The Nigerian National Petroleum Company Limited (NNPC Ltd) is in the final stages of listing on the capital market as it prepares for an Initial Public Offering (IPO) in line with the provisions of the Petroleum Industry Act (PIA) 2021.

The move marks a significant shift in Nigeria’s oil and gas industry, positioning NNPC Ltd among global energy giants that have successfully transitioned from state-owned enterprises to publicly traded companies.

Olugbenga Oluwaniyi, NNPC Ltd’s Chief Finance, and Investor Relations Officer, disclosed this during a consultative meeting with prospective partners at the NNPC Towers in Abuja on Thursday. He revealed that the company had commenced an “IPO Beauty Parade,” a strategic engagement with potential partners aimed at ensuring compliance with capital market regulations ahead of its planned listing.

“The Nigerian National Petroleum Company Limited (NNPC Ltd) is at the final stage of getting listed in the capital market, in keeping with the provisions of the Petroleum Industry Act (PIA) 2021,” Oluwaniyi stated.

An IPO allows institutional investors to purchase shares in a company for the first time, officially introducing it to the stock market. This development signals a major transition for NNPC Ltd, which has operated as a government-owned entity for decades.

Roadmap for NNPC Ltd’s Public Listing

The IPO Beauty Parade, according to Oluwaniyi, is focused on selecting key partners to guide NNPC Ltd through the capital market process. The company is looking for expert advisors in three critical areas: Investor Relations, IPO Readiness, and Investment Banking Partners.

The selection of partners will be based on the strength of their proposals and their ability to provide comprehensive support in these areas. The goal is to determine the best offers in terms of project partnership, ensuring a smooth transition to public listing while maintaining compliance with capital market regulations.

The transformation of NNPC Ltd is in accordance with the PIA 2021, which mandates the national oil company to operate as a fully commercial enterprise. The PIA also requires compliance with the Company and Allied Matters Act (CAMA) 1990, reinforcing transparency, efficiency, and profitability in NNPC Ltd’s operations.

What This Means for Nigeria’s Oil and Gas Industry

NNPC Ltd’s move to become a publicly traded company represents a major reform in Nigeria’s oil and gas sector. The company aims to enhance corporate governance, attract private sector investment, and improve operational efficiency by opening up to investors.

A successful IPO would increase the company’s access to capital, allowing it to fund critical energy projects, expand exploration activities, and improve refinery operations. Additionally, the transition could boost investor confidence in Nigeria’s oil sector, demonstrating the government’s commitment to fostering a competitive and transparent petroleum industry.

NNPC Ltd’s planned IPO follows a global trend in which state-owned oil companies transition into publicly traded entities to attract investment and improve financial accountability. Several national oil firms have successfully gone public and achieved global success.

Saudi Aramco, the world’s largest oil company, raised $25.6 billion in its 2019 IPO, making it the largest in history. China National Offshore Oil Corporation (CNOOC) and Sinopec, both Chinese oil and gas giants, are also publicly listed. Russia’s Gazprom, a leading natural gas company, operates as a publicly traded entity, while Petrobras, Brazil’s state-owned oil company, has been a publicly listed firm for years. The National Iranian Oil Company (NIOC) has also taken steps towards commercial operations.

In March 2024, the Group Chief Executive Officer (GCEO) of NNPC Ltd, Mele Kyari, hinted that the company’s anticipated public listing would soon commence, in line with the PIA. He emphasized that NNPC Ltd was undergoing a transformation process that would see it become a fully commercial entity.

Kyari explained that previously, NNPC operated as a government-owned corporation, but it lacked the financial independence and commercial flexibility to compete in global markets. With the reform triggered by the PIA, the company has now transitioned into a limited liability company that functions as a profit-making business.

“As a corporation owned by the government, NNPC was not a commercial company. But we needed to move away from that structure. The transformation process has now made NNPC Ltd a full limited liability company that is commercially driven,” Kyari stated.

He further noted that at maturity, some of NNPC Ltd’s shares would be divested, allowing broader participation by private investors.

The IPO process is expected to generate significant interest from both local and international investors. However, the listing comes with several challenges, including market volatility, regulatory compliance, and corporate governance expectations. The global oil market remains unpredictable, and fluctuations in crude oil prices could impact investor sentiment. Additionally, the transition from a government-owned enterprise to a publicly traded company will require strict compliance with Nigeria’s capital market regulations. Investors will also closely monitor how NNPC Ltd improves its governance framework, ensuring that transparency and accountability are upheld in its operations.

However, the listing is expected to unlock billions of dollars in investment, enabling the company to expand production capacity, modernize refineries, and invest in renewable energy projects.

The ongoing IPO Beauty Parade is seen as a crucial step in selecting the right partners to guide NNPC Ltd through this transformation. If successful, the public listing of NNPC Ltd could mark a new era in Nigeria’s oil and gas sector, paving the way for increased private sector participation, improved efficiency, and long-term profitability.

Zenith Bank has once again surpassed expectations, reporting a record-breaking profit after tax (PAT) of N1.033 trillion for the 2024 financial year, a significant increase of 52.59% from the N677.98 billion posted in 2023.

This exceptional performance was driven by a combination of strong interest income, impressive trading gains, and growing revenue from non-interest sources such as electronic banking fees and account maintenance charges.

The bank’s gross earnings reached an all-time high of N3.971 trillion, an increase of 86.28% compared to N2.39 trillion in the previous year. Interest income was a major contributor, rising to N2.721 trillion, while trading gains surged to N1.1 trillion, reflecting the bank’s strategic positioning in Nigeria’s high-interest-rate environment. As a result of these earnings, Zenith Bank proposed a final dividend of N4.00 per share, bringing the total dividend payout for the 2024 financial year to N5.00 per share, up from N4.00 per share in 2023.

How Zenith Bank Achieved Record Profitability

Zenith Bank’s remarkable financial performance in 2024 was largely fueled by the high-interest-rate environment in Nigeria, which significantly boosted earnings from loans and government securities. The Central Bank of Nigeria’s tight monetary policy, aimed at curbing inflation, created a favorable climate for banks to generate substantial interest income.

Interest income from loans and advances to customers rose sharply by 126% year-on-year to N1.52 trillion, reflecting increased lending activity. The bank also earned N579.92 billion from investments in treasury bills, representing a 224% increase compared to 2023. Overall, net interest income surged by 134.85% to N1.729 trillion, highlighting the bank’s ability to optimize its interest-earning assets.

However, the rising cost of funds was also evident, as interest expenses increased by 142.96% to N992.47 billion, underlining the impact of tighter monetary conditions. Despite this, the bank’s net interest income after impairment charges still grew by a remarkable 227.68%, reaching N1.070 trillion.

Trading and Non-Interest Revenue Hits New Highs

Beyond interest income, Zenith Bank recorded a substantial increase in non-interest revenue, largely driven by trading activities and digital banking fees. The bank’s trading business generated a record-breaking N1.1 trillion in earnings, nearly doubling from N566.9 billion in 2023.

Fee and commission income also saw significant growth, rising to N206.87 billion, an 89.25% increase from the previous year. Gross earnings from commissions and fees amounted to N356.3 billion, up from N177.5 billion in 2023. This growth was primarily fueled by revenues from electronic banking transactions, account maintenance fees, and foreign withdrawal charges. Specifically, the bank earned approximately N80 billion from electronic-related fees, N73 billion from account maintenance charges, and N79 billion from foreign withdrawal transactions.

However, the bank faced rising operating costs due to Nigeria’s inflationary environment. The cost-to-income ratio increased to 30% in 2024, compared to 27% in the previous year. The bank’s personnel expenses grew by 64.5%, while general operating expenses doubled, rising by 100% year-on-year.

Zenith’s Expanding Balance Sheet and Asset Growth

Zenith Bank’s total assets grew significantly, reaching N29.96 trillion, an increase of 47.08% from N20.37 trillion in 2023. This further cements the bank’s position as one of Nigeria’s largest financial institutions, ranking alongside Access Holdings and the United Bank for Africa (UBA).

Customer deposits surged to N21.959 trillion, indicating a 44.78% increase from the previous year. This growth in deposits underscores the bank’s strong brand reputation and its ability to attract customer funds despite economic headwinds. The bank also expanded its lending portfolio, with total loans and advances to customers increasing by 51.99% to N9.965 trillion.

Shareholders’ equity also experienced substantial growth, rising by 73.42% to N4.029 trillion. This included retained earnings of N2.016 trillion, which grew by 70.89% year-on-year, and share capital and share premium, which increased by 127.02% to N614.648 billion.

Capital Raising and Compliance with CBN’s Recapitalization Policy

Following the Central Bank of Nigeria’s directive for banks to increase their minimum capital base, Zenith Bank initiated a capital-raising exercise to meet the new requirements. The bank successfully completed an N343 billion hybrid offer through a combination of rights and public offers. This capital raise was significantly oversubscribed, receiving 160% more demand than initially expected. As a result, Zenith Bank’s share capital increased to N614.648 billion.

However, it is important to note that under current regulatory guidelines, retained earnings and profits cannot be counted as part of a bank’s share capital for recapitalization purposes. This means that while Zenith Bank’s profitability remains strong, it may need to explore additional capital-raising initiatives if required by the CBN’s policies.

Elon Musk has acknowledged that Tesla will not escape the effects of President Donald Trump’s newly imposed 25% tariff on imported cars and auto parts, even though the company builds all its vehicles in the United States.

Musk, who also serves as a senior advisor to Trump, noted that the tariffs would increase the cost of Tesla cars due to its reliance on imported components, particularly from Mexico.

“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk posted on his X social media platform late Wednesday.

Official U.S. data confirms that between 20% and 25% of Tesla’s total vehicle value originates from Mexico, meaning the automaker will feel the sting of Trump’s protectionist trade policies. The auto industry as a whole, which is heavily dependent on global supply chains, has been sent into turmoil by the tariffs, as automakers scramble to determine how the added costs will affect their businesses and consumers.

The tariffs have triggered widespread concerns among car manufacturers, particularly in Europe, where German automakers and their suppliers have called the move a “fatal signal” for economic growth. Even companies that manufacture cars in the U.S. rely heavily on imported components, making them vulnerable to cost spikes.

BMW, for example, has its largest plant worldwide in South Carolina, yet still depends on a complex global supply chain to produce its vehicles. The new tariffs threaten to disrupt production and increase costs, which could ultimately be passed on to consumers.

Transportation industry expert Art Wheaton of Cornell University warned that the tariffs would have severe financial consequences.

“The 25% tariff on autos and parts will create immediate price increases and wreak havoc on supply chains,” Wheaton said, estimating that consumers could see prices rise by as much as $10,000 to $20,000 per vehicle.

Analysts Believe Tesla is Better Of Than Others

Despite Musk’s admission, analysts believe Tesla is in a much stronger position than its traditional American competitors. Compared to Ford, General Motors, Chevrolet, and Jeep parent Stellantis, Tesla will suffer the least from the tariffs, according to Deutsche Bank analyst Edison Yu.

Yu, in a Thursday note to clients, wrote that Tesla is “best off” among U.S. automakers when it comes to the fallout from Trump’s new trade directives. Unlike its Michigan-based counterparts, Tesla assembles all of its vehicles in the United States, which shields it from the worst of the import levies.

By contrast, General Motors is considered the “worst positioned” U.S. carmaker under the new tariff rules. JPMorgan analyst Ryan Brinkman estimates that General Motors, which sources around 40% of its cars from Canada and Mexico, could suffer a $14 billion hit to earnings from the tariffs.

Tesla is “NOT unscathed,” Musk emphasized in his X post, acknowledging that the tariffs would still have a significant effect.

However, Deutsche Bank analysts noted that the company’s primary imported auto part facing the tariffs is wire harnesses from Mexico. To offset the increased costs, Tesla would only need to raise vehicle prices by about 1.8%—a far smaller adjustment than the 5.8% or more that Ford, General Motors, and Stellantis will likely have to make.

Tesla Stock Outperforms as Rivals Struggle

Tesla’s relative insulation from the tariffs was reflected in the stock market’s reaction. In Thursday’s New York trading session, Tesla shares rose by 4%, while Ford saw a 4% decline, General Motors plunged 9%, and Stellantis fell 2%.

The pain extended beyond U.S. automakers, as European car companies with significant U.S. operations also took a hit. Shares of Ferrari and Mercedes each dropped at least 2% amid investor concerns that the tariffs could disrupt their business models.

Is Tesla The Clear Winner?

Some analysts believe Tesla is emerging as the biggest beneficiary of Trump’s trade moves. In a research note on Thursday, Bernstein analysts led by Daniel Roeska framed the situation in stark terms.

“Tesla wins, Detroit bleeds,” Roeska wrote. “Tesla is the clear structural winner… For everyone else, this is a margin reset and real drag on near-term earnings power.”

While Tesla will still have to navigate the challenges posed by the tariffs, its domestic production advantage and relatively low reliance on foreign-sourced parts make it far more resilient than its legacy rivals. As Ford, GM, and Stellantis scramble to adapt, Tesla appears to be in a stronger position to weather the storm—and potentially emerge even stronger in the U.S. auto market.

The Nigerian government has announced plans to halt the importation of solar panels in a bid to promote local manufacturing and drive the country’s transition to renewable energy.

The decision, announced by the Minister of Innovation, Science, and Technology, Uche Nnaji, aligns with a presidential directive aimed at prioritizing local content in science, engineering, and technology.

Speaking at the launch of the NEV T6 electric buses in Abuja, Nnaji emphasized Nigeria’s capacity to produce solar panels domestically, stating that the National Agency for Science and Engineering Infrastructure (NASENI) has already begun local production. He projected that as domestic manufacturing scales up, more Nigerian households and institutions would transition to off-grid solar power solutions, reducing reliance on the national grid.

“We have lithium in abundance here in Nigeria, so Mr. President is already taking action. We are adding value to our raw materials. The lithium we have here will be processed and used as batteries for these vehicles,” Nnaji said, highlighting the government’s broader clean energy ambitions.

Beyond solar panel production, Nnaji noted that the government is developing mini-grid solutions to provide stable electricity for critical sectors, including hospitals, schools, and businesses. He stated that budget allocations have already been made for mini-grids, with visible implementation expected within months.

“In less than three or four months, you will start seeing our hospitals and institutions being powered by solar,” he assured.

Doubts Over NASENI’s Capacity to Meet Local Demand

However, the move to ban solar panel imports has drawn criticism, with many experts questioning NASENI’s capacity to meet the demand that an import restriction would create. Industry stakeholders argue that NASENI’s current production output falls far below what is required to sustain Nigeria’s growing renewable energy market. Concerns have also been raised about the affordability and quality of locally produced panels compared to imported alternatives.

The decision to halt imports comes at a time when Nigeria is witnessing an uptick in solar-powered electricity adoption. The country recently signed a landmark 2,600-megawatt (MW) solar module supply agreement with LONGi Solar France SARL. The modules will be used to power Nigeria’s Green Hydrogen Hub Project in the Liberty Oil & Gas Free Trade Zone in Akwa Ibom State.

According to Nnaji, who facilitated the deal, the project represents one of the largest solar procurement agreements in sub-Saharan Africa and is expected to transform Nigeria into a regional hub for clean energy production. The country aims to drive industrial growth, expand hydrogen exports, and promote clean mobility solutions by leveraging its abundant solar resources.

The project is expected to create over 20,000 direct jobs across engineering, logistics, research and development, and maintenance. It will also support industrial-scale green hydrogen production, which could fuel local industries, power exports, and enable cleaner transport, particularly in the marine and heavy-duty transport sectors.

The LONGi deal marks a major step forward in Nigeria’s renewable energy ambitions. The company, recognized as a global leader in solar technology, holds the world record for solar photovoltaic (PV) efficiency, with its silicon-perovskite tandem cells achieving a 34.6% conversion rate.

Dr. Mustapha Abdullahi, Director General and CEO of the Energy Commission of Nigeria (ECN), emphasized that deploying LONGi’s high-efficiency modules in Nigeria’s climate would yield more energy per square meter and deliver faster returns on investment.

“This is precision technology meeting raw African potential—the synergy is transformative,” Abdullahi stated.

The government’s push for solar energy has been evident in recent years, with several other solar deals secured to tackle the country’s erratic power supply. Nigeria has been ramping up investments in off-grid and mini-grid solutions to bridge the electricity gap, particularly in rural areas where access to power remains limited.

However, concerns persist over whether local manufacturing can scale up quickly enough to meet the demands of a rapidly growing renewable energy sector. Industry experts warn that a sudden ban on imported solar panels could disrupt supply chains, increase costs, and slow down Nigeria’s transition to clean energy.

While the government remains committed to fostering local production, analysts note the success of the initiative will depend on the ability of Nigerian manufacturers to match the quality, affordability, and efficiency of imported solar technology.