NNPC Considers Selling 10% Stake Through Proposed Lagos IPO

The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed the proposal in an interview with Reuters on the sidelines of the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in the United Arab Emirates.

According to Ojulari, the company is considering floating between five and 10 per cent of its equity through an initial public offering (IPO), with the Nigerian capital market expected to serve as the primary platform.

A secondary listing in London or New York could also be considered after the domestic offering.

The proposed structure would allow Nigerians and other investors to acquire shares in the national oil company without necessarily transferring operational control away from the Federal Government.

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

The proposal, however, remains under consideration, and the company has not announced a final share-sale timetable, valuation or detailed ownership structure.

Transparency and Corporate Governance Are Main Priorities

Ojulari explained that improving transparency and corporate governance would be the primary objectives of the proposed IPO, while raising additional funds would be a secondary consideration.

Preparations for the offering are expected to take at least the whole of 2027, suggesting that investors should not expect an immediate listing.

The proposed share sale comes amid efforts to strengthen NNPC’s financial reporting, governance structures and commercial operations ahead of its eventual entry into the stock market.

The Petroleum Industry Act (PIA) 2021 established the legal framework for NNPC’s transition into a commercially operated company and provided for its eventual listing.

However, the process has taken longer than initially anticipated, with the company previously identifying financial reporting, governance and organisational reforms as important steps towards becoming IPO-ready.

Ojulari had earlier indicated that NNPC was working towards a possible stock market listing by 2028. The latest proposal provides more detail about the potential size and structure of the offering, although the final decision remains subject to approval by the company’s shareholders.

Dangote Refinery IPO Highlights Investor Appetite

The proposed NNPC share sale follows the successful conclusion of the Dangote Petroleum Refinery’s domestic IPO, which attracted substantial interest from retail and institutional investors.

According to Reuters, the Dangote refinery offering received orders worth approximately ₦6.4 trillion, equivalent to $4.78 billion, demonstrating significant investor interest in large Nigerian energy-sector investments.

The development could provide an encouraging indication of the appetite available in the domestic capital market for a potential NNPC offering.

However, the two companies have different ownership structures and business operations. NNPC is a state-owned integrated energy company with interests across the petroleum value chain, while Dangote Petroleum Refinery is a privately established refining business.

A public offering of NNPC shares would therefore represent a particularly significant development in Nigeria’s capital market, potentially giving investors an opportunity to participate in the performance of the country’s national oil company.

Chinese Investors Show Interest in NNPC-Owned Refineries

Beyond the proposed IPO, Ojulari disclosed that Chinese companies had expressed interest in acquiring equity stakes in some of Nigeria’s smaller refineries.

The facilities include the Port Harcourt and Warri refineries, which require substantial rehabilitation before they can operate sustainably.

The proposed arrangement would go beyond conventional engineering and construction contracts by allowing foreign investors to participate directly in refinery ownership.

Ojulari said NNPC would retain at least a 10 per cent ownership interest in any such arrangement.

The company has also held discussions with a Chinese engineering firm regarding the rehabilitation of at least one of the facilities.

The NNPC chief executive expressed the expectation that at least one of the smaller refineries could resume production within the next three years.

The potential involvement of foreign investors could provide access to technical expertise, financing and operational experience needed to restore the facilities.

However, the success of any partnership would depend on the final investment terms, the scale of rehabilitation required and the ability of the refineries to operate profitably after restarting.

What the Proposed IPO Means for Nigeria’s Oil Industry

A minority share sale could mark an important shift in the ownership and accountability structure of Nigeria’s petroleum industry.

For investors, it could create an opportunity to own part of a company with interests in oil and gas production, trading, refining and other energy-related activities.

For the capital market, the offering could increase market activity, attract institutional investment and provide a major new investment opportunity for domestic and potentially international investors.

The proposal could also encourage greater scrutiny of NNPC’s financial performance, management decisions and corporate governance.

However, the planned IPO is not without challenges. Investors are likely to examine the company’s financial records, liabilities, operational performance and the commercial viability of its different business units before committing funds.

There are also broader questions about how the Federal Government intends to balance public ownership with private investment while ensuring that the company operates transparently and efficiently.

NNPC has historically played a central role in Nigeria’s petroleum industry and government revenue generation. Its transition towards greater public ownership could therefore have implications for the management of the country’s oil and gas resources.

Outlook: NNPC’s IPO Could Reshape the Capital Market

The proposed sale of between five and 10 per cent of NNPC’s shares could become one of Nigeria’s most significant capital market transactions if the company completes its preparations and secures shareholder approval.

Although the offering is still under consideration, the proposed domestic listing, with a possible international secondary listing, signals the company’s intention to attract broader investor participation.

The coming year is expected to be important as NNPC works towards improving its governance, financial reporting and readiness for the proposed transaction.

For Nigeria, the central question will be whether opening the national oil company to public investors can translate into stronger accountability, improved operational efficiency and better value from the country’s petroleum resources.