The Nigerian National Petroleum Company Limited (NNPCL) has commenced a sweeping corporate governance overhaul in preparation for its long-anticipated Initial Public Offering (IPO), according to the company’s Chief Financial Officer, Adedapo Segun.
Speaking during a panel session at the 24th Nigeria Oil and Gas Energy Week in Abuja on Friday, Segun confirmed that the transition from a government-run enterprise to a publicly listed company is underway, describing the IPO initiative as part of a broader “national transformation agenda.”
“We have been working on the preparation for quite a while now,” Segun stated. “For us, this is more than a corporate milestone, it is a national imperative. We are realigning our structure, culture, and operations to match global standards expected of listed companies.”
NNPCL, which became a limited liability company in July 2022 following the implementation of the Petroleum Industry Act, has since operated with commercial autonomy. However, decades of bureaucratic legacy continue to pose structural and cultural hurdles.
One of the most formidable challenges, according to Segun, lies in transforming the internal culture of the organisation. Having operated for decades under the defunct NNPC Act, the transition to a market-oriented mindset has proven complex.
“We are addressing that through reorientation and also through dilution,” he said. “It’s not something you turn around overnight. But we’re determined. Corporate governance is being restructured in phases, and some segments of the organisation are already IPO-ready.”
The CFO added that ongoing efforts include redefining corporate governance frameworks, reforming internal processes, and creating an operating environment conducive to transparency, accountability, and sustainable growth. He noted that executive leadership is already aligned with IPO standards, but the goal is to ensure readiness across all departments and levels of the organisation.
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The public listing of NNPCL, if realised, would mark a significant shift in Nigeria’s oil and gas landscape. It would open the state-owned firm to public investment, market scrutiny, and a more rigorous performance mandate. However, this transformation is still contingent on critical preconditions, including publishing audited financial statements and cleaning up years of opaque subsidy payments and quasi-fiscal interventions.
The company’s financial records, including its 2024 audited accounts, are yet to be made public. Analysts note that this lack of financial clarity remains a major stumbling block in gaining investor confidence. For a successful IPO, NNPCL must also demonstrate strong cash flow, a stable debt-to-equity ratio, and consistent revenue growth.
Moreover, the company will need to confront potential investor scepticism born of previously failed attempts at listing. In 2018 and again in 2023, IPO plans were announced but never came to fruition, undermining credibility and raising questions about the feasibility of current efforts.
Segun called on Nigerians to support the company’s transformation process, framing the IPO as a patriotic imperative rather than a purely financial transaction.
“This is a call to all Nigerians to rise and support this transformation. We are building a world-class company capable of delivering long-term value to stakeholders and the economy,” he said.
If successful, the IPO could become a turning point for Nigeria’s economic diversification and oil sector reform agenda. It would also set a precedent for how state-owned enterprises can transition into competitive market actors under the right legal and governance frameworks.
However, the road to public listing remains uncertain. The complexities of legacy debt, cultural inertia, and political interference could delay or derail progress unless there is a sustained commitment at both executive and legislative levels to uphold transparency and protect investor interests.
As the global energy transition continues to reshape investment priorities, NNPCL’s ability to align with environmental, social, and governance (ESG) benchmarks will also factor into its attractiveness to international investors.
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