NGX wants Nigerians to own stakes in Indorama, NLNG through listings

The Chief Executive Officer of Nigerian Exchange Limited (NGX), Temi Popoola, has called on the Federal Government to leverage the capital market as a tool for economic transformation by listing stakes in strategic national assets like Indorama Eleme Petrochemicals Limited on the Nigerian Exchange.

Popoola made the appeal during a meeting with President Bola Ahmed Tinubu, arguing that public listings of major state-linked enterprises could deepen Nigeria’s capital market, broaden wealth creation opportunities, and unlock value for the economy.

According to him, previous government-backed initiatives played a significant role in the development of the Nigerian capital market and should serve as a model for future reforms.

What they are saying

Popoola said the government could boost market capitalization and investor participation by listing stakes in major enterprises such as Nigeria LNG Limited (NLNG), Indorama Eleme Petrochemicals Limited, and selected assets within the Nigerian National Petroleum Company (NNPC) Limited portfolio.

• “You would remember, sir, in the 70s, we had the indigenisation programme. Many of your Nestlé’s and Unilever’s and these companies only came to the markets as a result.
• “MTN, the big telecommunications company that we talk about today, which is a major part of the exchange, also only came as a result of government efforts.”

He added that several of the identified companies already have provisions that could support future listings, making them strong candidates for public offerings.

• “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 argued that listing strategic assets would not only expand investment opportunities for Nigerians but also provide a new avenue for mobilizing long-term capital to support economic growth.

The NGX chief noted that landmark listings in the past, including MTN Nigeria, helped broaden market participation and significantly increased the depth and value of the Nigerian capital market.

He said similar initiatives involving large industrial and energy assets could replicate those gains and attract both domestic and international investors.

Get up to speed

Indorama Eleme Petrochemicals was originally established in 1990 as Eleme Petrochemicals Company Limited (EPCL), a wholly owned subsidiary of the Nigerian National Petroleum Corporation (NNPC).

• The company was privatized in 2006 after Indorama emerged as the core investor, acquiring the business for $300 million under the Federal Government’s privatization programme.
• Following significant investments and expansion, the company was renamed Indorama Eleme Petrochemicals Limited in 2012 and has since developed into one of Africa’s largest petrochemical and fertilizer hubs.
• Under Nigeria’s Public Enterprises (Privatisation and Commercialisation) Act, shares of 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 enthusiasts believe the listing of government stakes in strategic enterprises could deepen liquidity, improve corporate governance standards, and give Nigerians a direct opportunity to participate in the growth of key national assets.

What you should know

The proposal comes amid renewed efforts by the NGX to expand the size and depth of the Nigerian capital market.

Recently, Popoola also 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.

According to him, while Nigeria should remain open to global capital markets, local investors should also be given the opportunity to share in the value created by companies that generate significant revenues within the country.

The NGX has continued to advocate for policies that would attract more listings and strengthen the role of the capital market in supporting Nigeria’s long-term economic development.