The Nigerian National Petroleum Company Limited (NNPC) is weighing plans to sell between five and 10 per cent of its shares to private investors through an initial public offering (IPO), as it considers a possible secondary listing on the London or New York stock exchanges.
The proposed divestment is expected to open the national oil company to broader private investment and increased public scrutiny while allowing the Federal Government to maintain operational control.
NNPC's Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed the development in an interview with Reuters on Tuesday, indicating that the company was considering a domestic share offer as the first phase of its proposed capital market entry.
He explained that the arrangement would give Nigerians an opportunity to own shares in the national oil company, with an international listing potentially coming afterwards.
The proposed exercise, however, is not expected to take place in the immediate future, as the company could spend the entirety of next year preparing for the offering.
Ojulari said the IPO was primarily intended to strengthen corporate governance, transparency and accountability, rather than serve as a major fundraising exercise.
The proposal also includes the possibility of listing some of NNPC's subsidiaries separately, following a model similar to that adopted by the United Arab Emirates' state-owned oil giant, ADNOC.
The development signals a fresh push by the company to reposition itself as a commercially competitive entity following its transition from the Nigerian National Petroleum Corporation to a limited liability company.
NNPC had previously announced its intention to list on the Nigerian Exchange, with Ojulari stating in July 2025 that a roadmap had been developed to achieve the target by 2028.
However, speaking in September 2026, the NNPC chief executive said the company had not settled on a listing date, noting that the decision would ultimately be taken by its shareholders.
"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.
Last month, Ojulari announced that NNPC had concluded a baseline assessment of its readiness for the proposed public offer and was working towards resolving deficiencies identified by its advisers.
The areas requiring attention include financial reporting and corporate governance, which are considered critical requirements for a company seeking to attract public investors and operate under the scrutiny of the capital market.
Although the proposed sale of five to 10 per cent of its equity provides a clearer indication of the scale of the government's planned divestment, NNPC has not announced an official offer date or disclosed the company's expected market valuation.
The planned IPO derives its legal foundation from the Petroleum Industry Act (PIA) 2021, which facilitated the conversion of the former national oil corporation into a commercially driven company in July 2022.
The legislation requires NNPC Limited to operate as a profit-making entity without depending on government funding. It also provides for dividend payments to shareholders and allows the company to retain 20 per cent of its profits for business development and expansion.
Meanwhile, the strong investor response to the recent share offer by Dangote Petroleum Refinery appears to have provided further encouragement for major energy companies considering public listings in Nigeria.
The refinery's public offer, which closed on October 27, attracted orders worth approximately N6.4tn, equivalent to $4.78bn, from retail and institutional investors, according to sources familiar with the transaction cited by Reuters.
The subscriptions were almost three times the refinery's targeted offer of about $1.6bn, although the final allotment and proceeds are subject to the post-offer process.
The level of demand has highlighted the capacity of Nigeria's domestic capital market to mobilise substantial funds for large-scale businesses, particularly in the energy sector.
NNPC is also seeking to leverage its recent financial performance as it works towards meeting the requirements for a public listing.
Its audited 2025 financial statements showed that profit after tax rose by 33 per cent to N7.2tn, up from N5.4tn in the preceding year.
Despite the increase in profitability, the company recorded a 24 per cent decline in revenue, which dropped from N45.1tn in 2024 to N34.5tn in 2025.
NNPC also declared a dividend of N5.8tn.
The proposed share sale, if approved and successfully executed, would mark a major milestone in the commercialisation of Nigeria's national oil company, potentially creating a new investment opportunity for Nigerians and international investors while subjecting its financial operations and management decisions to greater market scrutiny.
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