See more as government plans to allow Nigerians buy shares of NNPC, other govt firms

• The Nigerian government will soon allow citizens to purchase shares in the NNPCL and other government enterprises
• If actualised, this will help promote wider public ownership of national assets, thereby contributing to national development
• There are currently 151 private companies, ranging from oil and gas to financial services and consumer goods, listed on the NGX

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerians will soon be able to buy shares in the Nigerian National Petroleum Company Limited (NNPCL) and several other state-owned enterprises (SOEs).

This initiative aims to enhance public participation in the economy and improve transparency in state operations.

Government enterprise to list on NGX Photo credit: George Osodi
Source: Getty Images

The Nation reports that the Securities and Exchange Commission (SEC) said that all of these firms had been contacted regarding the listing process on the Nigerian stock market.

Some of the enterprises include:

• Nigerian National Petroleum Corporation (NNPC)
• Ajaokuta Steel Company Limited
• Bank of Agriculture (BoA)
• Galaxy Backbone Plc
• Nigeria Bulk Electricity Trading Plc (NBET)
• Nigeria Commodity Exchange (NCE)
• Nigerian Liquefied Natural Gas Corporation (NLNG)
• Nigerian Mining Corporation

For the companies to be eligible for listing on the Nigerian Exchange (NGX), these SOEs must meet specific criteria, including a minimum market capitalisation of N500 million and pre-tax profits of at least N300 million.

SEC speaks on the plans to list government companies

Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), said the development is significant for Nigeria’s economy.

He noted that it would lead to a more inclusive and democratised business environment.

Agama also reassured that listing will not diminish the control of SOEs but will empower them through enhanced governance and stakeholder engagement.

Agama highlighted that listing SOEs on the NGX would facilitate wealth distribution and democratise their operations, allowing more Nigerians to hold ownership stakes.

NGX unveils electronic public offering platform

In related news, Legit.ng reported that the NGX and the SEC unveiled a digital platform for purchasing shares.

NGX chief executive officer Temi Popoola said the platform is embedded with capabilities to facilitate transactions.

The NGX also recently launched a shortcode or USSD to allow Nigerians to own quoted company shares.

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Source: Legit.ng