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NNPC Is Now Nigeria’s Biggest Company by Shares Capital As It Enters a New Era After 44 Years
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NNPC Is Now Nigeria’s Biggest Company by Shares Capital As It Enters a New Era After 44 Years

by  Dave Ibemere 2 min read
  • The Nigerian National Petroleum Corporation (NNPC) is now the leading company in Nigeria
  • President Buhari on Tuesday will officially unveil NNPC as a public limited company for the first time in 44 years
  • The new status of NNPC will give the general public, especially Nigerians, to become part of the oil company with investments

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President Muhammdu Buhari will Tuesday, 19 July 2022, officially change the status of the Nigerian National Petroleum Company Limited (NNPC) to become a fully Limited Liability Company.

NNPC's operations will now be fully compliant with the terms of the Companies and Allied Matters Act (CAMA) of 20. This means that the general public can now buy and sell NNPC shares, but not yet.

NNPC, on the other hand, established an initial share capital of N200 billion when it was incorporated with the Corporate Affairs Commission.

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NNPC set to become Nigeria's biggest company
The head offices of the Nigerian National Petroleum Corp. stand in Abuja Photographer: George Osodi/Bloomberg via Getty Images
Source: Getty Images

The N200 billion is the amount of money the Federal government have invested, CAC said is the biggest in Nigeria.

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Biggest companies in Nigeria

As of the end of 30th June 2022, data from the Nigerian Exchange, where shares of companies are publicly traded, shows Airtel Africa is the biggest company in Nigeria by market capitalisation.

The top companies are presented below and the value of their shares

  1. Airtel Africa – N6.51 trillion
  2. Dangote Cement – N4.69 trillion
  3. MTN Nigeria – N4.68 trillion
  4. BUA Cement – N2.43 trillion
  5. Nestle Nigeria – N1.11 trillion
  6. 6: BUA Foods – N990 billion
  7. Seplat Energy – N764.9 billion
  8. Zenith Bank – N681.3 billion
  9. GT Holdings – N603.3 billion
  10. Nigerian Brew – N474.9 billion

Point to Note

Mele Kyari, the NNPC group managing director who will take over as Group Chief Executive Officer (GCEO) stated that the NNPC's Initial Public Offering (IPO) to investors will take place in three years.

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This implies that, despite the fact that the corporation has become a public liability company, Nigerians would still have to wait to become shareholders.

NNPC announces no money, despite N1.89trn revenue

In another report, the Nigerian National Petroleum Corporation (NNPC) has announced it has no money to share with federal states and local governments.

Providing a breakdown of its finance, NNPC revealed it made N1.89 trillion in five months, but most of the money has been spent.

World Bank has expressed concern that Nigeria could be heading for a massive fiscal crisis due to continue subsidy payments.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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