NNPC plans to sell up to 10% of equity in IPO, eyeing domestic and possible London or New York listings

The Nigerian National Petroleum Company Limited (NNPC) has announced that it is evaluating the sale of between five and ten per cent of its equity through an initial public offering. The plan, disclosed by Group Chief Executive Officer Bashir Bayo Ojulari in interviews with Reuters, would initially target Nigeria’s domestic capital market, with a possible secondary listing on either the London Stock Exchange or the New York Stock Exchange.

Ojulari said the offering is not slated for immediate execution; the company expects to spend the entirety of 2027 preparing for the transaction. While the primary objective is to enhance corporate transparency and governance, raising additional capital is described as a secondary benefit. The proposal follows a baseline assessment of IPO readiness completed last month, which identified gaps in financial reporting and corporate governance that the firm is now addressing.

Background

This action follows a sequence of measures implemented after the 2021 Petroleum Industry Act restructured the former Nigerian National Petroleum Corporation into a commercially focused limited-liability entity in July 2022. The PIA mandates that NNPC operate profitably without reliance on government funding, declare dividends, and retain a portion of profits for reinvestment. Plans to list the company on the Nigerian Exchange have been discussed for several years, with a roadmap outlined in July 2025 targeting a 2028 listing. However, as of September 2026, no definitive date had been set, and the final decision rests with the company’s shareholders.

The proposed IPO mirrors strategies employed by other state‑owned oil firms, notably the United Arab Emirates’ ADNOC, which has listed subsidiaries separately. NNPC is also considering similar listings for its own subsidiaries. The timing of the announcement coincides with the recent completion of the Dangote Petroleum Refinery IPO, which closed on 27 October after an extended subscription period.

Why it matters

If approved, the IPO would open NNPC to broader public scrutiny and private investment while the federal government retains operational control. The listing is expected to improve transparency and corporate governance, addressing gaps identified in the company’s recent readiness assessment. Finance Minister Taiwo Oyedele has reiterated government support for listing strategic assets such as NNPC and Nigeria LNG to foster wealth generation and transparency.

The sale could also attract foreign interest; Chinese firms have reportedly shown interest in acquiring stakes in NNPC’s smaller refineries at Port Harcourt and Warri, with the company planning to retain at least a 10% interest in those assets. Successful revitalisation of these refineries could see at least one resume production within three years, potentially expanding Nigeria’s refining capacity.

What happens next

NNPC expects to spend the whole of 2027 finalising preparations for the IPO, including addressing financial reporting and governance gaps identified by advisers. No formal timetable or valuation for the share sale has been announced, and the ultimate decision will be made by shareholders. Should the primary offering proceed, a secondary listing in London or New York could follow, contingent on market conditions and regulatory approvals. The company’s progress will be closely watched by investors, policymakers, and industry observers as it seeks to balance public ownership with commercial objectives.