NNPC eyes 10% equity sale, London, New York listings

The Nigerian National Petroleum Company Limited (NNPC Limited) is considering selling between five and 10 per cent of its stake in an initial public offering (IPO), with a potential secondary listing on the London or New York stock exchanges. This move aims to enhance transparency, corporate governance, and raise capital, though it is not expected to happen immediately, as preparations may take until the end of next year.

The Group Chief Executive Officer, Bashir Bayo Ojulari, made the announcement in an interview with Reuters, stating that the primary focus would be on Nigeria's domestic capital market, with international listings following. The proposed IPO aligns with the Petroleum Industry Act 2021, which transformed NNPC Limited into a commercially driven limited liability company, requiring it to operate profitably and declare dividends to shareholders.

The IPO discussion has gained momentum since a similar public offer by Dangote Petroleum Refinery, which attracted significant domestic investor interest.