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The Nigerian Exchange Limited (NGX) is calling on the Federal Government to use the capital market to broaden public ownership of major national assets, including Indorama Eleme Petrochemicals Limited and Nigeria LNG Limited (NLNG).
The proposal was made by NGX Chief Executive Officer Temi Popoola during a meeting with President Bola Ahmed Tinubu, where he argued that listing stakes in strategically important companies could deepen Nigeria’s capital market, expand investment opportunities and unlock additional value for the economy.
NGX Identifies Major Companies for Listings
Popoola said the government could increase market capitalisation and attract more investors by making stakes in companies such as Indorama Eleme Petrochemicals, NLNG and selected assets within the Nigerian National Petroleum Company (NNPC) Limited portfolio available through the capital market.
He noted that some of the identified companies already have provisions that could facilitate future listings, while others may require government intervention before they can be brought to the market.
According to Popoola, the experience of previous government-led initiatives demonstrates how public listings can transform the capital market and create broader opportunities for Nigerians to participate in major businesses.
MTN Listing Cited as a Model
The NGX chief pointed to the historical indigenisation programme as an example of how government policy helped bring major companies into Nigeria’s capital market.
He also cited the listing of MTN Nigeria as an important example of how government-supported market participation can increase the depth and size of the exchange.
Popoola argued that similar action involving large industrial, energy and other strategic businesses could attract domestic and foreign investment while giving Nigerians a direct stake in companies operating within the economy.
Indorama’s Journey from State Ownership
Indorama Eleme Petrochemicals has its origins in Eleme Petrochemicals Company Limited (EPCL), which was established in 1990 as a wholly owned subsidiary of NNPC.
The company was subsequently privatised in 2006, when Indorama emerged as the core investor after acquiring the business for $300 million under the Federal Government’s privatisation programme.
Following further investment and expansion, the company was renamed Indorama Eleme Petrochemicals Limited in 2012 and has developed into one of Africa’s major petrochemical and fertiliser hubs.
Nigeria’s Public Enterprises (Privatisation and Commercialisation) Act allows shares in public enterprises to be offered to investors through public issues or private placements. The legislation also provides for alternative disposal methods approved by the National Council on Privatisation.
Listings Could Deepen Market Participation
The proposed listings could provide Nigerian investors with opportunities to own stakes in some of the country’s most strategically significant enterprises.
Market participants believe bringing large industrial and energy assets to the NGX could improve market liquidity, strengthen corporate governance and expand the number of investment opportunities available to domestic investors.
For the government, public offerings could also provide an avenue for mobilising long-term capital while reducing reliance on conventional sources of financing.
Push Extends to Fintech Companies
The NGX’s latest proposal forms part of a broader campaign by the exchange to increase the number and diversity of companies listed on the Nigerian capital market.
Popoola recently called on the Federal Government to encourage major fintech companies operating in Nigeria, including OPay and PalmPay, to consider local listings alongside any plans to access foreign stock markets.
The argument is that companies generating substantial revenues from Nigerian consumers should also provide local investors with an opportunity to participate in the value they create.
Capital Market Positioned as Economic Growth Tool
The renewed push for strategic listings comes as the NGX seeks to translate growing investor activity into broader economic development.
For Popoola, bringing major enterprises such as Indorama and NLNG to the exchange would go beyond increasing the number of listed companies. It would create new channels for wealth creation, strengthen the capital market and allow Nigerians to participate directly in the growth of businesses with significant economic importance.
The proposal now requires government support and the necessary regulatory and corporate processes before any of the identified assets can proceed to a public listing.
