Nigeria pushes for NNPCL and Dangote Refinery listings to boost capital market

Nigeria’s government wants the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Petroleum Refinery to be listed on the Nigerian Exchange (NGX) to deepen the country’s capital market and attract international investors, The Punch has reported.

NNPCL is Nigeria’s state-owned oil company, while the Dangote Petroleum Refinery—Africa’s largest—is privately owned by the Dangote Group.

The government’s push for their listing was announced by Minister of Women Affairs, Imaan Sulaiman-Ibrahim, who highlighted the role of market reforms in advancing Nigeria’s vision of a $1 trillion economy.

Sulaiman-Ibrahim noted that the revised Capital Market Master Plan is restoring investor confidence, citing a 37% surge in the stock market in 2023 and a further 1.5% increase in early 2024.

“Nigeria’s capital market is our ticket to economic stability. Its performance, despite global and domestic uncertainties, speaks volumes,” she is quoted as saying, attributing recent stock market gains to President Bola Tinubu’s pro-business policies.

Professor Uche Uwaleke of Nasarawa State University backed the proposal, advocating for the sale of stakes in state-owned enterprises through the NGX to generate long-term capital. He argued that privatisation via the stock market, as seen in other emerging economies, could improve transparency and efficiency.

Uwaleke also pointed out that Nigeria’s capital market remains underutilised, with just 10 of the 151 listed firms accounting for over 60% of total market capitalisation.