By Seun Ibiyemi
The Nigerian National Petroleum Company (NNPC) Limited is considering offering between five and 10 per cent of its shares to investors through a proposed initial public offering (IPO), with plans to list primarily on the Nigerian Exchange (NGX) and potentially pursue a secondary listing in London or New York.
The company also expects preparations for the public offering to continue throughout 2027 as it works to strengthen corporate governance, financial transparency and reporting standards ahead of the proposed listing.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed the plans in an interview with Reuters on Tuesday, November 3, 2026, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in the United Arab Emirates.
According to Ojulari, the company is considering an initial listing of a minority stake, with the possibility of a subsequent listing on either the London or New York stock exchanges.
The proposed arrangement would enable private investors to acquire shares in the national oil company while the Federal Government retains majority ownership.
An initial public offering is the process through which a company makes its shares available to the public for the first time, allowing individuals and institutional investors to acquire ownership stakes.
For NNPC, the proposed exercise would mark a significant milestone in its transition from a government-owned petroleum corporation to a commercially operated energy company.
Ojulari explained that the primary objective of the planned listing was to improve transparency and corporate governance rather than simply raise additional capital.
He said opening the company to public investors would require it to comply with stricter financial reporting, disclosure and accountability standards.
The proposed IPO follows the restructuring of the former Nigerian National Petroleum Corporation under the Petroleum Industry Act (PIA) 2021, which established NNPC Limited as a commercially oriented company operating under the Companies and Allied Matters Act.
The legislation was designed to improve efficiency, strengthen corporate accountability and enable the national oil company to operate on a more competitive commercial basis.
Although NNPC Limited remains wholly government-owned, its restructuring created a framework for future private investment and participation in its operations.
The proposed public offering would therefore represent another phase in the implementation of reforms introduced under the PIA.
Ojulari also disclosed that the company could consider separate public listings for some of its subsidiaries in the future.
The approach would be similar to that adopted by some national oil companies in the Middle East, where minority interests in selected businesses have been offered to investors while governments retain controlling stakes.
He cited the Abu Dhabi National Oil Company (ADNOC) as an example of a state-owned energy company that has opened parts of its operations to private investment through stock market listings.
Such arrangements provide opportunities for investors to participate in petroleum businesses without transferring overall control of strategic energy assets.
However, NNPC has not disclosed which subsidiaries could be considered for separate listings or the proportion of shares that might eventually be offered.
The latest disclosure comes weeks after Ojulari confirmed that NNPC had commenced preparations for its proposed IPO.
Speaking in September during the presentation of the company’s 2025 audited financial statements, the NNPC chief said management was working with advisers to assess its readiness for the stock market.
He said the company had not fixed a listing date, stressing that the final decision would rest with its shareholders.
In October, Ojulari further disclosed that NNPC had completed an initial assessment of its readiness and was addressing gaps identified by its advisers, including adjustments to financial reporting structures and governance arrangements.
The company is expected to continue the preparations in 2027, although the timing of the eventual listing will depend on regulatory requirements, market conditions and shareholder approval.
The proposed offering would also require NNPC to satisfy the listing and disclosure requirements of relevant securities regulators and stock exchanges.
These include financial reporting obligations, governance standards and other conditions designed to protect investors and support transparent trading.
For Nigeria’s capital market, the listing of a major national energy company could expand investment opportunities available to institutional and retail investors.
However, the eventual size and financial impact of the offering will depend on NNPC’s valuation, the final percentage of shares approved for sale and the structure of the transaction.
The company has not announced an offer price, valuation or timetable for inviting investors to subscribe.
Chinese Firms Eye Stakes in State-Owned Refineries
Beyond its stock market plans, Ojulari also revealed that Chinese companies had expressed interest in acquiring equity stakes in some of Nigeria’s state-owned refineries, including the Port Harcourt and Warri facilities.
According to Reuters, the discussions involve potential ownership participation rather than conventional engineering contracts alone, as NNPC explores options for restoring operations at the facilities.
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Ojulari indicated that NNPC would retain at least a 10 per cent equity interest under any such arrangement.
He also expressed the expectation that at least one of the smaller refineries could resume production within three years.
However, the discussions have not resulted in completed transactions, and no final investment agreements have been announced.
The proposed refinery partnerships form part of wider efforts to restructure NNPC’s operations, improve asset performance and attract private investment into Nigeria’s petroleum industry.
For the planned IPO, the immediate priority remains completing the necessary financial and governance preparations before seeking formal approval to offer shares to the public.
While Ojulari’s latest comments provide further details about the possible size and location of NNPC’s initial listing, the transaction remains under consideration, with no confirmed date for the public offering.
