President Bola Tinubu’s reform in the gas sector of the energy industry would unlock huge benefits for the Nigerian economy.

Chairman, NIPCO Plc, Chief Bestman Anekwe, said the company fully aligns with Tinubu’s goal of promoting gas as a transition fuel because of its numerous benefits to the economy.

Anekwe, whose company had acquired Mobil Oil Nigeria and renamed it 11 Plc in 2017, spoke at NIPCO’s 20th annual general meeting at the weekend in Abuja.

According to him, the renewed vigour of the Tinubu-led government in the Compressed Natural Gas (CNG) project, which has seen several vehicles converted to run on gas alongside fossil fuels, represents a major boost for Nigeria’s economic growth.

“Our company recognized the potential of CNG more than 15 years ago, seeking Federal Government approval to establish the gas infrastructure that allowed motorists to switch to gas. That vision aligns perfectly with President Tinubu’s goal of promoting gas as a transition fuel.

“We strongly believe that the administration’s reforms will unlock numerous benefits to Nigeria’s economy and open a new vista for motorists to adopt Compressed Natural Gas (Auto CNG) as a cleaner alternative to conventional fossil fuels,” Anekwe said.

He assured that the group would continue to upscale investments in all verticals of its operations, in pursuit of its vision of being the first-choice company in Nigeria’s oil and gas industry for all stakeholders.

He outlined that government’s efforts have seen increased crude oil production, with Nigeria’s crude oil production reaching 1.5 million barrels per day (bpd) in 2024, up from 1.34 million bpd in 2023 as well as increased investment and job creation that contributed to both direct and indirect employment.

He noted that the government’s naira – for – crude initiative helped to stabilise the local currency and reduce pressure on foreign exchange for refineries operating in the country, adding that NIPCO subsequently adapted new strategies to capitalise on emerging opportunities while creating value for its stakeholders.

He assured shareholders that the group remains committed to sustainable business growth and strategic investments in its core business lines, driven by a singular focus on maximizing long-term value for its valued shareholders.

He said: “By prioritizing targeted investments in our operations, we aim to guarantee appreciable improvement in dividend payouts and drive overall growth, ultimately enhancing shareholders return and securing the company’s prosperous future”.

He said NIPCO remains focused on enhancing profitability through diversified revenue streams across all verticals of its operations.

“We are committed to advancing sustainability and good corporate governance principles, fostering improved business practices. With continuous investments in staff development, we are building a culture of stellar service delivery to further position us as a driver of long-term value for our shareholders,” Anekwe said.

He pointed out that the 2024 business year was remarkable in the annals of the company’s operations, marking two decades since the technical commissioning of its ultra-modern terminal in Apapa, Lagos.

According to him, NIPCO’s robust financial performance underscored its strategic growth in key revenue segments as it has been positioned for continued success in Nigeria’s downstream sector.

He said: “Our resilience and effective revenue strategies have driven shareholder value”.

Key extracts of the audited report and accounts for the year ended December 31, 2024 showed that NIPCO reported turnover of N1.458 trillion and a profit after tax of N11.50 billion. Earnings per share stood at N61.26. The meeting approved the payment of a dividend per share of N7, representing total payout of N1.31 billion. The company retained N10.18 billion to strengthen its working capital.

“I would like to take this opportunity to appreciate all our stakeholders who have contributed to making the year under review a successful one. We strongly believe that our strong pedigree in the downstream sector, coupled with improved performance, will propel us to greater heights in the coming year, resulting in more value addition to our esteemed stakeholders,” Anekwe said.