Onome Amuge
The Nigerian National Petroleum Company Limited (NNPC Ltd) has formally opened the door for private investment into its oil and gas portfolio, issuing a call for bids on several assets in what industry insiders describe as a critical step in the company’s efforts to modernise operations, attract capital, and increase output.
According to a Reuters report quoting an NNPC invitation document, interested firms must register online by January 10, 2026. Following pre-screening, qualified investors will gain access to a secure virtual data room, marking the start of a structured, multi-stage process that includes technical and financial evaluation, negotiations, and regulatory approvals.
The initiative forms part of a drive by the state-owned oil producer to attract investment, repair ageing infrastructure, and position itself for a potential initial public offering (IPO). Sources familiar with the matter told Bloomberg that NNPC is in advanced discussions to secure $2 billion in financing from Nexus Alliance, a Nigerian-headquartered firm specialising in pipeline infrastructure, asset performance management, and consulting solutions for energy and industrial sectors. The funding will be deployed to repair and upgrade the country’s 5,000-kilometre oil and gas pipeline network, much of which has suffered chronic underinvestment, vandalism, and operational inefficiencies.
Nigeria’s pipeline system, once the backbone of its oil export and domestic gas supply network, has struggled for years with inoperability, frequent shutdowns, and sabotage. Major lines transporting crude to export terminals and natural gas to power plants and LNG facilities often operate below capacity, directly affecting production volumes, export earnings, and domestic energy availability. Although security has improved in recent years, ageing infrastructure and persistent threats continue to make pipelines vulnerable to intermittent closures and revenue loss.
The new funding is expected early next year, sources said, and will target key pipelines for repair, leak reduction, and modernisation.
The planned stake sales and financing come amid ongoing efforts to increase crude production to 1.8 million barrels per day and boost natural gas output. NNPC has set a target to attract $30 billion in investments by 2027, with roughly half expected in 2026. These measures align with long-standing plans to improve transparency and accountability, which are considered prerequisites for a potential IPO.
However, the government’s divestment plans have drawn sharp criticism from Nigeria’s key oil sector unions. In September 2025, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) warned that reducing government stakes in joint venture (JV) assets by 30–35 per cent could destabilise the industry, threaten workers’ welfare, and undermine economic stability. The federal government currently holds between 55 and 60 per cent of JV assets through NNPC.
Despite labour opposition, NNPC’s bid document makes clear that prequalification will be rigorous, evaluating both technical expertise and financial capacity. Analysts see this as a signal that the company is prioritising investors with the capability to ensure operational improvements rather than simply securing capital.
NNPC has also shown operational resilience in recent months. Following a pipeline explosion on December 10, 2025, the company successfully restored the Escravos–Lagos Pipeline System (ELPS) in Warri, Delta State. A statement by NNPC spokesman Andy Odeh emphasised the speed and coordination of the emergency response: “The pipeline is fully operational, reaffirming our resilience and commitment to energy security. This achievement was made possible through the unwavering support of our host communities, the guidance of regulators, the vigilance of security agencies, and the dedication of our partners and staff.”
Meanwhile, the presidency confirmed on social media that President Bola Tinubu has approved the write-off of $1.42 billion and N5.57 trillion in NNPC’s legacy debts to the federation account. The cancellation covers obligations up to December 31, 2024, including production sharing contracts, domestic supply obligations, repayment agreements, modified carry arrangements, and joint venture royalty receivables. Corresponding accounting adjustments have reportedly been made in the Federation Account.
However, a long-standing dispute over an alleged under-remittance of $42.37 billion from 2011 to 2017 remains unresolved. NNPC has rejected these claims, insisting that all revenues were properly accounted for.
Investment analysts argue that the timing of the stake sales and financing discussions is crucial. With the global oil market facing volatility, securing private capital for pipeline rehabilitation and operational upgrades could help Nigeria stabilise output, improve export reliability, and attract strategic investors ahead of a potential IPO.
Furthermore, sources indicate that the divestments and financing arrangements could unlock growth from marginal onshore fields vacated by international oil firms. Nigeria has struggled in recent years to boost crude output, with production constrained by security risks, infrastructure decay, and underinvestment. Strategic partnerships with investors capable of operational improvements, they argue, could be a turning point for both NNPC and the wider oil sector.
Yet significant challenges remain. Union resistance, security threats, and governance complexities could affect implementation. Analysts emphasise the need for careful balancing of fiscal objectives, labour relations, and infrastructure management to avoid disruptions.
NNPC’s push for private investment also reflects a trend among state-owned energy companies in Africa, where governments are increasingly leveraging private capital to address chronic underinvestment while preserving strategic control.
As NNPC prepares to open its bid process and secure pipeline financing, the oil sector and investors alike will be closely monitoring whether the combination of divestments, debt restructuring, and infrastructure upgrades can deliver tangible improvements in production, domestic energy supply, and export stability.
