Nigeria’s state-owned oil company, Nigerian National Petroleum Company (NNPC), is likely to offer between 5% and 10% of its shares in an initial public offering, with the domestic market expected to be the primary destination. CEO Bashir Bayo Ojulari told Reuters on Tuesday that a secondary listing in London or New York could also be considered. Preparations are expected to take at least through 2027, with improving transparency and corporate governance identified as the main objectives rather than raising capital.
IPO Structure and Listing Plans
NNPC is considering an initial public offering that would open a minority stake in the company to investors while allowing the Nigerian state to retain control. The proposed 5% to 10% offering would focus primarily on domestic investors, although the company may explore an additional listing in an international financial center such as London or New York.
Ojulari also indicated that subsidiaries could pursue separate listings. The approach would resemble strategies adopted by Gulf state energy companies, including ADNOC, which have offered investors stakes in selected business operations while maintaining operational control and retaining ownership of their core oil-producing assets.
The preparations for an NNPC listing are expected to require at least all of 2027. According to Ojulari, the primary objective is to strengthen transparency and governance in line with Nigerian law, while capital raising would be a secondary consideration.
Nigeria’s IPO Market Context
The proposed NNPC listing follows renewed activity in Nigeria’s domestic capital markets. The Dangote oil refinery recently completed a domestic IPO that attracted 6.4 trillion naira, equivalent to approximately $4.78 billion, in orders from retail and institutional investors, according to a person involved in the offering cited by Reuters.
That level of investor demand provides a recent example of the potential depth of domestic appetite for large energy-sector offerings. However, NNPC’s proposed transaction remains at the preparation stage, and its eventual structure, valuation, and timing have not been disclosed.
Chinese Interest in Refinery Investments
Alongside the IPO plans, NNPC is exploring potential equity partnerships with Chinese companies interested in investing in some of Nigeria’s smaller refineries. Ojulari said Chinese investors had expressed interest in acquiring stakes in facilities such as the Port Harcourt and Warri refineries, which require substantial repairs.
The discussions would go beyond conventional engineering and construction contracts by allowing outside companies to participate as equity investors. NNPC would retain at least a 10% ownership stake under any such arrangement.
The company has previously discussed working with a Chinese engineering firm to refurbish at least one of its refineries. The facilities have not operated at full capacity for more than a decade. Ojulari expects at least one of the smaller refineries to resume production within a maximum of three years.
Risks and Challenges
The proposed IPO faces a lengthy preparation process, with the company indicating that work will likely continue throughout 2027. Governance improvements, transparency requirements, transaction structure, and investor participation will be important considerations before a listing can proceed.
The refinery investment plans also depend on substantial repair work and the successful completion of potential partnerships. Although Chinese companies have expressed interest, no finalized investment agreement or confirmed reopening schedule was disclosed.
Closing Insights
NNPC’s proposed 5% to 10% IPO could represent a significant development for Nigeria’s capital markets and the country’s state-owned energy sector. The emphasis on governance and transparency suggests that the listing is intended to serve as a broader institutional reform initiative, rather than simply a fundraising exercise. Potential subsidiary listings and minority equity partnerships in smaller refineries could further expand private-sector participation in Nigeria’s energy industry. The key developments to monitor will be the progress of IPO preparations through 2027, the eventual listing structure, and whether refinery investment discussions translate into completed agreements.
