The Nigerian National Petroleum Company Limited (NNPCL) is currently undergoing a significant restructuring process aimed at getting the company ready for a future Initial Public Offering (IPO). According to the company’s Chief Financial Officer, Adedapo Segun, the reforms are focused on improving corporate governance and changing the company’s internal culture to meet global standards.
Speaking at the Nigeria Oil and Gas Energy Week in Abuja, Segun described the IPO as a key part of a broader national transformation plan. He acknowledged that the shift from a government-owned entity to a public company has not been easy, especially due to the long-standing government culture within the organization.
He said that several aspects of NNPCL’s operations are already being adjusted to match the expectations of the stock market. This includes internal training, structural realignments, and improvements in governance and transparency.
Segun stressed that the company is working hard to prepare every department for the change, noting that some parts of the organization are already “IPO-ready.” However, he also pointed out that cultural change remains one of the most difficult aspects of the transition, especially after decades of operating under the old NNPC structure.
NNPCL became a limited liability company in July 2022 following the implementation of the Petroleum Industry Act. Since then, it has been trying to operate as a profit-driven business rather than a state-funded body.
This is not the company’s first attempt at going public. Previous efforts in 2018 and 2023 failed to materialize due to various internal and external challenges. Segun noted that this time, the company is determined to get it right by making necessary changes in phases.
Despite the progress made, NNPCL still has some financial challenges to address. It has not yet released its audited accounts for 2024 and must improve its financial health by maintaining positive cash flow, reducing debt, and ensuring steady revenue growth.
Segun urged Nigerians to support the transformation process, stating that the IPO is meant to position NNPCL as a modern, accountable, and high-performing energy company that delivers long-term value to all stakeholders.
