The Federal Government has renewed plans to list the Nigerian National Petroleum Company Limited (NNPCL) on the Nigerian Exchange (NGX), reviving a proposal that has been in the works for about a decade.
President Bola Tinubu restated the plan on August 6 during a meeting with the leadership of NGX Group, saying the government intends to eventually list the entire state-owned oil company on the stock exchange.
The proposal was first outlined in 2016 as part of efforts to reform Nigeria’s petroleum sector. The 2021 Petroleum Industry Act also provided for the transformation of NNPCL into a commercial entity.
The renewed listing plan comes as the Nigerian stock market continues to record strong growth. The NGX has returned 57.8 per cent this year, while its total market capitalisation stood at N158.51 trillion at the end of trading on August 7.
A public offering of even a small portion of NNPCL could significantly increase the size of the Nigerian capital market. BusinessDay estimates that a 10 per cent stake, based on a $40 billion valuation, could be worth about N60 trillion.
That would make NNPCL significantly larger than some of the biggest companies currently listed on the exchange and could substantially increase the energy sector’s share of the market.
NGX Group CEO, Temi Popoola, welcomed the government’s commitment, saying the listing would allow Nigerians to own shares in one of the country’s most important commercial assets.
He also said bringing major state-owned companies to the stock market could improve transparency, corporate governance and accountability while helping to mobilise more capital for the economy.
NNPCL currently controls assets estimated at between $150 billion and $153 billion, making it potentially one of the largest companies on the African continent if fully prepared for a public listing.
However, the company still faces several challenges before such a transaction can take place.
Tinubu has pointed to Saudi Aramco as a model for NNPCL. Aramco was listed in 2019 after years of preparation, including financial restructuring, external audits and extensive disclosure to investors.
NNPCL, on the other hand, continues to face questions over its finances, revenue remittances and governance. Its financial relationship with the Federal Government has attracted scrutiny over the years.
The World Bank reported in 2025 that NNPCL was transferring only about half of the savings generated from the removal of petrol subsidies to the government, raising further questions about the company’s financial management.
Another challenge is the structure of NNPCL’s oil production. Wood Mackenzie analysts said much of the company’s output comes from assets operated by international oil companies and indigenous producers, making future investment by these partners important to its growth.
The proposed NNPCL listing is also coming at a time when Dangote Petroleum Refinery is preparing for a potential $5 billion initial public offering on the NGX.
Analysts at CardinalStone said the expected Dangote Refinery listing could attract significant institutional investment and boost trading activity on the Nigerian market.
If both companies eventually become publicly traded, their listings could dramatically increase the size of the NGX and strengthen the position of Nigeria’s energy sector in the capital market.
