The Nigerian National Petroleum Company Limited (NNPC Ltd) is in the "final" stages of preparing for its initial public offering (IPO), company officials confirmed on Thursday. The state-owned oil company is moving forward with plans to list its shares on the stock market, in compliance with the Petroleum Industry Act (PIA) 2021.

Olugbenga Oluwaniyi, the Chief Finance and Investor Relations Officer (CFIO), revealed that NNPC is currently conducting an "IPO Beauty Parade" to engage with prospective partners. The company is seeking investor relations executives, IPO readiness advisers, and investment bank partners, with the best offers to be selected for each category.

The IPO represents a significant milestone for NNPC, which transformed from a state-run entity to a commercially oriented, profit-driven company in July 2022. This transition was a key provision of the Petroleum Industry Act, officially changing NNPC from a corporation to a limited liability company with government bodies remaining as shareholders.

Originally, the oil industry law required NNPC to list its shares within six months of the law's passage in 2021. However, the company has taken additional time to prepare for the public offering. In February 2023, NNPC completed its legal transition by officially taking over its assets after 46 years of operations as a corporation.

The company now operates independently of state funds and must raise financing on its own. NNPC currently holds joint ventures with major oil companies that produce more than half of Nigeria's oil output. The upcoming IPO will be conducted in line with capital market regulations and the Company and Allied Matters Act (CAMA) 1990.

While an exact timeline for the IPO remains unspecified, the company's officials indicate they are in the final preparatory stages. The public offering will allow investors to purchase shares in what was previously a fully state-owned enterprise, marking a significant shift in Nigeria's oil industry governance.