Federal Government Encourages NNPC, Dangote Refinery to List on NGX

The Federal Government has reiterated its commitment to strengthening Nigeria’s capital market by encouraging major state-owned and private enterprises to list their stocks on the Nigerian Exchange (NGX).

Vice President Kashim Shettima disclosed this development at the 50th Inaugural Lecture of Nasarawa State University, Keffi, on Wednesday, where his speech was delivered by the Minister of Women Affairs, Imaan Sulaiman-Ibrahim.

Shettima emphasised the capital market’s critical role in advancing Nigeria’s economic ambitions and positioning the country toward a $1 trillion economy.

According to the Vice President, the government is actively working to ensure that NNPC, Dangote Refinery and Nigeria LNG (NLNG) list their stocks on NGX as part of a broader strategy to enhance market liquidity, attract global investors and deepen the financial sector.

“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,” Shettima stated.

Despite domestic and global economic challenges, Nigeria’s stock market has remained resilient, recording a 37% surge in 2023 and a 1.5% increase in early 2024.

In January alone, market capitalization on the NGX rose by N1.95 trillion, reflecting growing investor confidence in the nation’s economic direction.

The Vice President described the $1 trillion economy vision as a realistic target driven by strategic reforms aimed at boosting capital market participation, strengthening investor confidence, and unlocking new investment opportunities.

He mentioned the ongoing banking sector recapitalization, which has positively influenced the market, with the NGX Banking Index rising by 9.76% year-to-date.

Also, Shettima disclosed that Nigeria’s pension fund assets had reached N20.5 trillion as of December 2024, while federal revenue collections exceeded projections, rising to N27 billion, representing 120% of the expected target and a 70% increase from 2023.

The Federal Government’s commitment to the capital market expansion is further reflected in its 2025 budget, where the Securities and Exchange Commission (SEC) allocated N51.49 billion to initiatives designed to enhance market participation and boost investor confidence. These include regulatory oversight improvements, advanced financial technology adoption, and the introduction of innovative financial products to further attract investors.

Shettima also pointed to Nigeria’s successful Eurobond issuance, which was completed without a roadshow, as evidence of growing global confidence in the country’s financial stability. The government’s investment in Sovereign Sukuk bonds, which raised N1.1 trillion to finance 124 federal road projects, was also highlighted as part of broader efforts to improve infrastructure and support long-term economic growth.

Professor Uche Uwaleke, a leading capital market expert, echoed the government’s stance by urging the Federal Government to sell stakes in state-owned enterprises through NGX. He emphasized that such listings would enhance transparency, increase operational efficiency, and create broader investment opportunities for Nigerians.

He proposed the establishment of a Special Purpose Vehicle (SPV) to facilitate public investment in Nigeria’s oil and gas sector, a model that has successfully deepened capital markets in other emerging economies.

As the Federal Government intensifies efforts to position Nigeria’s capital market as a key driver of economic transformation, market analysts believe that the potential listings of NNPC, Dangote Refinery, and NLNG could be landmark moves, unlocking significant capital inflows and further reinforcing Nigeria’s position as a major investment destination in Africa.