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Why Nigeria’s Oil Company Is Considering An IPO

Africa’s oil and gas industry is facing a financial onslaught as a result of a combination of COVID-19, activist shareholders and the so-called Greening of IOCs such as Shell, Total and BP.

While the oil majors all seem to be preparing for an energy transition and peak oil demand, African countries are betting on a hydrocarbon future.

As Shell, BP, and Total make headlines with their diversification away from oil, the largest Sub-Saharan oil and gas producer Nigeria is taking the opposite route.

In a long-awaited revision of the Nigerian oil and gas sector, which has been rife with corruption, fraud, and mismanagement by former governments, a bill proposing a possible IPO of the national oil company Nigerian National Petroleum Corporation (NNPC) is now being discussed by parliament. In the new proposal, NNPC will be changed into a limited liability company, fully operating on a commercial basis. NNPC Ltd is to be managed by the Nigerian Ministry of Finance.