This call follows revelations that NNPCL can no longer supply crude oil to local refineries like Dangote Petroleum Refinery due to forward sales commitments, even as Nigeria recorded its highest importation of petroleum products in the last quarter of 2024.
Despite local crude production now exceeding demand, the country’s dependency on petroleum imports continues to drain scarce foreign exchange (FX) reserves, further weakening the naira.
According to market analysts, over 40% of FX demand is tied to petroleum importers, restricting the availability of FX for importing industrial machinery and raw materials essential for economic growth.
Economic experts argue that NNPCL’s lack of transparency and efficiency could be addressed by listing the company on the Nigerian Exchange (NGX). They maintain that such a move would subject the company’s financial dealings to rigorous market scrutiny and provide a pathway toward improved corporate governance.
“The lack of transparency surrounding NNPCL’s operations is a national concern. A public listing will force the company to adopt global standards of accountability and efficiency. The time to act is now,” said Dr. Hassan Ibrahim, an Abuja-based energy analyst.
The current opacity of NNPCL’s operations has long raised suspicion. An International Oil Company (IOC) executive once described NNPCL as a “piggy bank” for government officials, who allegedly use it for off-budget spending without legislative approval.
This lack of oversight, experts argue, could be corrected by listing the company’s shares, a process that would require it to publish regular financial reports and adhere to corporate governance standards.
The comparison with Saudi Aramco is often cited as a potential model for NNPCL. When Saudi Arabia listed a portion of its national oil company, it raised billions of dollars in capital while improving transparency and operational efficiency.
“NNPCL is sitting on a goldmine of assets that are wasting away.
With the world moving toward renewable energy, the company’s value is declining. Public listing would inject much-needed capital and encourage efficiency,” noted Dr. Ibrahim.
Concerns are also growing over the company’s structure and readiness for listing. Unlike Saudi Aramco, which underwent years of preparation before its successful listing, NNPCL appears to be dragging its feet. No financial or legal advisors have been appointed, suggesting a lack of commitment to the listing process.
Many believe that if NNPCL’s subsidiaries, particularly NNPC Retail, were independently listed, the company could attract massive investments while improving its service delivery. For instance, separating the pipeline division from the retail arm could enhance operational focus, improve safety, and reduce road transportation risks.
Analysts further argue that breaking up the company’s subsidiaries and listing them separately would provide clearer accountability and enhanced profitability.
With the world rapidly transitioning to clean energy, stakeholders insist that NNPCL’s window of opportunity is closing. For Nigeria’s premier oil company, a public listing is not just an option—it is a necessity for survival and relevance.
