- The initial public offering allows key partners to support NNPC in three crucial areas: investor relations, IPO readiness advisory, and investment banking.
In a significant step toward financial transparency and operational efficiency, the Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that it is in the final stages of preparing for an initial public offering (IPO), in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The company’s Chief Finance and Investor Relations Officer, Olugbenga Oluwaniyi, disclosed this on Thursday during a consultative meeting with prospective partners at the NNPC Towers in Abuja.
According to him, NNPC Ltd is currently conducting an ‘IPO Beauty Parade,’ an industry-standard process that allows potential investors and advisors to present their credentials before the formal share offering.
The IPO process involves selecting key partners to support NNPC Ltd in three crucial areas: investor relations, IPO readiness advisory, and investment banking. The state-owned oil giant aims to pick the most competitive proposals to ensure a smooth transition into a publicly traded company.
NNPC Ltd’s spokesperson, Olufemi Soneye, stated that the move aligns with the PIA’s mandate to list the company’s shares under the Companies and Allied Matters Act (CAMA) 1990. This transition marks a historic shift from a government-controlled corporation to a commercially driven entity.
The listing of NNPC Ltd’s shares will open up opportunities for institutional investors and could enhance corporate governance, boost financial accountability, and attract private capital into Nigeria’s oil and gas sector. Analysts believe the IPO could reshape the industry, making NNPC Ltd more competitive in the global energy market.
While the company has previously announced IPO plans, this latest development signals a more concrete step toward execution. Market watchers will be closely monitoring the outcome of the selection process and the timeline for the eventual public offering.