The Nigerian National Petroleum Company Limited (NNPC) has advanced preparations for its proposed initial public offering (IPO) with management implementing changes to its financial reporting and corporate governance structures to meet the requirements of a public listing.
NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed the progress during an interview with Bloomberg on Tuesday, October 13, 2026.
According to Ojulari, the company has completed its baseline assessment and is addressing deficiencies identified by advisers involved in preparing the business for a potential listing.
The exercise is expected to strengthen financial disclosure, accountability and internal governance arrangements, which are important considerations for institutional investors assessing companies seeking to raise capital through public markets.
However, NNPC has not announced a confirmed IPO date, share price, valuation or the proportion of equity that could eventually be offered to investors.
The latest development comes as Nigeria seeks to expand the role of its capital market in financing major businesses and attracting long-term domestic and foreign investment.
Unlike companies operating in a single industry segment, NNPC maintains interests across several parts of the petroleum value chain, including exploration and production, natural gas, pipelines, refining, petroleum trading and retail distribution.
This diversified structure creates additional requirements for financial reporting, asset valuation and the presentation of business performance to prospective shareholders.
Investors seeking exposure to NNPC would need sufficient information to assess the profitability, capital requirements and liabilities associated with its different operations.
The company’s readiness assessment could therefore influence whether its eventual public offering covers the existing corporate structure or requires changes to the composition of its businesses.
Ojulari has indicated that management may need to evaluate certain assets and determine whether they should be consolidated, separated or exited as preparations progress.
Such decisions could have important implications for the company’s valuation because investors generally assess the quality of earnings, future cash flows and risks attached to the assets included in a public offering.
NNPC’s latest audited financial statements provide an indication of the scale of the business that could eventually enter the capital market.
For the financial year ended December 31, 2025, the company reported profit after tax of N7.2 trillion, representing a 33% increase from the preceding year.
Operating cash flow rose by 16% to N12.8 trillion, while earnings before interest, taxes, depreciation and amortisation increased to approximately N18 trillion.
Revenue, however, declined by 23.5% to N34.5 trillion from N45.1 trillion in 2024, reflecting changes in crude oil prices and petroleum product sales.
The contrasting movements in revenue and profitability highlight the importance of examining the company’s earnings structure rather than relying solely on headline profit figures.
NNPC also declared a dividend of N5.8 trillion for the 2025 financial year, underscoring the scale of distributions associated with its existing ownership structure.
For prospective public shareholders, future dividend expectations would depend on the terms of the offering, investment requirements, debt obligations and the company’s eventual capital allocation policy.
The proposed IPO is linked to the Petroleum Industry Act of 2021, which established the framework for transforming the former state petroleum corporation into a commercially oriented limited liability company.
The legislation provides a basis for transferring government ownership interests under prescribed conditions, although an eventual public offering would still require the necessary shareholder decisions and regulatory approvals.
In August 2026, President Bola Tinubu reaffirmed the Federal Government’s intention to reform NNPC and pursue a listing on the Nigerian Exchange.
The government views the proposed transaction as part of efforts to deepen the domestic capital market, attract investment and broaden participation in major Nigerian enterprises.
NNPC had previously outlined a roadmap targeting a possible listing by 2028, but management clarified in September that no definitive date had been approved.
Ojulari explained that the final decision to proceed with an IPO rests with the company’s shareholders, while management is responsible for ensuring that the business meets the required standards.
The distinction means that completing governance reforms and financial assessments does not automatically translate into an immediate public offer.
NNPC must also determine how its assets and liabilities will be presented, what ownership structure will be offered and whether market conditions support the transaction.
The company’s existing financial obligations, including financing arrangements linked to future crude oil deliveries, are another consideration for investors evaluating its long-term cash-generating capacity.
Such obligations would need to be assessed alongside operating cash flow, capital expenditure commitments and future investment plans.
A successful listing could provide NNPC with an additional route to raising capital while introducing greater public scrutiny of its financial performance and management decisions.
Public shareholders would expect regular financial disclosures, clearly defined governance responsibilities and greater visibility into how the company deploys capital.
For the Nigerian Exchange, the potential admission of a company of NNPC’s scale could also broaden the range of energy-sector investment opportunities available to domestic and international investors.
Nevertheless, the size of any eventual listing and its effect on market capitalisation cannot be determined until the company publishes an offer structure and valuation.
NNPC’s immediate priority remains the completion of its governance and reporting reforms.
The next significant development will be whether management can resolve the outstanding readiness requirements and present shareholders with a clearly defined proposal for taking the company public.