The Nigerian National Petroleum Company Limited (NNPCL) is nearing the final stage of its highly anticipated initial public offering (IPO), as mandated by the Petroleum Industry Act of 2021.
In a statement released on Tuesday, the Africa Energy Chamber noted that NNPCL, alongside other national oil companies in Africa, such as Angola’s Sonangol, is progressing with its IPO to strengthen investment and competitiveness in Africa’s oil and gas sector.
These IPOs are expected to attract significant global investments, providing essential capital to enhance production capacity, improve infrastructure, and drive long-term industry growth. The statement highlighted that this move is part of a broader trend among African nations seeking to modernize and diversify their energy sectors, aiming for greater transparency and accountability within state-owned enterprises. It also positions the continent as a more appealing investment destination in the global energy market.
The Chief Finance and Investor Relations Officer at NNPCL, Olugbenga Oluwaniyi confirmed that the company is actively working with prospective investor relations executives and investment banks to ensure a smooth process. This initiative is aimed at transforming NNPC into a fully commercial entity that can independently raise capital without relying on state funding.
The IPO is expected to improve transparency, corporate governance, and attract both domestic and international investors to Nigeria’s oil and gas sector.
Similarly, Angola’s state oil company, Sonangol, has reiterated its commitment to proceeding with an IPO, offering up to 30% of its shares to the public. This partial privatization is aimed at generating capital for exploration and production projects, allowing Sonangol to compete more effectively in the global upstream market.
CEO of Sonangol, Sebastião Martins emphasized that the company is undertaking the necessary internal preparations for this process, aligning with Angola’s broader strategy to diversify its economy and attract foreign investment.
The IPOs of NNPC and Sonangol signal a transformative shift in Africa’s oil and gas industry. By opening up to public investment, these companies aim to improve operational efficiency, foster transparency, and stimulate economic growth across the continent.
