NNPC Plans to Sell Up to 10% Stake to Investors Through Landmark IPO

The Nigerian National Petroleum Company Limited (NNPC) is considering selling between five and 10 per cent of its shares to investors through an Initial Public Offering (IPO), in a move that could open the state-owned oil company to public ownership.

The company’s Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed this in an interview with Reuters on Tuesday, saying the proposed share sale would primarily target Nigerian investors, with a possible secondary listing on the London or New York Stock Exchange.

Ojulari said the proposed listing was aimed at improving transparency and corporate governance rather than raising funds, adding that preparations could take at least the whole of 2027.

He explained that the company was considering a model that would allow Nigerians to own shares in the national oil company without the Federal Government losing operational control.

According to BusinessDay, the proposed offering could become one of the biggest in Nigeria’s capital market history, potentially giving public investors an opportunity to own part of the country’s major energy company.

Ojulari also disclosed that NNPC could consider listing some of its subsidiaries in the future, following a model adopted by the Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.

The proposed IPO comes amid growing investor interest in Nigeria’s energy sector following the recent public share offer by Dangote Petroleum Refinery, which attracted orders worth about ₦6.4 trillion from local retail and institutional investors.

Meanwhile, the NNPC is also exploring opportunities for Chinese companies to acquire equity stakes in some of Nigeria’s smaller refineries, including the Port Harcourt and Warri refineries, which require major repairs.

Ojulari said the company expects at least one of the facilities to resume production within three years, while NNPC would retain at least 10 per cent ownership in any equity arrangement.

The proposed share sale represents another step in efforts to transform NNPC into a commercially driven company following the Petroleum Industry Act of 2021, which converted the former Nigerian National Petroleum Corporation into a limited liability company.

However, the company has yet to announce a formal timetable, share valuation or the specific assets to be included in the proposed public offering.