The Business NG - March 17, 2025

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NNPCL’s Opacity Demands Urgent Reform Through Public Listing

Today’s editorial focuses on the growing calls for transparency and accountability at the Nigerian National Petroleum Company Limited (NNPCL). Despite local crude production now exceeding demand, Nigeria remains heavily dependent on petroleum imports, a situation draining scarce foreign exchange reserves and weakening the naira. With over 40% of FX demand linked to petroleum imports, essential sectors like manufacturing continue to suffer from inadequate access to foreign currency.

NNPCL’s inability to supply crude oil to local refineries, including the Dangote Petroleum Refinery, due to forward sales commitments further underscores the depth of the problem. Analysts argue that the company's current opacity and inefficiency can only be addressed by a public listing on the Nigerian Exchange (NGX).

A public listing, they contend, would subject NNPCL’s financial dealings to rigorous market scrutiny and promote improved corporate governance. This sentiment is echoed by energy experts like Dr. Hassan Ibrahim, who insists that adopting global standards of accountability and efficiency through a public listing is urgently needed.

The NNPCL must embrace transparency to restore public confidence and improve operational efficiency. Anything less will continue to hinder economic growth and exacerbate Nigeria’s foreign exchange crisis.