Nigeria’s NNPC Ramps Up Transparency

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPC), is stepping up its transparency measures as it prepares for a long-delayed initial public offering (IPO), in line with requirements under the 2021 Petroleum Industry Act (PIA).

Speaking at the ADIPEC Energy Conference in Abu Dhabi on Tuesday, NNPC Chief Executive Officer Bayo Ojulari confirmed that the company is taking significant steps to meet governance and disclosure standards expected of a publicly listed entity. He emphasised that the IPO process is not optional but a legal obligation under the PIA.

“The IPO journey is by law. The PIA prescribes for NNPC to journey towards achieving an IPO. It’s not an option for us,” Ojulari stated, adding that improving transparency was a key part of the company’s preparation.

To this end, NNPC began publishing its monthly performance reports in May — a move aimed at demonstrating operational accountability and enhancing investor confidence. The reports detail the firm’s financial performance, production figures, and project updates across its vast energy portfolio.

Ojulari also revealed that NNPC is working to increase its stake in the Dangote Petroleum Refinery to 20 per cent, a strategic step designed to secure stronger downstream influence and bolster domestic refining capacity. The Dangote Refinery, Africa’s largest, began operations last year but has faced headwinds, including competition from cheaper fuel imports.

In addition, NNPC is seeking technical equity partners to help revitalise three of its long-dormant refineries — in Port Harcourt, Warri, and Kaduna — which have remained inactive despite extensive rehabilitation investments. Restoring these facilities, Ojulari said, is vital to reducing Nigeria’s heavy dependence on imported refined products.

Analysts note that a successful IPO could mark a historic turning point for NNPC, transforming it from a state-run enterprise often criticised for opacity into a commercially driven, investor-backed entity. However, they caution that transparency, regulatory clarity, and sustained reform will be essential to attract global investors.

The company has yet to announce a specific timeline for the IPO, but Ojulari’s remarks suggest that preparatory work is accelerating. “We have begun to publish our monthly performance since May this year, and that has continued,” he reiterated, framing openness as the foundation of the company’s future.

As Nigeria seeks to modernise its oil industry and draw foreign investment, NNPC’s transformation could serve as both a symbol and a test of reform. In the words of one analyst, “For NNPC, the road to an IPO runs through the refinery — and the truth.”