NNPC Moves to Sell 10% Stake, Targets London, New York Stock Markets

Group CEO Bayo Ojulari says the proposed share offer will target Nigeria’s domestic market, with a possible secondary listing in London or New York

The Nigerian National Petroleum Company Limited (NNPC) is considering selling between five and 10 per cent of its equity to investors through an initial public offering (IPO), in a move that could introduce private shareholders into the state-owned energy company while retaining government control.

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The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed the proposal in an interview with Reuters on Tuesday, November 3, 2026, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference in the United Arab Emirates.

Ojulari said the proposed offering would focus primarily on Nigeria’s domestic capital market, with a possible secondary listing on the London or New York stock exchanges.

The plan could also pave the way for separate listings of some NNPC subsidiaries, following a model adopted by Abu Dhabi National Oil Company (ADNOC), the state-owned energy company in the United Arab Emirates.

According to Reuters, preparations for the proposed share sale could take at least the whole of 2027, suggesting that the company is unlikely to proceed with an immediate public offering.

Ojulari said the primary objective was to strengthen transparency and corporate governance rather than raise additional funds, indicating that the proposed transaction would be part of a broader effort to align NNPC with the standards expected of publicly listed companies.

The proposed IPO represents a significant development in the company’s long-running plan to open its ownership structure to private investors.

In July 2025, Ojulari said NNPC had a roadmap to achieve a stock market listing by 2028.

However, in September 2026, he clarified that no firm date had been established, stressing that the final decision rested with the company’s shareholders rather than management alone.

“We don’t have a date, but we are working hard to make sure we are ready as soon as we can.

The decision to take an IPO is not ours. It’s the shareholders that will take that decision ultimately on behalf of the country,” he said at the time.

The company has since made progress towards meeting the requirements for a public listing. In October, Ojulari disclosed that NNPC had completed a baseline assessment of its IPO readiness and was addressing gaps identified by its advisers, particularly in financial reporting and corporate governance.

The assessment is expected to help the company strengthen its reporting structures, improve accountability and determine which parts of its extensive business portfolio are suitable for public investment.

Although the proposed five to 10 per cent stake provides a clearer indication of the ownership structure under consideration, NNPC has not announced a formal offer timetable, valuation, share price or final listing venue.

The legal framework for the proposed transaction is contained in the Petroleum Industry Act (PIA) 2021, which transformed the former Nigerian National Petroleum Corporation into a commercially driven limited liability company in July 2022.

Under Section 53 of the Act, the Federal Government initially holds all shares in NNPC Limited through the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated, which own equal portions on behalf of the Federation.

The legislation also stipulates that government-held shares cannot be transferred without government approval and endorsement by the National Economic Council.

Any sale must be conducted at fair market value through an open, transparent and competitive bidding process, with the two government shareholdings transferred in equal proportions.

The Act further requires NNPC to operate profitably without recourse to government funding, declare dividends to shareholders and retain 20 per cent of its profits as retained earnings to support business growth.

The proposed IPO has also attracted attention following the strong demand recorded during the recent public offer by Dangote Petroleum Refinery and Petrochemicals.

The refinery’s offer, which closed on October 27, 2026, attracted orders worth approximately N6.4tn, equivalent to $4.78bn, from retail and institutional investors, according to Reuters sources familiar with the transaction.

The amount was almost three times the targeted offer value of about $1.6bn, providing a fresh indication of investor appetite for major Nigerian energy businesses.

The strong response has strengthened the case for broader participation by domestic investors in the country’s energy sector, although NNPC’s proposed offering would involve a different ownership structure and a much wider range of petroleum operations.

NNPC is also approaching the proposed listing with improved financial results. Its audited 2025 financial statements showed profit after tax rising by 33 per cent to N7.2tn, compared with N5.4tn in 2024.

However, revenue declined by 24 per cent to N34.5tn, largely reflecting lower crude oil prices and reduced volumes of refined petroleum products following market deregulation in 2024.

The company also reported earnings before interest, taxes, depreciation and amortisation of N18tn, operating cash flow of N12.8tn and declared a dividend of N5.8tn, representing a 35 per cent increase from the previous year.

Beyond the proposed share sale, Ojulari disclosed that Chinese companies had expressed interest in acquiring equity stakes in some of NNPC’s smaller refineries, particularly the Port Harcourt and Warri facilities, which require substantial rehabilitation.

He said NNPC would retain at least a 10 per cent equity interest under any such arrangement, while expressing the expectation that at least one of the facilities could resume production within three years.

If approved and successfully implemented, the NNPC IPO could mark a major shift in the ownership and accountability structure of Nigeria’s national oil company, giving private investors an opportunity to participate in its operations while exposing the business to greater public-market scrutiny.

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However, the proposal remains at the preparatory stage, with regulatory requirements, shareholder approval, valuation and market conditions still to be addressed before investors can subscribe to any shares.