KEY POINTS
- Tinubu says NNPC will be reformed and listed on the capital market.
- NGX market value rose from N30tn in 2023 to N160tn, with N230tn projected by year-end.
- Government targets a $1trn economy, with officials confident it could be achieved before 2030.
President Bola Tinubu has announced plans to reform the Nigerian National Petroleum Company (NNPC) and eventually list the state-owned energy company on the capital market as part of efforts to deepen economic reforms and drive Nigeria towards a $1 trillion economy.
The President disclosed this at the State House in Abuja while receiving the board and management of the Nigerian Exchange Group (NGX), who briefed him on the significant growth recorded in Nigeria’s capital market since his administration assumed office in 2023.
Tinubu said the economic reforms implemented by his administration were beginning to produce positive results, pointing to improvements in key economic indicators and the performance of the stock market as evidence that Nigeria was moving towards a stronger and more sustainable economy.
The President stated that the proposed reform of NNPC would form part of the administration’s broader efforts to improve the efficiency and performance of key national assets.
“The NNPC will be reformed and listed in the capital market,” Tinubu said, while expressing confidence that Nigeria could achieve its ambitious target of building a $1 trillion economy.
According to him, Nigeria’s large population, human resources and entrepreneurial capacity provide a strong foundation for achieving the target.
Tinubu also praised members of his economic management team for their efforts in implementing reforms and navigating the country through difficult economic conditions.
He specifically acknowledged the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele; Minister of Budget and National Planning, Atiku Bagudu; Central Bank Governor, Yemi Cardoso; and Chairman of the National Revenue Service, Zacch Adedeji.
Stock market records major growth
The President’s announcement came against the backdrop of a major expansion in the Nigerian capital market.
According to the NGX management, the total value of listed equities has risen from approximately N30 trillion in 2023, when Tinubu assumed office, to about N160 trillion.
NGX Group Managing Director and Chief Executive Officer, Temi Popoola, said the market could reach N230 trillion by the end of 2026 if the current growth trajectory is sustained.
He also disclosed that the NGX All-Share Index had climbed from about 52,000 points to 244,000 points during the period.
Popoola said the growth had contributed to the creation of an estimated 500,000 to 900,000 millionaires, while noting that other African countries were increasingly studying Nigeria’s capital market reforms as a possible model.
The development, according to the NGX management, reflects growing investor confidence and the impact of economic policy changes introduced by the Tinubu administration.
Tinubu also stressed the importance of private-sector investment in driving economic growth, creating employment and expanding productive capacity.
He said the government must continue to create an environment that encourages businesses to invest in the economy and expand their operations.
The President recalled his support for billionaire businessman Aliko Dangote’s investment in the refining sector, noting that the development of private-sector capacity was essential to strengthening Nigeria’s economy.
Tinubu said the government would continue to support the private sector and economic management team in pursuing policies capable of generating sustainable growth.
Earlier, Finance Minister Taiwo Oyedele described Nigeria’s capital market as one of the strongest-performing markets globally and said it could become an important vehicle for wealth creation among Nigerians.
Oyedele said recent improvements in the market were the result of economic reforms implemented by the administration in collaboration with regulators, including the Securities and Exchange Commission.
He called for further innovations to attract more young Nigerians into the capital market, particularly by making the process of investing and listing simpler and more accessible.
The minister also urged the NGX and SEC to streamline listing procedures and reduce barriers that could discourage businesses and individuals from participating in the market.
Oyedele said the government was targeting a capital market valued at $1 trillion as part of its broader economic ambitions. Chairman of the NGX Group, Umaru Kwairanga, expressed confidence that Nigeria could achieve a $1 trillion economy before 2030.
Kwairanga said the country possessed the natural resources, human capital and economic potential required to meet the target, provided the reform programme was sustained.
He described the Nigerian capital market as historically underutilised and said recent developments demonstrated its capacity to play a greater role in mobilising investment and supporting national development.
He also commended the administration for creating conditions that have encouraged increased activity and confidence in the market.
