Tinubu Announces Major NNPC Reform, Reveals Plan to Sell Oil Company's Shares to Nigerians
- President Bola Tinubu announced plans to reform the NNPC and list it on Nigeria's capital market during a meeting with NGX Group leaders
- NNPC Group CEO Bayo Ojulari had earlier revealed the company has a roadmap to achieve a stock exchange listing by 2028
- Nigeria Revenue Service chairman Zacch Adedeji linked the subsidy removal to the economic changes now taking shape under Tinubu
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
President Bola Tinubu has confirmed that the Nigerian National Petroleum Company (NNPC) Limited will undergo reforms and be listed on the Nigerian capital market, signalling a significant shift in the future of Nigeria's state oil company.
Tinubu made the announcement on Friday during a meeting at the State House with the board and management of the Nigerian Exchange Group (NGX).
Source: UGC
The delegation was led by NGX Group Chairman Umaru Kwairanga and Group Managing Director and CEO Temi Popoola.
"The NNPC will be reformed and listed in the capital market," Tinubu said at the meeting.
He added that feedback from economic experts and positive economic indicators point to a more promising future for Nigerians.
NNPC eyes 2028 stock exchange listing
The president's remarks align with a position the NNPC's own leadership had already outlined. On July 12, NNPC Group CEO Bayo Ojulari said the company was working towards a stock exchange listing by 2028, describing the planned transition as a transformation of the national oil company into a fully structured limited liability company.
"With collaborations of our industry players, we will be the catalyst in the transformation of the national oil company to a limited liability company," Ojulari said. "We have a roadmap to be listed by 2028."
Ojulari also said the company had made "considerable progress" in building a stable and secure business environment in Nigeria.
Subsidy removal cited as foundation for change
Also present at the meeting, Zacch Adedeji, executive chairman of the Nigeria Revenue Service (NRS), said the removal of the petrol subsidy marked a turning point for the country's economy, correcting distortions that had persisted for roughly four decades.
Adedeji said Tinubu's decision to scrap the subsidy within the first hour of taking the oath of office "is the bedrock, background, and fundamental of the changes we are seeing."
Source: UGC
The subsidy removal, announced at Tinubu's inauguration in May 2023, triggered a sharp rise in fuel prices across Nigeria but was defended by the administration as a necessary step to free up government revenue and attract investment.
Tinubu scraps NNPC's 30% management fee
Meanwhile, Legit.ng earlier reported that President Tinubu eliminated the 30 per cent management fee previously retained by NNPC Limited on Profit Oil and Profit Gas.
The federal government argued that the dual deductions significantly reduced revenue available to federal, state and local governments under the PIA.
An inter-ministerial implementation committee has been set up to oversee compliance and ensure effective execution of the directive.
Source: Legit.ng
