NESG evaluates NNPC’s push for transparency through public listing

In a recent media interactive session held in Abuja on Friday, March 28, Dr. Tayo Aduloju, CEO of the Nigerian Economic Summit Group (NESG), articulated his strong support for the transition of the Nigerian National Petroleum Company Limited (NNPC) into a publicly listed entity.

He emphasised that such a move would enhance transparency and align NNPC with international corporate governance standards, ultimately benefiting all Nigerians.

"I have been a strong proponent of taking NNPC public and making it a more transparent Nigerian asset. The more transparent it is, the more it complies with international corporate governance requirements, [and] very likely NNPC will work better for all Nigerians," Dr. Aduloju stated.

The journey towards public listing is indeed complex and lengthy. Dr. Aduloju drew parallels with Saudi Aramco's trajectory, noting that their transformation began years ago with initial steps similar to those NNPC is currently considering.

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He outlined a phased approach: first, listing domestically; then, cleaning up assets to comply with both national and international corporate governance standards; and finally, making the asset attractive to both domestic and international investors.​

"Once you've done that, then you make that asset attractive to portfolio investors. You make that asset attractive to internationally imported and other stock exchanges, and that begins to change the trajectory of the asset," he explained.

NNPC's Journey to Public Listing

The push for NNPC's public listing aligns with recent developments within the company. Sometime in March 2024, Mele Kyari, the NNPC's Group Chief Executive Officer, while speaking at the CeraWeek Conference in Houston, United States, indicated that the public listing was "within sight," emphasising the company's commitment to becoming a fully accountable and commercially viable entity. ​

In addition to discussing the public listing, Dr Aduloju addressed NNPC's decision to end its exclusive role as the sole buyer of petrol from the Dangote Oil Refinery.

READ ALSO: Dangote shuts down fuel supply to Nigeria as naira-for-crude deal stalls

This policy shift allows local fuel traders to purchase directly from the refinery, fostering a more competitive market environment and potentially stabilising supply chains.

Finance Minister Wale Edun highlighted that this direct purchasing mechanism enables marketers to negotiate commercial terms directly with refineries, promoting competition and efficiency.

Dr. Aduloju's remarks underscore the critical importance of transparency, strategic planning, and regulatory foresight in navigating the complex landscape of Nigeria's oil sector reforms.

By drawing on international examples and emphasising the need for a phased, well-considered approach, his insights provide a valuable roadmap for the nation's journey towards a more efficient and transparent petroleum industry.