The Nigerian National Petroleum Company Limited (NNPC Ltd.) is considering offering between five and 10 per cent of its shares to investors through a proposed initial public offering (IPO) on the Nigerian Exchange (NGX).

The move is expected to open up the state-owned oil company to private investment, deepen Nigeria’s capital market and strengthen transparency and corporate governance in the petroleum industry.

NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed the plan in an interview with Reuters on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in the United Arab Emirates.

Ojulari said the company was considering an initial share offering of between five and 10 per cent, with the Nigerian stock market expected to be the primary destination.

He indicated that preparations for the proposed listing could take the whole of 2027, suggesting that the company is not expected to launch the IPO immediately.

According to the report, NNPC is also considering the possibility of a secondary listing in international markets, including London or New York, although no final decision has been announced.

Ojulari explained that improving transparency and corporate governance would be the main objectives of the proposed listing, while raising additional capital would be a secondary consideration.

A public listing would subject NNPC to greater scrutiny from shareholders, regulators and the investing public, with increased expectations around financial disclosures, accountability and corporate performance.

The proposed share sale does not necessarily mean the Federal Government will lose control of the company. If the plan proceeds as outlined, the government would retain the overwhelming majority of its shares, while private investors would acquire minority ownership interests.

For Nigerians, the proposed IPO could create an opportunity to become shareholders in the country’s national oil company. It could also attract local and foreign investors to the Nigerian capital market and increase trading activities on the Nigerian Exchange.

However, details concerning the proposed share price, minimum investment, subscription process, dividend policy and share allocation have not yet been announced.

The proposal comes as NNPC continues its transition into a commercially operated company following the enactment of the Petroleum Industry Act (PIA) 2021, which provided the legal framework for its incorporation as a limited liability company.

NNPC Limited officially commenced operations in July 2022, replacing the former Nigerian National Petroleum Corporation.

The proposed IPO would represent another major step in the company’s transformation, potentially placing it under greater public scrutiny and expanding private-sector participation in its ownership.

However, prospective investors are expected to await further details, particularly the company’s audited financial statements, valuation, liabilities and the conditions attached to the proposed share offering.

If successfully implemented, the listing could become one of Nigeria’s significant capital-market transactions, giving investors an opportunity to participate in the ownership of a company at the centre of the country’s oil and gas industry.

For now, the proposal remains under consideration, with preparations expected to continue before any formal public offer is announced.