The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced plans to sell shares to the public as part of its transition into a fully commercial entity. This move is expected to increase transparency, attract investment, and boost Nigeria’s oil and gas sector.
The Group Chief Executive Officer of NNPC Ltd, Mele Kyari, revealed that the company is preparing for an Initial Public Offering (IPO), which will allow Nigerians and institutional investors to buy shares in the state-owned oil firm. According to Kyari, the listing process will follow due regulatory procedures to ensure fairness and market stability.
The sale of shares comes after the Petroleum Industry Act (PIA) of 2021 restructured NNPC into a profit-driven limited liability company, making it operate like a private business rather than a government agency. The transition aims to improve efficiency, reduce political interference, and position NNPC Ltd as a global energy company.
Experts believe the IPO will provide an opportunity for local and foreign investors to participate in Nigeria’s oil and gas sector. Some analysts also predict that the move will enhance corporate governance within NNPC, ensuring better accountability in its operations.
However, some industry stakeholders have raised concerns about the valuation of NNPC’s assets, transparency in the share allocation process, and how the government will manage its stake in the company after the public listing. There are also questions about how the move will affect fuel subsidies, crude oil production, and revenue generation.
Despite these concerns, NNPC Ltd assures the public that it will follow international best practices in its share sale process. The company is currently undergoing financial audits and structural adjustments to prepare for the listing.
As Nigeria’s leading oil company, NNPC Ltd controls a significant portion of the country’s petroleum resources. The upcoming share sale marks a historic shift in how the company operates and could set a precedent for other state-owned enterprises in Nigeria.
The timeline for the IPO has not been officially disclosed, but reports indicate that NNPC Ltd is working closely with regulatory bodies and financial experts to finalize the necessary steps before going public.
Many Nigerians and investors will be watching closely to see how this transition unfolds and what it means for the country’s energy sector and economy.
