NGX urges Tinubu to list government stakes in Indorama, NLNG
The Chief Executive Officer of Nigerian Exchange Limited (NGX), Temi Popoola, has called on the Federal Government to leverage the capital market by listing its stakes in strategic national assets such as Indorama Eleme Petrochemicals Limited and Nigeria LNG Limited (NLNG) on the Nigerian Exchange.
Popoola made the call during a meeting with President Bola Ahmed Tinubu, arguing that listing stakes in major state-linked enterprises would deepen Nigeria’s capital market, expand investment opportunities and unlock additional value for the economy.
He said previous government-backed initiatives had played a significant role in developing Nigeria’s capital market and could provide a model for future reforms.
What Popoola said
According to Popoola, the government could significantly increase market capitalisation and investor participation by listing stakes in major enterprises, including NLNG, Indorama Eleme Petrochemicals and selected assets in the portfolio of the Nigerian National Petroleum Company (NNPC) Limited.
He recalled the impact of past government policies on the development of Nigeria’s capital market, citing the indigenisation programme of the 1970s and the eventual listing of MTN Nigeria as examples.
“There are a few companies that we have identified, companies like Indorama Eleme Petrochemicals Limited and NLNG. Some of them already have listing clauses, while others may require government support to bring them to market. We would like your support in this regard,” Popoola said.
He added that some of the identified companies already have provisions that could facilitate future listings, making them potential candidates for public offerings.
Popoola said listing strategic assets would not only give Nigerians greater access to investment opportunities but also create an avenue for mobilising long-term capital to support economic growth.
He noted that major listings in the past, particularly MTN Nigeria, had helped broaden participation and significantly increased the depth and value of the Nigerian capital market.
According to him, similar listings involving large industrial and energy assets could attract both domestic and international investors while strengthening the market.
Indorama’s history
Indorama Eleme Petrochemicals Limited was established in 1990 as Eleme Petrochemicals Company Limited (EPCL), a wholly owned subsidiary of the Nigerian National Petroleum Corporation (NNPC).
The company was privatised in 2006 after Indorama emerged as the core investor, acquiring the business for $300 million under the Federal Government’s privatisation programme.
Following significant investments and expansion, the company was renamed Indorama Eleme Petrochemicals Limited in 2012. It has since grown into one of Africa’s major petrochemical and fertiliser hubs.
Under Nigeria’s Public Enterprises (Privatisation and Commercialisation) Act, shares in public enterprises may be offered to investors through public issues or private placements. The law also allows the National Council on Privatisation to approve alternative methods of sale where appropriate.
Market stakeholders believe listing government stakes in strategic enterprises could improve liquidity, strengthen corporate governance and give Nigerians a direct opportunity to participate in the growth of key national assets.
NGX pushes for more listings
Popoola’s proposal comes amid renewed efforts by the NGX to expand the size and depth of Nigeria’s capital market.
He recently urged the Federal Government to encourage major fintech companies operating in Nigeria, including OPay and PalmPay, to pursue local listings alongside any planned foreign stock market debuts.
Popoola has argued that while Nigeria should remain open to international capital markets, domestic investors should also have the opportunity to benefit from the value created by companies generating significant revenues in the country.
The NGX continues to advocate policies aimed at attracting more listings and strengthening the role of the capital market in supporting Nigeria’s long-term economic development.
