NNPC Eyes 5%–10% Stake Sale in IPO – Ojulari

Nigeria’s state-owned oil giant, the Nigerian National Petroleum Company (NNPC) Limited, is considering offering between 5 per cent and 10 per cent of its shares to investors through an initial public offering (IPO), its Group Chief Executive Officer, Bashir Bayo Ojulari, has disclosed.

Ojulari told Reuters that the proposed share sale would initially target Nigeria’s domestic capital market, although the company could explore a secondary listing in London or New York at a later stage.

He also disclosed that NNPC was considering the possibility of listing some of its subsidiaries, following the model adopted by the United Arab Emirates’ state-owned oil company, Abu Dhabi National Oil Company (ADNOC).

According to him, preparations for the proposed IPO would likely take the whole of 2027, suggesting that the company is not yet ready for an immediate public offering.

Ojulari said the primary objective of the planned listing was to strengthen corporate transparency, accountability and governance in line with Nigerian laws, while raising additional capital would be a secondary consideration.

The proposed IPO represents a significant development for Nigeria’s oil and gas industry, as NNPC moves towards greater commercial transparency and private-sector participation.

A successful listing could also create opportunities for Nigerian investors to acquire stakes in the country’s national oil company and participate more directly in the energy sector.

Meanwhile, Ojulari disclosed that some Chinese companies had expressed interest in acquiring equity stakes in NNPC’s smaller refineries that require substantial rehabilitation, rather than simply undertaking repair contracts.

The facilities under consideration include the Port Harcourt and Warri refineries.

He said NNPC would retain at least a 10 per cent ownership stake in any equity arrangement involving the facilities.

Ojulari also expressed optimism that at least one of the smaller refineries could resume operations within the next three years.

The developments come amid growing investor interest in Nigeria’s energy industry, following the reported 6.4 trillion naira, equivalent to approximately $4.78 billion, in orders attracted by the Dangote Refinery during its domestic IPO.

The strong demand for the Dangote Refinery offering highlights the potential appetite among investors for opportunities in Nigeria’s oil and gas sector.

NNPC’s proposed share sale, if successfully implemented, could mark a new chapter in the company’s corporate structure, ownership and relationship with the Nigerian capital market.