On Tuesday, November 3, 2026, the Nigerian National Petroleum Company Limited (NNPCL) announced that it is planning to sell between five and 10 per cent of its equity to investors through an initial public offering (IPO).
The company also stated that it is considering a possible secondary listing on the London or New York stock exchanges.
It is believed that this would open the oil giant to greater public scrutiny. It is an open secret that Nigerians widely distrust NNPCL because of its long-standing history of opaque finances, recurring controversies and the failure of public refineries to deliver on their mandate.
For a company that has controlled Nigeria’s oil and gas resources for decades, the question of accountability has remained a recurring concern. Successive administrations have faced pressure to explain the management of oil revenues, crude oil sales, petroleum subsidy payments and other financial transactions involving the national oil company.
NNPCL has repeatedly faced legislative scrutiny over multi-billion and multi-trillion-naira financial discrepancies. High-profile parliamentary investigations and Senate committees have questioned the company over financial records, outstanding remittances, crude oil accounting and other transactions involving public resources.
These controversies have contributed to public scepticism about the company’s financial management, particularly because oil revenue remains a major source of government income.
Likewise, successive presidents have historically retained direct oversight of the petroleum sector, often serving as Minister of Petroleum Resources. This concentration of political and administrative authority has raised questions about the extent of independent supervision over the national oil company and whether its management can operate without undue political influence.
Although the Petroleum Industry Act (PIA) 2021 introduced significant changes to the governance structure of the petroleum sector, the question of how much operational independence NNPCL enjoys in practice remains important.
Despite sinking billions of dollars into public refineries in Warri, Kaduna and Port Harcourt over several decades, these facilities have largely failed to provide Nigerians with a dependable supply of locally refined petroleum products. Also, billions have repeatedly been spent on turnaround maintenance and rehabilitation programmes, with several promises missing their deadlines.
The consequences have been enormous. Nigeria, despite being one of Africa’s largest crude oil producers, has had to depend heavily on imported petroleum products for domestic consumption for years. This has exposed the country to foreign exchange pressures, international oil price fluctuations and supply disruptions, while ordinary Nigerians bear the burden through high pump prices and periodic fuel scarcity.
The challenge before the intending NNPCL IPO is: would it gain public trust and acceptance like the Dangote Refinery IPO, and will Nigerians invest in a company that has historically operated under considerable presidential influence?
Despite the obvious distrust, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, believes Nigerians would be excited about the public listing of the company.
Ojulari said the proposed share sale would focus primarily on Nigeria’s domestic capital market, while international listings could follow. He said the company was considering a model that would allow Nigerians to own shares in the national oil company without the Federal Government relinquishing operational control.
However, the proposed offering is not expected to happen immediately, as preparations could take at least the whole of next year. According to Ojulari, the primary objective of the proposed listing is to improve transparency and corporate governance, while raising capital would be a secondary consideration.
According to a Reuters report, Nigeria’s state oil company is likely to float between five and 10 per cent of its shares through an initial public offering, primarily targeting the domestic market, with a potential secondary listing in London or New York. Further listings of NNPCL subsidiaries might also take place, following a model adopted by the United Arab Emirates’ state-owned oil company, ADNOC.
The proposed sale comes as NNPCL intensifies efforts to address governance and financial reporting gaps identified during its preparations for a public listing.
The company had earlier indicated that it was working towards listing on the Nigerian Exchange, with Ojulari saying in July 2025 that it had a roadmap to achieve the objective by 2028.
However, in September 2026, he said no date had been fixed, adding that the final decision rested with the company’s shareholders.
At the time, he said, “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.”
Last month, Ojulari disclosed that the company had completed a baseline assessment of its readiness for the IPO and was addressing gaps identified by its advisers, particularly in financial reporting and corporate governance.
The latest proposal for a five to 10 per cent offer, with a possible London or New York listing, provides a clearer indication of the ownership structure being considered, although the company has yet to announce a formal offer timetable or valuation.
The proposed listing is rooted in the Petroleum Industry Act 2021, which transformed the former Nigerian National Petroleum Corporation into a commercially driven limited liability company in July 2022. The legislation requires NNPC Limited to operate profitably without recourse to government funds, declare dividends to shareholders and retain 20 per cent of its profits as retained earnings to support business growth.
The intention was to move the national oil company away from the traditional model of government-controlled operations towards a commercially oriented business capable of competing with other international energy companies.
However, the transformation of NNPC from a government corporation into a limited liability company has not, by itself, eliminated public concerns about transparency and accountability. Its proposed entry into the capital market could therefore represent a more significant test of the reforms introduced under the PIA.
Under a public listing, shareholders would expect regular financial disclosures, credible audited accounts, clear dividend policies and explanations for major business decisions. Investors would also want assurances that the company would be managed in their interests and that political considerations would not override commercial decisions.
The question is whether a minority shareholding of five to 10 per cent would be sufficient to guarantee these expectations, particularly when the Federal Government is expected to retain operational control.
The IPO discussion has gained momentum following the recent public offer by Dangote Petroleum Refinery, which attracted significant interest from domestic investors.
The refinery’s share offer, which closed on October 27, attracted orders worth about N6.4tn, equivalent to $4.78bn, from Nigerian retail and institutional investors, according to sources familiar with the transaction cited by Reuters.
The amount was almost three times the refinery’s targeted offer of about $1.6bn. Reuters also reported that more than two million investors had subscribed through digital channels, although the final allotment and proceeds remained subject to the post-offer process.
The strong demand has provided a fresh indication of investor appetite for large Nigerian energy businesses. It has also demonstrated that Nigerians are willing to commit substantial funds to the petroleum sector when they see a potentially attractive investment opportunity.
However, the Dangote Refinery experience may not automatically translate into similar enthusiasm for NNPCL.
Unlike a privately promoted refinery whose investment proposition is largely tied to its production capacity, profitability, expansion plans and management structure, NNPCL carries the weight of decades of public expectations and controversies surrounding the management of Nigeria’s oil resources.
For many Nigerians, the issue is not simply whether the company can make profits but whether its financial dealings can be independently examined and its management held accountable.
NNPCL is also entering the proposed listing process with improved financial performance. Its 2025 audited results showed a profit after tax of N7.2tn, representing a 33 per cent increase from N5.4tn in 2024. However, revenue fell by 24 per cent to N34.5tn from N45.1tn in the previous year. The company also declared a dividend of N5.8tn.
The figures present an interesting picture of a company recording higher profits despite declining revenue. NNPCL attributed the revenue decline principally to lower crude oil prices and reduced petroleum product volumes following market deregulation in 2024. Its earnings before interest, taxes, depreciation and amortisation also increased by 22 per cent to N18tn, while operating cash flow rose by 16 per cent to N12.8tn.
These figures could strengthen the company’s investment case, but prospective shareholders would need more than impressive profit declarations to make a commitment. They would want to understand the quality of the company’s earnings, its outstanding liabilities, cash flow position, investment obligations and exposure to government policies.
There is also the question of what an international listing would mean for NNPCL. Listing on the London or New York stock exchanges could expose the company to a wider pool of institutional investors and potentially subject it to additional disclosure and corporate governance requirements. It could also improve its visibility among international energy investors.
But an international listing is not necessarily a guarantee of accountability. The quality of corporate governance depends largely on the effectiveness of the board, the independence of auditors, the protection of minority shareholders and the willingness of management to disclose uncomfortable information.
For NNPCL, the most important consideration should therefore be to demonstrate that the proposed IPO will produce lasting changes in how the company is managed.
The Federal Government must also be prepared to establish clear boundaries between its role as the owner of the company, its responsibility for petroleum policy and the commercial decisions of NNPCL’s management. Without such safeguards, minority investors could find themselves holding shares in a company whose most important decisions remain subject to political considerations.
Ultimately, Nigerians will judge the proposed listing not by the prestige of having NNPCL’s name on the London or New York stock exchanges but by whether the company becomes more transparent, accountable and efficient.
The national oil company has an opportunity to use the IPO to rebuild confidence in an institution that has struggled with public credibility for decades. But that confidence cannot be purchased through international exposure or generated by impressive financial figures alone.
If Nigerians are to invest in NNPCL with the same enthusiasm demonstrated during the Dangote Refinery offer, the company must first convince them that the old culture of opacity and weak accountability is giving way to a genuinely new corporate order.
Otherwise, listing on some of the world’s most prestigious stock exchanges may improve NNPCL’s international profile without necessarily remedying its battered image at home.
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