Petroleum Industry Act

11Plc Offers Optimism For Future Deregulatory Action

The major oil marketer 11Plc (Formerly Mobil Oil Nigeria) is confident that the outlook for 2023 will be better due to expectations for the full implementation of the Petroleum Industry Act (PIA) and the deregulation of the downstream sub-sector, which is expected to begin in June 2023.

Ramesh Kansagra, chairman of the board of directors, who made this announcement at the 45th annual general meeting of the firm held in Abuja, said: “The activities in Nigeria’s downstream sector in 2023 are expected to come from the full implementation of the Petroleum Industry Act as deregulation is scheduled to take off by June 2023. The success of the implementation process will depend on proper planning and implementation.”

“Indeed, Nigeria has been predicted to be a market to watch this year because of the proposed opening of a major refinery, the change in government, and the strategic decision that must be made on ending fuel subsidies.”

“In order to keep the company on the path of sustainability, we are committed to the continued upgrade of our facilities. Our investment in Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) will be sustained and expected to impact positively on our bottom line at the end of the year,” he said.

Kansagra stated that the International Monetary Fund (IMF) had predicted that one-third of the global economy will be in recession this year, while overall, global growth is forecast to decline from 3.2 percent in 2022 to 2.7 percent in 2023 while inflation will trend upward.

He said that as the year went on, the business will make an effort to weather the storm.

The greatest asset of the organization, according to him, is its workforce.

“We are committed to ensuring the right level of employee engagement and motivation abound within our company. The well-being and safety of our employees remain a key focus for us. I commend their commitment and hard work, which impacted positively on the company’s performance.”

Noting that the current global labor migration and staff turnover would continue to be a problem for human capital, he said: “We believe that the incoming government’s policies will create opportunities for local talents that will help stem the brain drain. In spite of the dire economic outlook, the future holds great promises for our dear company, as we consolidate our achievements.”

According to him, the Board of Directors has recommended a dividend payout of N3 billion, or N8.50K per ordinary share of 50 kobo, payable subject to the approval of shareholders and the deduction of withholding tax at the applicable rate.

“The dividend payout of 850k per share under the current difficult business circumstances shows the company’s commitment to positive return on investment to its shareholders. The Board is committed to continually deliver outstanding returns to our shareholders,” he concluded.

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