A Statement by Managing Director / Chief Executive Officer, NIPCO PLC, Mr. Suresh Kumar on the Occasion of the Company’s 20th Annual General Meeting in Abuja.
It is with great pleasure that I am addressing you today at the 20th Annual General Meeting of NIPCO Plc holding at the Abuja Continental Hotel, FCT, Abuja. The statutory meeting of shareholders provides an opportunity for the executive management of your Company to review the activities of the organization for the financial year ending December 31st, 2024.
This gathering of esteemed shareholders also allows investors to evaluate the performance of the firm and offers feedback on the journey so far in the two decades of operation in the nation’s Oil and Gas industry.
INDUSTRY REVIEW – 2024
The year under review brought several challenges and opportunities to Nigeria’s hydrocarbon industry. Notable reforms, including the 2021 Petroleum Industry Act, have reshaped the energy landscape by providing clearer fiscal terms and operational autonomy to NNPC Limited. The Act facilitated downstream deregulation, promoting competition and value. Presidential initiatives in 2024 introduced fiscal incentives for gas development, streamlined contract processes, and addressed issues such as oil theft and sabotage.
The commencement of operations by the domestic refineries, producing refined products above 650 million barrels per day, has created more employment opportunities. Equally the resumption of operations at the Port Harcourt Refining Company and the Warri Refining & Petrochemical Company also marked significant milestones in improving local refining capacity and reducing reliance on imports.
The introduction of CNG as a fuel source aligned with the government’s energy diversification drive which has received extensive support from consumers across the country. The PCNG’s palliative measures, such as free CNG lots and mobile refilling stations, promote the “Switch to CNG” campaign and offer on-demand CNG delivery services.
COMPANY PERFORMANCE – A REVIEW
The past two decades of operations have highlighted the company’s substantial contributions to Nigeria’s downstream sector of the Oil & Gas industry. As an industry operator, we are committed to serving our stakeholders by continuously investing in human capital development and advanced tools and technology to support our growth trajectory.
After over two decades of meeting the needs of all stakeholders in the Oil & Gas industry, NIPCO has achieved giant strides in the industry. While we have not yet reached our ultimate goal, we have accomplished remarkable achievements and are motivated to continue progressing. Twenty – twenty four marks twenty years of our operations, underscoring the company’s prominent role in Nigeria’s downstream sector of the Oil & Gas industry.
HUMAN CAPITAL
We strive to enhance our workforce’s capabilities to maintain relevance in their various roles within the company. The dedication and perseverance of our employees have been instrumental in achieving our goals throughout our operations. We hope that the outstanding contributions and commitment of our workforce will continue to drive the company towards its objectives.
CORPORATE SOCIAL RESPONSIBILITY ( CSR)
Your company’s focus on corporate investment in host communities and beyond remains strong. Beyond financial performance, we believe that our social investment policy should create lasting positive impacts locally and nationally.
LOOKING AHEAD
NIPCO is committed to celebrating its achievements by embracing innovative techniques, adhering to industry best practices and building capacity to meet growing challenges in the sector. We aim to optimize our processes, procedures and reinforce internal controls to ensure continuous operations. We are poised to continue to enhance our brand visibility across the nation through standout service outlets while empowering our workforce to achieve higher standards.
We intend to increase investment in all our business verticals as part of our operations expansion and belief in the resilience of the Nigerian economy. We will be leveraging on the full deregulation of the downstream sector to boost the company’s retail expansion drives across the country.
Our partnership with the government to bolster CNG infrastructure nationwide will be intensified in 2025 and beyond, to enable more motorists and industrial users to benefit from the economic and environmental benefits of gas utilisation. We anticipate that the shift to cleaner energy sources will positively impact the economy by reducing reliance on fossil fuels, thus benefiting the nation’s environment.
Through our subsidiary, NIPCO Gas Ltd, we look forward to ongoing collaboration with the Presidential Compressed Natural Gas Initiative (PCNGI), which has made significant progress in expanding access to auto CNG for transportation. President Bola Ahmed Tinubu’s proactive push for gas as an alternative reflects global trends toward cleaner fuels, and is appropriate for Nigeria given its abundant gas resources.
In the area of Liquefied Natural Gas (LPG), our leadership role will be further strengthened with the effective commencement of newly constructed infrastructure aimed at increasing storage capacity and ease of loading at competitive rates.
In our hospitality business, Abuja Continental Hotel, formerly Abuja Sheraton Hotel which we acquired majority shareholding in has continued to make its mark in the industry .The ongoing renovation of the hotel has continually put it ahead of its peers as it is now hotel of first choice for Meetings, Incentive, Conferencing and Events (MICE) related activities. Our hospitality offerings remain top-notch and guest delight.
We will continue to leverage our human and material resources to seize opportunities within the industry, driving growth and profitability with a deep commitment to consistently reward our shareholders with dividends.
APPRECIATION
We appreciate the unwavering support of our stakeholders including Ministries, Departments and Agencies (MDAs).who have stood by us for the past two decades. We remain dedicated to realizing our vision by striving for excellence in service delivery across all operations.
Your unparalleled support has been crucial to our journey in the downstream sector of the nation’s hydrocarbon industry, and we extend our sincere gratitude for your continued trust as we embark on another decade of service.
Special recognition goes to the Board of Directors, some of whom are pioneer directors, and the dedicated workforce of the company. Their efforts remain fundamental to the company’s diligent service to the country.
Our thanks also go to our customers, whose contributions have been essential to our growth.
Best regards,
Suresh Kumar
Managing Director/ CEO
NIPCO Plc
