NNPC eyes 10% stake sale in London, New York listings

By Diden Abigail Owuntarose

The Nigerian National Petroleum Company Limited (NNPC) is considering an initial public offering involving the sale of between five and 10 per cent of its equity, as the company explores options to strengthen transparency and corporate governance.

NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, discussed the proposed plan indicating that the company could initially list shares on the domestic market, with a possible secondary listing in London or New York.

Preparations for the proposed listing are expected to continue into next year.

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Ojulari said the primary objective of the planned IPO would be to improve transparency and governance, rather than raise funds.

The proposed approach would allow the Federal Government to retain control of the national oil company while opening a portion of its ownership to investors.

The development comes amid ongoing efforts to reposition NNPC following reforms in Nigeria’s petroleum industry.

A successful listing could introduce greater public scrutiny of the company’s financial performance, operations and corporate governance practices.

However, the proposed IPO remains at the preparatory stage, with further details on timing, valuation and the final size of the offering yet to be established.

The plan could represent a significant development for Nigeria’s capital market and the country’s energy sector if implemented.