Economy
FG to List Nigeria Air on Stock Exchange, Targets IPO in 2019
By Dipo Olowookere
More details are beginning to emerge on the newly launched national carrier for the nation, Nigeria Air.
According to reports, federal government, which announced having five percent stake in the new company, Nigeria Air Limited, said it would run the firm for one year before listing the shares through an Initial Public Offering (IPO).
Nigeria Air is expected to finally begin operations by December 2018 after obtaining at least five airplanes of the 30 it plans to have.
It was earlier disclosed by the Minister of State for Aviation, Mr Hida Sirika, that about $300 million would be needed to operate the national carrier.
“At start up, government will own majority equity in Nigeria Air Limited Joint Venture company that would be very similar to Nigeria LNG Limited. Nigeria LNG Limited is a huge JV success that is private sector managed so will Nigeria Air Limited.
“After one year of operations, government will through an IPO divest her equity for purchase by Nigerians subject to approval of the Securities and Exchange Commission (SEC).
“Government will then retain only five percent equity. The rest of 95 percent equity of Nigeria Air Limited will then be owned by the strategic equity investor and the general public.
“Majority ownership must however remain with Nigerians so that the national carrier can benefit from BASA and other bilateral agreements which require local beneficial ownership as a condition precedent.
“Management of the national carrier will be concessional to the strategic equity investor with no step in rights and management control by government. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO,” the Ministry of Aviation was quoted as saying.
It was disclosed that
He said the project is not shrouded in any secrecy affirming “There is no secrecy. The entire process is guided by the infrastructure concession regulatory commission guidelines/regulations.
Speaking on the $300 million needed to fund Nigeria Air, it was clarified that, “Government is not funding the entire project. It’s just providing start-up capital in the form of an upfront grant/viability gap funding.
“Once the strategic equity investor is in place, they will be expected to build on the initial investment made.”
It was further stated that, “$8 million represents startup capital for offices etc required for takeoff. But $300 million is the entire airline cash flow funding requirements (aircraft, operations and working capital) for three years (2018, 2019 and 2020).
“This funding can be in the form of equity or debt. The financial model estimates cash flow requirements as follows 2018 ($55 million – $8 million is included here), 2019 ($100 million) and 2020 ($145 million).
“In order to ensure take-off of the airline in 2018, the government will provide $55 million upfront grant/viability gap funding to finance startup capital and pay commitment fees for aircraft to be leased for initial operations and deposit for new aircraft whose delivery will begin in 2021.”
Furthermore, it was emphasised that because it’s a PPP, it has three stages – the project development stage, procurement stage and implementation stage. The project development stage was just concluded with the approval of the Outline Business Case, which the ICRC issued a certificate of compliance.
“Once the process gets to the PPP procurement stage, there will be an RFQ, Information Memorandum and RFP bidding process which will be made public, competitive and transparent. It is only after the PPP procurement process that the strategic equity investor will be known.
“At that stage the JV partners will be government and the strategic equity partner. Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO.
“The government will retain only 5% equity, the list of shareholders then will be available to SEC and the Nigerian Stock Exchange. At that point Nigeria Air Ltd becomes a public company subject to SEC, NSE and relevant CAMA rules for public companies.
“All PPP procurement and ownership moves will be made public. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO.”
By Adedapo Adesanya
Dangote Refinery is targeting a $50 billion valuation ahead of the planned Initial Public Offering (IPO) in Nigeria later this year.
A report by Bloomberg, quoting sources, noted that the company wants to sell up to a 10 per cent stake, potentially raising around $5 billion in one of Nigeria’s biggest capital market deals.
The 650,000-barrels-per-day refinery has transformed Nigeria’s fuel supply chain by reducing dependence on imported petroleum products.
A senior executive at the Dangote Group confirmed to Bloomberg that the projected valuation reflects the company’s internal expectations but declined to comment further on the timing or structure of the transaction.
The planned listing comes as rising global crude oil prices and stronger domestic fuel consumption improve the refinery’s commercial outlook.
The Dangote Group has also appointed a consortium of three financial advisers to manage the offering. Stanbic IBTC Capital, operating under the Standard Bank umbrella, will handle the international book-building process and lead engagement with foreign portfolio investors.
Vetiva Capital Management, which has advised on previous Dangote listings, will manage retail investor distribution within Nigeria, while FirstCap will focus on placements with Nigerian institutional investors, particularly pension funds, according to the report
Located in the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
Since beginning large-scale production of petrol, diesel, and aviation fuel, the refinery has reshaped Nigeria’s fuel supply chain, reducing reliance on imported petroleum products and increasing local refining capacity in Africa’s biggest oil producer.
Last year, Mr Aliko Dangote, the majority stakeholder at the refinery, indicated that Nigerian investors would soon have an opportunity to buy shares directly in the refinery business, signalling a broader push to attract domestic participation in the energy sector.
The IPO is anchored by an unprecedented dividend structure that allows investors to purchase shares in Nigerian naira but receive returns in US Dollars, backed by an estimated $6.4 billion in annual petrochemical export revenues.
The prospectus has already been submitted for regulatory review, and a subscription window is expected to open by August 2026.
It will also be the first time that the Refinery will become available for public ownership. The refinery, located in the Lekki Free Trade Zone near Lagos, was commissioned in May 2023 after nearly a decade of construction and an investment of approximately $20 billion.
By February 2026, the facility had reached its full processing capacity of 650,000 barrels of crude oil per day, making it the world’s largest single-train refinery and Africa’s biggest refining complex.
By Adedapo Adesanya
Nigeria is currently in talks with the World Bank for a fresh $1.25 billion loan in June 2026.
According to a document titled Nigeria Actions for Investment and Jobs Acceleration, the proposed loan will finance ongoing economic reforms, job creation, and competitiveness.
Already, talks are at the critical stage for the loan facility expected to be presented for approval on June 26, 2026. The loan has progressed beyond the initial concept and appraisal phases.
If approved, it will come off as the second-largest loan facility after the approval of the ‘$1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing’ approved by the Bank in June 2024.
The borrower is listed as the Federal Republic of Nigeria, while the Federal Ministry of Finance will serve as the implementing agency.
This comes as the country’s debt profile remains high. As of December 31, 2025, external debt stood at $51.86 billion, while Nigeria’s total public debt in dollars is currently at $110.97 billion
The loan is now at the decision-meeting stage of the World Bank’s project cycle, a point at which the lender’s management reviews the final appraisal package and determines whether the project should proceed to the Board of Executive Directors for approval.
This stage comes after appraisal and negotiations have been concluded, with key policy actions, financing terms, and reform commitments already agreed in principle between the borrower and the World Bank team.
In the World Bank process, the decision meeting represents a near-final internal clearance, after which the project is prepared for formal Board consideration, where final approval is granted.
The World Bank document stated, “The review did authorise the team to appraise and negotiate,” meaning the project has successfully passed earlier internal checks and is advancing toward final approval.
According to the global lender, the loan is designed “to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.”
Under President Bola Tinubu, the World Bank has approved about $9.35 billion in loans and credits for Nigeria between June 2023 and May 2026.
These approvals span multiple sectors, including power, education, healthcare, agriculture, social protection, renewable energy, MSME financing, and economic reform support.
Key packages include the $2.25 billion RESET and ARMOR reform financing in June 2024, $1.57 billion for HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience programmes in March 2025.
By Adedapo Adesanya
The duo of FrieslandCampina Wamco Nigeria Plc and the Central Securities Clearing System (CSCS) Plc boosted the NASD Over-the-Counter (OTC) Securities Exchange by 1.05 per cent on Monday, May 11.
FrieslandCampina Wamco added N13.07 to sell N146.00 per share versus the previous price of N132.98 per share, and CSCS Plc rose by 10 Kobo to close at N76.00 per unit compared with last Friday’s N75.90 per unit.
As a result, the market capitalisation increased by N26.20 billion to N2.514 trillion from N2.488 trillion, and the NASD Unlisted Security Index (NSI) went up by 48.80 points to 4,202.57 points from 4,158.77 points.
The volume of securities bought and sold by market participants decreased by 55.2 per cent yesterday to 236,921 units from 528,891 units, the value of securities slid by 51.5 per cent to N16.5 million from N34.0 million, and the number of deals contracted by 20 per cent to 20 deals from 25 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by CSCS Plc with 60.5 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.8 million units transacted for N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn