NNPC listing: Global capital to exceed $60bn goal — Expert

A stockbroker, Mr David Adonri, has stated that the anticipated listing of the Nigerian National Petroleum Company (NNPC Ltd.) on the Nigerian Exchange Ltd. (NGX) will unlock global capital, helping the company surpass President Tinubu’s $60 billion investment goal by 2030.

Reports note that President Bola Tinubu, following the reconstitution of the company’s leadership, tasked NNPC with increasing its investment base to $30 billion by 2027 and $60 billion by 2030.

In an interview with journalists on Wednesday, Adonri explained that the listing would grant NNPC access to global investment capital.

The Vice President of Highcap Securities added that this move would not only enable NNPC to meet its goal but would also stimulate the company’s growth and expansion.

Adonri described the $60 billion target as “conservative,” considering the substantial capital that could be accessed from the global market.

He predicted that NNPC could potentially raise three to five times its target if it offers a compelling value proposition to investors worldwide.

“The key benefit of investing in the capital market is the access it provides to investment capital from across the globe, thanks to the broad reach of capital markets.

“Currently, any investor with a mobile device can invest in Nigerian securities, particularly through public offerings, due to the technology deployed by the Nigerian Exchange.

“Therefore, the listing will boost NNPC’s ability to raise money from the global investment community, enabling it to meet its growth and expansion goals.

“The target set for them seems quite conservative because the amount of capital that can be accessed from the global capital market is vast. If NNPC presents a strong value proposition to global investors, they could potentially raise three, four, or even five times the target they’ve been given.

“Thus, the decision to list is a significant catalyst for NNPC to achieve its capital-raising objectives,” he said.