The Federal Government has called for increased private sector investment in Nigeria’s oil and gas industry, particularly in refining, gas processing, pipelines, storage, logistics and related infrastructure, as the country seeks to translate rising crude oil production into broader economic growth.
The call was made on Wednesday, September 30, 2026, at the inaugural Petroleum Technology Development Fund (PTDF) Journal Summit in Abuja, which focused on “Private Sector Participation in Nigeria’s Midstream and Downstream Petroleum Sector: Prospects, Challenges and the Way Forward.”
Key Highlights
- Federal Government seeks more private sector investment in Nigeria’s oil and gas sector.
- Crude oil production has risen from about 1 million barrels per day in 2023 to more than 1.7 million barrels per day, according to the government.
- Active drilling rigs have increased from about 14 to more than 60.
- Government says rising production must be matched by investments in refining, pipelines, storage and logistics.
- Dangote Petroleum Refinery, Waltersmith and Aradel were cited as examples of private-sector investment.
- Gas investment opportunities include processing, transportation, LPG, CNG and petrochemicals.
- PTDF says private investment can support jobs, technology development and local capacity.
- Industry stakeholders called for stronger infrastructure, policy stability and improved access to financing.
Government Seeks Private Capital for Oil and Gas
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, represented by his Technical Adviser, Emmanuel Sinime, said Nigeria’s recent growth in upstream activity must be matched by investments across the midstream and downstream value chain.
According to the minister, crude oil production has increased from roughly one million barrels per day in 2023 to more than 1.7 million barrels per day, while active drilling rigs have risen from about 14 to over 60.
Lokpobiri said increased production alone would not deliver the desired economic benefits without adequate infrastructure and efficient systems for moving, storing and processing petroleum resources.
“Increased production must be matched by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity, and a competitive market that delivers value to consumers and investors,” he said.
Dangote Refinery, Modular Plants Show Private Investment Potential
Lokpobiri pointed to the Dangote Petroleum Refinery and the expansion of modular refineries such as Waltersmith and Aradel as examples of what private capital can contribute to Nigeria’s downstream petroleum industry.
The government, he said, is focused on creating an enabling policy and regulatory environment, providing strategic direction and improving transparency to strengthen investor confidence.
The Federal Government has also continued to emphasise domestic refining as part of efforts to retain more value within Nigeria’s petroleum value chain.
NMDPRA Targets Better Market and Infrastructure Access
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is working on measures relating to domestic gas pricing, anti-competitive practices and access to pipelines, depots and terminals.
However, investors continue to face challenges including infrastructure deficits, high logistics costs, regulatory uncertainty, market volatility and financing constraints.
Lokpobiri said the success of the petroleum sector should ultimately be measured by the businesses created, investments attracted and tangible benefits delivered rather than simply by the volume of regulations introduced.
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Government Seeks Private Investment in Nigeria’s Gas Sector
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also stressed the importance of private capital to the development of Nigeria’s gas resources.
Ekpo said the Petroleum Industry Act has strengthened the regulatory framework, while the Decade of Gas Initiative is designed to promote the use of natural gas for industrialisation, job creation, energy security and economic diversification.
Investment opportunities, he said, exist across gas processing, transportation, distribution, liquefied petroleum gas, compressed natural gas and petrochemicals.
“The federal government cannot achieve this objective alone,” Ekpo said, calling for deeper collaboration with private investors, financial institutions and technology providers.
The Federal Government has recently highlighted major gas investments, including the $800 million Ima Gas Project, as part of efforts to unlock Nigeria’s gas resources for industrialisation and economic development.
PTDF Links Research to Industry Development
PTDF Executive Secretary, Prof. Shuaibu Aliyu, said the summit was designed to help translate research and technical knowledge into practical solutions for the petroleum industry.
The Fund has sponsored more than 15,639 scholars and supported research initiatives aimed at developing technical expertise in the sector.
Aliyu said greater private-sector participation could create opportunities for economic growth, employment, technology development and local capacity building.
He also identified financing, infrastructure, regulatory certainty, technology access, market efficiency and technical skills as continuing challenges for the industry.
Waltersmith Calls for Stronger Human Capital
Managing Director of Waltersmith Petroman Oil Limited, Oladapo Filani, said Nigeria’s human-capital challenge has evolved from simply producing trained professionals to retaining expertise and converting knowledge into technology, businesses and economic value.
He said the country requires engineers, project managers, process specialists and commercial professionals capable of operating complex energy facilities.
For investors, Filani said, the critical consideration is whether projects can generate predictable and competitive risk-adjusted returns.
He also advocated an integrated energy ecosystem involving shared pipelines, gas processing, storage, power and logistics infrastructure to improve project economics and reduce operational constraints.
Infrastructure and Policy Stability Critical to Investment
The discussions at the PTDF summit highlighted the importance of creating conditions that allow private investors to commit long-term capital to Nigeria’s energy sector.
Infrastructure gaps, financing challenges and regulatory uncertainty remain key issues for projects across the midstream and downstream segments.
Recent industry initiatives have also focused on using public resources to attract private investment into gas and other energy infrastructure, reflecting a broader emphasis on public-private collaboration.
Nigeria Seeks More Value From Rising Oil Production
Nigeria’s push for greater private sector investment comes as the country works to expand domestic refining, develop its gas resources and strengthen infrastructure across the petroleum value chain.
The government has continued to promote investment opportunities in refining, gas processing, petrochemicals and related infrastructure as part of efforts to capture more value from Nigeria’s natural resources.
The outcome will depend on the ability to sustain policy stability, improve infrastructure, accelerate project execution and create conditions that make energy projects commercially viable for domestic and international investors.
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