Abuja is putting the opening of equity in two state-owned or state-linked energy companies back on the table: the Nigerian National Petroleum Company (NNPC) and Nigeria LNG (NLNG). Vice President Kashim Shettima discussed their listing on October 19 at a capital markets conference. The announcement forms part of a plan to raise Nigeria’s stock market capitalization to 750 trillion naira, or approximately $500 billion, by 2036.
Finance Minister Taiwo Oyedele argues that giving investors access to shares in major national companies could broaden the market and strengthen transparency. A stock market listing would also require the companies concerned to provide shareholders with regular information on their accounts, governance and performance. However, it does not by itself guarantee better management: that would depend on oversight rules and the rights granted to new shareholders.
Two companies, two ownership structures
NNPC is wholly owned by the Nigerian state. Its transformation into a commercial company was provided for under the 2021 Petroleum Industry Act, but the listing has been postponed several times. Its chief executive, Bayo Ojulari, has previously mentioned a 2028 time frame. The company says it is working to improve its accounts and governance, necessary steps before a credible opening to investors.
NLNG presents a more complex case. The state holds 49%, while Shell, TotalEnergies and Eni together own the remaining 51%. Any listing decision would therefore need to account for these partners’ contractual rights and interests. Neither their approval nor a precise timetable has been made public as part of the current revival of the plan.
The distinction matters: the state can decide on its own to initiate a change in NNPC’s ownership, whereas NLNG involves foreign private shareholders. In both cases, the share of equity potentially to be sold, valuation method, governance safeguards and use of any proceeds remain to be defined.
A signal to capital markets
The project forms part of Nigeria’s strategy to mobilize domestic financing and diversify ownership of public assets. A listing could attract local institutional investors, increase stock market liquidity and give citizens exposure to the performance of strategic companies. But it would also place the businesses under market scrutiny, with investors assessing regulatory risks, debt, earnings quality and revenue stability.
NNPC’s recent performance calls for caution. After a 33% increase in annual profit in 2025, the group recorded a 35.4% decline in profit in the first half of 2026, to approximately 2.28 trillion naira. Investors will need to distinguish the long-term value of the company’s assets from earnings fluctuations linked to oil prices, costs, operations and public obligations.
Credibility will depend on execution
The political revival of the listing does not mean the transaction is ready. Audited financial statements must be published, state commitments clarified, an independent governance framework established, and relationships between the companies, regulator and Treasury specified. NLNG’s structure adds negotiations with its partners, while NNPC must demonstrate that its legal transformation is accompanied by practices suited to capital markets.
The ongoing listing of the Dangote refinery is being watched as a major transaction for Nigeria’s market. It does not predetermine the success of a future NNPC or NLNG listing: their size, shareholders and public responsibilities differ. For investors, the first indicator will be publication of a concrete timetable and transparent disposal rules. Until then, listing remains a reaffirmed ambition rather than a scheduled transaction.