NNPC Announces Plans To Sell Shares to Nigerians, Takes Another Action

• NNPC has retracted its announcement that it plans to sell shares to Nigerians after recording a profit
• Nigerians have been eagerly anticipating the initial public offering since the signing of the Petroleum Industry Act
• This is not the first time the state oil firm has announced plans to list its shares on the Nigerian stock market

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPC Ltd.) said on Thursday, March 27, 2025, that it is in the final stages of preparing for an initial public offering (IPO), reviving plans to sell shares to investors.

However, just hours after making the announcement, NNPC Ltd deleted its social media posts about the planned IPO, raising questions about the timing and certainty of the listing.

In the deleted statement signed by spokesman Olufemi Soneye, Olugbenga Oluwaniyi, NNPC’s chief finance and investor relations officer, was revealed to have made the plans known during a consultative meeting with partners at the NNPC Towers in Abuja.

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It was also revealed that as part of regulatory requirements, the company is conducting an “IPO Beauty Parade” to assess potential partners in three key areas: Investor Relations, IPO Readiness Advisory, and Investment Banking.

Oluwaniyi said:

“The company with the best offer in terms of project partnership would be selected for each of the three categories.”

The company has not provided a timeline for the offering.

NNPC plans to list shares

NNPC Ltd. has previously announced plans for an IPO, including in 2018 and 2023, but those efforts did not materialise due to market conditions and internal restructuring challenges.

The company, which became a commercial entity in 2022 under the Petroleum Industry Act (PIA), is required to list its shares in line with the Companies and Allied Matters Act (CAMA) 1990.

Vanguard reports that analysts say NNPC Ltd. must strengthen its financial position to attract investors by improving transparency, reducing debt, and maintaining positive cash flow.

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The company has yet to publish its audited accounts for 2024 and has a history of financial opacity after decades of fuel subsidies and state interventions.

Despite the move, NNPC Ltd.'s decision to delete tweets about the planned IPO from its official social media accounts raises questions about the timing and certainty of the listing.

How does IPO work?

According to BusinessDay, an initial public offering (IPO) is typically a lengthy and complex process for any company.

However, for NNPC Ltd, which published its first audited accounts in 2023 after over four decades of operation and has faced ongoing financial transparency issues, going public poses even greater challenges, sparking concerns about governance, investor confidence, and regulatory oversight.

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Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng