NNPC Revives IPO Push as Dangote Refinery Offer Runs

The Nigerian National Petroleum Company (NNPC) Limited’s renewed push for a stock market listing is putting its governance and transparency reforms under fresh scrutiny as the ongoing Dangote Refinery initial public offering (IPO) offers a new reference point for bringing major Nigerian businesses to the capital market.

Bayo Ojulari, NNPC’s group chief executive officer, said the state-owned oil company was making progress toward listing on the Nigerian Exchange (NGX) but still needed to address gaps its advisers identified before moving forward.

In a Tuesday interview with Bloomberg, Ojulari said the company had completed its baseline assessment and was working on changes to some reporting structures and governance frameworks.

“We’ve done the baseline assessment,” Ojulari said.

The latest update comes as investors consider the Dangote Petroleum Refinery’s ongoing share offer, which seeks to raise funds from the public and broaden participation in one of Nigeria’s largest industrial projects.

Pinnacle Daily reports that the Dangote Refinery offer involves 4.1 billion shares at ₦525 each, with the potential to raise about ₦2.15 trillion. The subscription deadline was extended from October 13 to October 27 to widen participation.

Ojulari said the refinery’s share offering had provided a successful precedent for the NNPC’s planned listing.

However, the NNPC’s progress towards an IPO raises a key question, which has centred on whether the company can demonstrate the transparency, governance standards and financial performance required to attract public investors.

In an earlier analysis published by Pinnacle Daily, concerns about transparency and corporate governance were identified as potential obstacles to bringing state-linked businesses to the capital market.

The analysis highlighted arguments that listing could improve access to long-term funding, strengthen corporate governance and expand public participation in the ownership of major businesses. However, companies must meet the NGX’s listing and post-listing requirements to protect investors and sustain market confidence.

David Adonri, executive vice-chairman of Highcap Securities Limited, said listing could improve access to public ownership and make the company’s shares available to a wider pool of investors.

“I don’t think that NNPC has more than two shareholders, so the benefit of liquidity does not arise. If they do an IPO [initial public offering] and get more shareholders, they will have enough reason to list,” Adonri said.

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He also stressed the importance of meeting the exchange’s requirements to protect investors.

“It may be difficult to waive the listing and post-listing requirements if investors’ confidence is to be sustained,” he said.

Listing could improve accountability

The NNPC’s latest update suggests that its advisers are working on some of the institutional issues that could affect its readiness for a public offer. However, the company has not announced a listing date.

Ojulari had said in July 2025 that the NNPC planned to list on the stock exchange by 2028. On September 29, he said the company had not fixed a date for the IPO and that the decision ultimately rested with its shareholders.

The latest comments indicate progress on the preparatory work, but the remaining governance and reporting changes will be important to the company’s readiness for the market.

A public listing could give investors greater access to information about the company’s performance while creating an opportunity for Nigerians to own shares in the national oil company.

Matthew Ogagavworia, a financial analyst cited in the earlier Pinnacle Daily analysis, said listing could improve efficiency and reduce waste in state-owned businesses.

“As a corporation, we expect more efficiency. We expect waste to be reduced. And for the capital market, it will mean that investors will have more stocks to trade daily on the stock market, with market capitalisation swelling by the value of the listed stock of the NNPC when it gets listed,” he said.

Ogagavworia also raised the question of profitability, noting that a company’s ability to meet the exchange’s financial requirements would be central to its eligibility.

The NNPC’s listing plans have received support from the government. On October 6, Vice-President Kashim Shettima urged the company to surpass expectations when it lists on the NGX, citing the Dangote Refinery’s performance.

The Petroleum Industry Act 2021 provides for the NNPC to list its shares in the capital market.

Dangote offer renews focus on public ownership

The ongoing Dangote Refinery IPO has brought renewed attention to the potential role of the capital market in financing large Nigerian businesses and widening public ownership.

For the NNPC, the opportunity goes beyond adding another stock to the NGX. A successful listing could create a route to broader share ownership, provide investors with another investment option and subject the company to the disclosure requirements that come with being publicly listed.

Ogagavworia said the capital market was better suited to providing long-term funds for businesses than relying solely on commercial banks.

“As of today, if you need money for the long term, the capital market is the way to go,” he said. “The commercial banks don’t have long-term funds which they can give to any business. So, the capital market offers that veritable avenue where people can come and buy shares and wait for those businesses to turn around and begin to pay dividends.”

For the NNPC, however, the immediate task is to complete the groundwork required for a listing and demonstrate that it can meet market standards.