December 02, (THEWILL) — The Centre for Economic Accountability and Rescue (CEAR) has commended the Nigerian National Petroleum Company Limited (NNPC Ltd.) for posting an impressive N5.4 trillion profit for 2024, describing it as one of the clearest indicators yet that ongoing reforms in the national oil company are translating into sustainable, market-driven growth.
CEAR noted that beyond its significance for the energy sector, the NNPC’s performance carries major implications for the Nigerian capital market, particularly at a time when investors are seeking strong fundamentals, improved governance, and credible long-term value.
According to CEAR, the scale of the 2024 profit signals:
1. Improved Valuation Prospects Ahead of a Potential IPO (Initial Public Offering)
With the NNPC already operating under the framework of the Petroleum Industry Act (PIA), CEAR said the profitability boost strengthens the company’s outlook ahead of any future decision to list on the Nigerian Exchange (NGX).
This level of performance, the group explained, could position NNPC as one of Africa’s most valuable listings, attracting both local and international institutional investors.
2. Enhanced Liquidity and Market Depth
CEAR stated that the strong financials send a positive ripple across the market by improving sentiment toward state-linked enterprises.
A possible eventual public listing of NNPC or any of its subsidiaries would deepen the Nigerian capital market, expand sectoral representation, and draw significantly more liquidity into the equity market.
3. Increased Foreign Portfolio Investor (FPI) Confidence
Robust profit numbers from a national oil company often serve as an anchor for broader market optimism. CEAR stressed that NNPC’s performance could support Nigeria’s narrative as a reviving investment destination, helping to attract FPIs seeking exposure to frontier-market energy plays.
4. Stronger Corporate Governance Signalling
CEAR praised the reforms that have driven the turnaround, saying they mirror global best practices in transparency, financial reporting, and cost discipline factors that capital market regulators and investors highly value.
The group added that consistent delivery of this scale of performance improves the credibility of Nigerian corporates and boosts the country’s capital-raising ecosystem.
5. Opportunities for Bond Issuances and Infrastructure Financing
With its strengthened balance sheet, CEAR noted that NNPC is now better positioned to issue more competitive corporate bonds, green bonds, or infrastructure-linked notes moves that would further energize Nigeria’s fixed-income market and provide new investment products for pension funds, asset managers, and retail investors.
CEAR emphasized that NNPC’s N5.4 trillion profit should not be viewed solely as an operational milestone but as a strategic win for the Nigerian capital market.
The centre urged policymakers to continue the reform momentum to ensure that the company’s performance translates into broader market participation, deeper investor confidence, and expanded capital-raising opportunities across the economy.
Ogochukwu Onwaeze
