FG wants NNPCL, Dangote refinery listed on NGX

The Federal Government has reiterated its commitment to deepening Nigeria’s capital market by encouraging major state-owned and private enterprises, including the Nigerian National Petroleum Company Limited and Dangote Petroleum Refinery, to list their stocks on the Nigerian Exchange.

This move, aimed at boosting investor participation and fostering economic growth, was disclosed by Vice President Kashim Shettima at the 50th Inaugural Lecture of Nasarawa State University, Keffi, on Wednesday.

The Vice President, whose speech was delivered by the Minister of Women Affairs, Imaan Sulaiman-Ibrahim, stressed the critical role of the capital market in achieving economic stability and advancing Nigeria’s ambition of a $1tn economy.

Shettima said Nigeria’s capital market was not just a platform for financial transactions but an essential driver of national development.

He confirmed that the Federal Government was working to encourage NNPC, Dangote Refinery, and Nigeria LNG to list their stocks on the Nigerian Exchange.

The Vice President said, “Nigeria’s capital market is not merely a platform for transactions; it is a driver of national development.

“The implementation of the revised Capital Market Master Plan is restoring investor confidence and attracting new listings, including major entities like NNPC, Dangote Refinery, and NLNG.”

He said such listings would enhance liquidity, deepen the market, and attract global investors. With a 37 per cent stock market surge in 2023 and a 1.5 per cent increase in early 2024, he said the market remained a pillar of economic resilience.

He noted that the Nigerian Exchange had recorded significant growth despite global and domestic economic challenges, with its market capitalisation increasing by N1.95tn in January alone.

Compared to January 2024, the market had seen an N14.44tn increase, reflecting growing investor confidence in the nation’s economic trajectory.

He said, “Nigeria’s capital market is our ticket to economic stability. Its performance, despite global and domestic uncertainties, speaks volumes. In January 2025 alone, the market capitalisation of the Nigerian Exchange Limited appreciated by N1.95tn, reflecting growing confidence in our economic trajectory.

“Compared to January 2024, we recorded an impressive N14.44tn increase. These figures are not just statistics; they are indicators of the steady hand guiding our economy under the leadership of President Bola Tinubu.”

Shettima described the $1tn economy vision as an achievable goal driven by bold and strategic reforms, aimed at deepening the financial market, strengthening investor confidence, and unlocking opportunities for sustainable growth.

He highlighted the ongoing banking sector recapitalisation as a key driver of investor sentiment, with the NGX Banking Index rising by 9.76 per cent year-to-date.

He also pointed to the robust performances of major financial institutions, including Zenith Bank, GTCO, and United Bank for Africa, as clear indicators of resilience within the sector.

He further disclosed that Nigeria’s pension fund assets had reached an unprecedented N20.5tn as of December 2024, while federal revenue collections exceeded expectations, rising to N27bn, which represents 120 per cent of the projected target and a 70 per cent increase from 2023.

He attributed these gains to President Bola Tinubu’s pro-business policies and the government’s commitment to fiscal discipline and investment-friendly reforms.

The Vice President reaffirmed the government’s dedication to strengthening the capital market through the implementation of the revised Capital Market Master Plan.

He said the Securities and Exchange Commission had earmarked N51.49bn in its 2025 budget to support key initiatives aimed at expanding market participation and boosting investor confidence.

He explained that these initiatives include enhanced regulatory oversight, the adoption of advanced technology, and the introduction of innovative financial products.

He noted that Nigeria’s recent successful Eurobond issuance, which was completed without a roadshow, was further proof of growing global confidence in the nation’s economic stability.

He also affirmed the government’s investment in Sovereign Sukuk bonds, which had raised N1.1tn to finance 124 federal road projects spanning 5,820km across the country’s six geopolitical zones.

Agreements with the International Finance Corporation, he added, were expected to expand electricity access to 400,000 Nigerians, ensuring that infrastructure bottlenecks do not hinder economic progress.

The Vice President further commended Prof Uche Uwaleke, whose lecture focused on the role of the capital market in economic transformation.

He noted that the scholar’s contributions had provided valuable insights into policy development and financial sector reforms, urging policymakers, private sector leaders, and academics to collaborate in sustaining and expanding the capital market’s role in economic growth.

He said the government remained committed to building a stronger financial sector, promoting investor confidence, and ensuring Nigeria’s sustainable economic prosperity.

During his 50th Inaugural Lecture titled “Unlocking Wealth and Leveraging Entrepreneurial Knowledge Ecosystem: Understanding Capital Harnessing Essentials,” held on Wednesday, Prof Uche Uwaleke, a Professor of Capital Market at Nasarawa State University, Keffi, urged the Federal Government to sell stakes in state-owned enterprises through the Nigerian Exchange as a means of raising long-term capital for national development.

He said, “The Federal Government is therefore advised to sell stakes in state-owned enterprises through the Exchanges to raise funds for development. For instance, the FG can make it possible for the public to invest in the oil and gas sector through the creation of a Special Purpose Vehicle which can be listed on the Nigerian Exchange.”

Uwaleke emphasised that listing state-owned enterprises on the stock exchange would not only enhance transparency and efficiency in their operations but also create opportunities for Nigerians to invest in critical sectors of the economy.

He suggested that the government should explore the option of establishing a Special Purpose Vehicle to allow public investment in the oil and gas sector, which could then be listed on the NGX to attract both local and international investors.

According to him, privatisation through the stock market has been a successful model in emerging economies, where it has significantly deepened the capital market and increased investor participation.

He noted that Nigeria’s capital market remains underutilised, with its total capitalisation still below 15 per cent of Gross Domestic Product.

He also observed that the issuer base on the NGX lacks diversity, with just 10 out of 151 listed companies accounting for over 60 per cent of market capitalisation.

Uwaleke said, “Much as the Nigerian capital market has recorded remarkable improvements in the last decade, a number of challenges inhibit the realization of its potentials.

“It goes without saying that at less than 15 per cent of the Nigeria’s GDP, the current size of the capital market constrains its role in national economic development.

“Also, the issuer base is not diversified with the NGX dominated by a few companies which leaves the market vulnerable to shocks. This is demonstrated by the fact that only 10 (out of 151 listed companies) account for over 60 per cent of equities market capitalisation.”

He identified fiscal inefficiencies as a major obstacle to wealth creation in Nigeria, citing weak domestic output, a massive infrastructure deficit, and funding mismatches in budget implementation.

He noted that funds raised from the debt capital market, which were intended for capital projects, had often been diverted to recurrent expenditures, in violation of the Fiscal Responsibility Act 2007.

This, he said, had hindered efforts to unlock the country’s vast but idle resources.

Uwaleke called for a shift in government borrowing strategy, advocating that debt plans should be linked to debt service ceilings rather than solely to GDP.

He argued that borrowing should be restricted to self-liquidating projects, while urging the government to explore alternative funding sources, such as the Renminbi market, to secure cheaper financing options.

As part of a strategy to revitalise the capital market and attract long-term investment, he proposed the IPO (Incentives, Privatisation, Optimisation) approach.

He recommended tax incentives for newly listed companies, such as corporate tax reductions and temporary tax holidays, to encourage more firms to go public.

He further suggested that universities could tap into the capital market by issuing bonds to fund research and infrastructure projects, noting that top institutions in the United States, Canada, and the United Kingdom have successfully raised capital through such means.

To make this viable in Nigeria, he proposed that the Federal Government provide guarantees for bonds issued by first-generation universities, thereby improving their credit ratings and attracting investor interest.

Uwaleke also advocated for the optimisation of public assets through infrastructure bonds, such as Sukuk and Green Bonds, to finance renewable energy, smart cities, and sustainable development projects.

Citing Malaysia’s success in leveraging capital markets to fund large-scale infrastructure, he said Nigeria could replicate this model to bridge its infrastructure gap.

He called for the securitisation of public infrastructure, proposing that the government issue securities backed by revenue streams from toll roads and utility payments.

He revealed that the Ministry of Finance Incorporated had already identified over 70 entities in its national asset register that could be leveraged to raise capital.

He also encouraged the government to promote Real Estate Investment Trusts as a means of unlocking capital for housing development while developing a robust secondary mortgage market to improve access to affordable housing finance.

Uwaleke stressed that unlocking Nigeria’s hidden wealth through the capital market would require a well-structured approach centred on incentivising capital formation, privatising public enterprises, and optimising existing resources.

Last year, the Chairman of Nigerian Exchange Group, Dr Umaru Kwairanga, disclosed that two companies in the Dangote Industries Group will be listed on the exchange soon.

Speaking at a closing-gong ceremony in honour of the Senate Committee on Capital Market and Institution’s visit to the NGX headquarters in Lagos in February 2024, he said, “As at last week, the president of Dangote assured me that the Dangote Refinery is going to be listed on this market very soon. He also said that apart from the refinery, he is going to list the fertiliser company (Dangote Fertiliser Limited). This is a commitment from the private sector.

“We have the Geregu that is listed and we believe that there are other GenCos that can use the opportunity of these National Assembly members here and our regulator to make sure we bring them to the market.

“We need to have a legislative agenda that will force the NNPCL, NLNG, PFAs to list on this market and we assure you that we have the capacity to ensure that all listings are for the benefit of the investing public.”

The PUNCH also reported in 2023 that some operators called for the listing of the Nigerian National Petroleum Company Limited on the Nigerian capital market, saying it would boost the capitalisation of the market as well as add value to the energy company.