The Nigerian National Petroleum Corporation (NNPC) Limited was incorporated on July 1, 2022, under the Petroleum Industry Act (PIA) 2021. The PIA is a landmark legislation that transforms the NNPC from a state-owned oil company to a commercially oriented national petroleum company.
One of the key provisions of the PIA is the privatization of the NNPC. The Federal Government of Nigeria (FGN) will initially own 100% of NNPC Limited, but the PIA mandates the FGN to reduce its ownership to 49% within six years of the PIA’s enactment. The remaining 51% of NNPC Limited’s shares will be offered to the public through an initial public offering (IPO).
The new shareholders of NNPC Limited will therefore be the FGN and the general public. The FGN will retain a 49% stake in the company, while the general public will own the remaining 51% of the shares.
Detailed insights
The PIA provides that the FGN will divest its 51% stake in NNPC Limited through an IPO. The IPO is expected to take place within six years of the PIA’s enactment, i.e., by June 30, 2027.
The specific identity of the new shareholders of NNPC Limited is not yet known, as the IPO has not yet taken place. However, it is expected that the IPO will be attractive to a wide range of investors, including domestic and international institutional investors, retail investors, and NNPC Limited’s employees.
The privatization of NNPC Limited is a significant development for the Nigerian oil and gas industry. It is expected to attract new investment and expertise to the sector, and to improve the efficiency and transparency of NNPC Limited’s operations.
Conclusion
The privatization of the NNPC is a significant development for the Nigerian oil and gas industry. It is expected to attract new investment and expertise to the sector, and to improve the efficiency and transparency of NNPC Limited’s operations. The new shareholders of NNPC Limited will be the FGN and the general public.
Related FAQs
What is the difference between NNPC and NNPC Limited?
NNPC was a state-owned oil company, while NNPC Limited is a commercially oriented national petroleum company. NNPC Limited is also subject to stricter governance and transparency requirements than NNPC.
What are the benefits of privatizing NNPC?
The privatization of NNPC is expected to attract new investment and expertise to the Nigerian oil and gas sector, and to improve the efficiency and transparency of NNPC Limited’s operations.
Who will be the new shareholders of NNPC Limited?
The new shareholders of NNPC Limited will be the FGN and the general public. The FGN will retain a 49% stake in the company, while the general public will own the remaining 51% of the shares.