The Nigerian National Petroleum Company (NNPC) Limited is considering selling between 5% and 10% of its shares through an initial public offering (IPO) as the state-owned energy company moves towards opening its ownership to public investors.
NNPC Group Chief Executive Officer Bashir Bayo Ojulari disclosed that the company would likely prioritise a listing on the Nigerian Exchange Limited (NGX) with London or New York under consideration for a possible secondary listing.
The proposed transaction would mark a significant change in the ownership structure of Nigeria’s national oil company and provide an opportunity for institutional and retail investors to acquire shares in one of the country’s largest energy businesses.
According to Ojulari, preparations for the IPO are expected to continue through at least 2027 as the company works towards meeting the financial, operational and regulatory requirements associated with a public listing.
The initial offering could involve between 5% and 10% of NNPC’s equity, although the company has not announced a definitive transaction size, valuation, offer price or listing date.
NNPC could also consider listing individual subsidiaries after the initial offering, potentially creating additional investment opportunities across its upstream, midstream and downstream operations.
The proposed listing forms part of the company’s transition towards a commercially oriented energy business following its incorporation as a limited liability company under the Petroleum Industry Act.
The legislation established the framework for NNPC to operate as a commercial entity with greater emphasis on profitability, corporate governance and financial accountability.
A successful IPO would subject the company to additional disclosure obligations and scrutiny from public shareholders, including requirements relating to financial reporting and corporate governance.
For Nigeria’s capital market, the transaction could significantly expand the range of investment opportunities available to domestic and international investors.
The eventual impact would depend on NNPC’s valuation, the proportion of shares offered, investor demand and the company’s financial performance at the time of listing.
A domestic listing could also support the government’s efforts to deepen Nigeria’s capital market by attracting long-term investment into a major national energy business.
However, the proposed transaction remains at the planning stage, and no formal offer timetable has been announced.
Investors will be watching for further disclosures on NNPC’s financial position, valuation, shareholder structure and the regulatory approvals required before the company can proceed with an IPO.