate for the complete deregulation of the sector, permitting operators to source products independently while adhering to quality assurance standards is imperative.
Your Company has made significant strides in strengthening Nigeria’s hydrocarbon industry, with a focus on indigenous capacity and sustainable growth. Our recent acquisition of a stake in Savannah Energy Plc marks a major milestone in our strategic growth trajectory, positioning us for expansion in the upstream sector and diversifying our portfolio.
Human Capital</br.
Our human resource remains the driving force behind our achievements. We invest in their development, nurture their talents, and empower them to excel and deliver value. This focus on human capital has yielded a resilient, adaptable, and high-performing workforce, enabling us to navigate challenges and seize opportunities.
Strategic Business Units (SBUs):
White Oil and Liquefied Petroleum Gas [LPG] Division
NIPCO Plc has sustained its competitive edge in Nigeria’s downstream petroleum sector through disciplined expansion and operational resilience. Over the past year, the company increased its branded retail footprint to over 400 outlets nationwide for white products including petrol and diesel. Several additional stations are currently at incubation stage ahead of inauguration, reinforcing NIPCO’s strategy to deepen market penetration and improve product availability across key corridors.
Despite persistent challenges in the regulated downstream environment, the division has maintained steady supply and service standards, consolidating NIPCO’s position as a trusted fuel distributor. We will continue to expand our white oil station network and strengthen our footprint generally.
The LPG Division focuses on the supply and distribution of cooking gas for household and commercial use. NIPCO operates a robust value chain that supports bulk sales to company-owned skids located across the country, as well as to private companies within the LPG sector.
During the year under review, the division maintained strong performance backed by a combined storage capacity of about 19,500 metric tonnes and 10 loading bays capable of trucking over 4,000 tonnes daily. This infrastructure enables NIPCO to ensure steady supply and reach, making LPG more accessible to millions of Nigerians seeking a cleaner alternative to traditional cooking fuels.
NIPCO Gas Limited Compressed Natural Gas & Piped Natural Gas Operations NIPCO Gas Limited is a pioneer and market leader in Nigeria’s compressed natural gas and piped natural gas segments. The company currently operates 25 Auto CNG stations nationwide and is constructing an additional 20 stations to expand access across the country. To date, NIPCO Gas has facilitated the conversion of over 8,000 vehicles to run on CNG, supporting the shift toward cleaner and more cost-effective transportation.
Through its strategic partnership with NNPC Gas Marketing Limited ( NGML ) and the Presidential CNG Initiative, NIPCO Gas is rolling out 35 additional CNG stations to serve intra-city and inter-city transport networks, with a target of supporting over 200,000 vehicles daily. The division also holds Gas Distribution Licences for Ibadan, Benin City, and the Lekki Free Trade Zone, granting it 25-year exclusivity to develop gas infrastructure in these regions. This expansion aligns with the Federal Government’s policy to promote natural gas as an alternative auto fuel and to leverage Nigeria’s abundant gas reserves for cleaner, more affordable, and sustainable transportation.
Upstream Division:
Strategic Investment in Savannah Energy Plc
A defining milestone for NIPCO in the year under review is its strategic entry into the upstream and midstream gas sector through a significant equity investment in Savannah Energy Plc. NIPCO initially acquired approximately 19.4% of Savannah’s enlarged share capital through a £28.7 million transaction involving primary subscription and secondary market purchases. The company has since moved to further increase its stake to about 25%, with potential to reach 26.5% upon completion of additional secondary market acquisitions.
Hospitality Division
Abuja Continental Hotel. Through its subsidiary 22 Hospitality Ltd, NIPCO Plc has established a strong foothold in Nigeria’s hospitality sector with the acquisition of a majority stake in Capital Hotels Plc, owners of Abuja Continental Hotel. The hotel, formerly Sheraton Abuja, is undergoing a phased renovation and repositioning to restore it as a premier luxury destination in the capital.
NIPCO’s vision is to align the hotel with global service standards while contributing to Nigeria’s hospitality industry through skills development, including plans for a Hospitality Academy in partnership with the Federal Government.
Looking ahead to 2026, we are committed to building on our strengths and leveraging our core values of integrity and dedication to drive growth and profitability. We will continue to prioritize your interests, leveraging opportunities, managing risks, and driving sustainable growth in the country’s energy sector.
As we gaze into the future, we remain committed to building upon and exploring new growth opportunities. NIPCO will continue to invest in CRITICAL / Relevant / Requisite / infrastructure across its various business verticals in the country there by not only growing the company but also will endeavour to touch the lives of Nigerians.
Appreciation
I would like to express my gratitude to our Board, management team, and staff for their hard work and commitment to excellence. We appreciate the guidance and support of our stakeholders, regulatory agencies, and government bodies. We thank our loyal customers for their continued patronage and loyalty. And to our esteemed shareholders, we express our gratitude for your trust and confidence in NIPCO Plc.
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Together, we will continue to drive growth, innovation, and excellence in the country’s energy sector.
Thank you.
Suresh Kumar
Managing Director/CEO
NIPCO PLC
