African oil giants advance initial Public Offering (IPO) plans to attract investment

In a bid to bolster investment and competitiveness within Africa’s oil and gas sector, national oil companies (NOCs) in Nigeria and Angola are progressing with long-anticipated initial public offerings (IPOs). These IPOs are poised to attract significant global investment, providing much-needed capital to enhance production capabilities, improve infrastructure and foster long-term growth. This move reflects a broader trend of African nations seeking to modernize and diversify their energy sectors, signaling a shift toward greater transparency and accountability in state-owned enterprises, while also positioning the continent as a more attractive investment destination in the global energy market. The Nigerian National Petroleum Company (NNPC) has announced it is in the final stages of preparing for its IPO, as mandated by the Petroleum Industry Act of 2021. Chief Finance and Investor Relations Officer, Olugbenga Oluwaniyi, stated that the company is engaging with prospective investor relations executives and investment banks to facilitate the process. This initiative aims to transition NNPC into a fully commercial entity capable of independently raising capital without reliance on state funds. The IPO is expected to enhance transparency, improve corporate governance and attract both domestic and international investors to Nigeria’s oil and gas industry.
Similarly, Angola’s NOC Sonangol has reaffirmed its intention to proceed with an IPO, offering up to 30% of its shares to the public. This partial privatization is designed to generate capital to support exploration and production projects, positioning Sonangol as a more competitive player in the global upstream market. CEO Sebastião Gaspar Martins emphasized that the company is undertaking necessary internal preparations to initiate this process, aligning with Angola’s broader strategy to diversify its economy and attract foreign investment. The planned IPOs of NNPC and Sonangol represent a transformative shift in Africa’s oil and gas industry. By opening up to public investment, these companies aim to enhance operational efficiency, foster transparency and stimulate economic growth. The influx of capital from these IPOs is anticipated to fund critical infrastructure projects, advance technological innovation and expand exploration activities across the continent. While historically NOCs have been primarily state-controlled entities with limited outside investment, this move signals a growing recognition of the need for private sector involvement to drive sustainable development and foster more dynamic, competitive markets.
Moreover, these developments assure global investors that African nations are committed to creating conducive environments for investment, characterized by improved regulatory frameworks and corporate governance standards. This shift is expected to increase the continent’s competitiveness in the global energy market, attracting further investments into Africa’s rich hydrocarbon resources. “The timing of these IPO developments aligns strategically with African Energy Week 2025: Invest in African Energies, a premier event dedicated to promoting investment and collaboration in Africa’s energy sector. African Energy Week serves as a platform for policymakers, industry leaders and investors to engage in dialogue, showcase opportunities and forge partnerships that will drive the continent’s energy future. The progress of NNPC and Sonangol’s IPOs is expected to be a focal point during the event, highlighting the ongoing reforms and investment prospects within Africa’s oil and gas industry. As Africa continues to navigate the complexities of the global energy transition, the successful execution of these IPOs could set a precedent for other national oil companies on the continent, encouraging broader market liberalization and increased private sector participation in the energy sector.,” says Oré Onagbesan, Program Director, African Energy Week.