…Nigeria Requires $30 to $50 Billion Fresh Investment in Oil, Gas Infrastructure

-Felix Douglas

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) made it known that Nigeria’s financial requirements for fresh investment in the oil and gas sector is between $30 billion and $50 billion, covering gas processing, fertiliser production, liquefied petroleum gas (LPG), flare-gas commercialisation and supporting infrastructure.

Speaking on Monday at the opening ceremony of the OTL Africa Downstream Energy Week 2026 in Lagos, the authority Chief Executive, Engr. Rabiu Umar said this investment opportunities also existed in the construction and expansion of depots, jetties, coastal shipping facilities and petroleum product pipelines, with private investors expected to play a significant role through public-private partnerships.

He announced the launching of the Revision 2 of the Nigerian Gas Transportation Network Code, introducing improved provisions for open access to gas pipelines, transparent transportation tariffs and more efficient gas trading.

Umar said the revised code would build on the progress recorded since the introduction of the original network code in 2020 and its first revision in 2024, while providing a framework for the development of cross-border gas transportation across Africa.

According to him, the revised code provides clearer rules for access to pipelines, capacity booking, gas nominations, network balancing, measurement and gas quality, thereby improving transparency and investor confidence.

He disclosed that gas imbalance on the Western Network had declined by about 30 per cent in the first half of 2026, reflecting improvements recorded since the previous revision.

The NMDPRA chief said Revision 2 would also establish initial regulatory provisions for the proposed trans-African pipeline network, as countries deepen efforts to integrate their gas markets.

He called on gas shippers, pipeline operators, transporters and investors to take advantage of the revised framework.

The announcement came as Umar highlighted the transformation of Nigeria’s domestic fuel supply following the expansion of local refining capacity.

He said domestic refineries supplied about 74 per cent of petrol consumed in Nigeria in September, compared with approximately 44 per cent in September 2025, while petrol imports fell by 54 per cent, from 22.1 million litres per day to 10.2 million litres per day.

According to him, the growing contribution of domestic refineries helped Nigeria maintain fuel supplies amid international market disruptions and rising crude oil prices.

He, however, cautioned that the country must not become complacent, noting that much of the domestic petrol supply currently depends on one large refinery.

Umar said the authority would continue to support modular refineries, work with the Nigerian National Petroleum Company Limited (NNPC) towards the return of the Port Harcourt, Warri and Kaduna refineries, and maintain competitive import channels.

He also assured fuel importers that import licences would continue to be issued under published, merit-based criteria applicable to all qualified operators.

The NMDPRA chief disclosed that petrol supply from domestic refineries declined in September from the previous month’s peak as exports increased, underscoring the need to balance regional trade with domestic supply requirements.

He said petrol stock cover stood at approximately 24 days in September, below the authority’s 30-day threshold, while cooking gas stocks were tighter at about 16 days.

The authority is targeting between 30 and 45 days of product sufficiency and plans to establish a National Strategic Stock through a pilot programme with NNPC Limited at depots in Ibadan, Enugu and Suleja.

The initiative, he explained, would help cushion the economy against international price shocks, supply disruptions and national emergencies.

Umar further disclosed that domestic refineries supplied 93 per cent of diesel received into the market in September, although diesel receipts fell to an eight-month?

He said the authority was also monitoring the impact of high prices on diesel imports and domestic distribution, while domestic aviation fuel supplies recorded an improvement during the month.

Beyond petroleum products, Umar identified natural gas as a major driver of industrial development, energy security and regional economic integration.

He said Nigeria had approximately 215 trillion cubic feet of gas reserves and 37 billion barrels of crude oil reserves, but was utilising only about half of its installed gas processing capacity.

He noted that the completion of key gas infrastructure projects, including the Ajaokuta-Kaduna-Kano pipeline, the Oben-Obiafu-Obrikom (OB3) pipeline and the Escravos-Lagos Pipeline System midline compressor, would increase Nigeria’s gas transportation capacity from 2.2 billion cubic feet per day to 4.2 billion cubic feet per day.

The expansion, he said, would improve the movement of gas from southern production centres to northern markets, supporting power generation, manufacturing and other gas-based industries.

On the LPG market, Umar said consumption had risen beyond available supply, creating an investment opportunity for companies willing to expand domestic production, storage and distribution.

He also highlighted regulatory measures aimed at strengthening consumer protection, including collaboration with the Federal Competition and Consumer Protection Commission, the development of regulations against anti-competitive practices and the modernisation of laboratories responsible for petroleum product testing.

Umar said all petrol supplied in Nigeria now met the 50-parts-per-million sulphur standard, while the authority was upgrading its laboratories to international standards.

He added that monthly market data would continue to be published to improve transparency and provide reliable information for industry participants.

The NMDPRA chief also called for greater cooperation among African countries to reduce dependence on imported refined petroleum products.

He observed that Africa produces approximately five million barrels of crude oil daily but imports about 70 per cent of its refined fuel requirements, despite its substantial hydrocarbon resources.

He advocated increased domestic refining, shared regional infrastructure, harmonised regulatory standards, greater mobilisation of African capital and coordinated strategic petroleum stocks.

Umar, who is also chairman of the West Africa Regulators’ Forum, proposed a phased approach to regulatory convergence, beginning with alignment of fuel standards and market data in 2026 and 2027, followed by mutual recognition of licences and common cross-border infrastructure codes in 2028 and 2029.

By 2030, he said, the region should work towards coordinated strategic reserves, cleaner fuel standards and a credible West African reference price.

He stressed that regional integration should not prevent individual countries from taking measures to protect their domestic energy security.

The authority’s priorities, he added, include securing reliable crude feedstock for local refineries through the Domestic Crude Supply Obligation and the Naira-for-Crude initiative, improving infrastructure, promoting fair competition and maintaining predictable licensing procedures.

Umar urged refiners to prioritise domestic supply, marketers and logistics operators to invest in storage and distribution, financiers to support critical infrastructure, and African governments to strengthen regulatory cooperation.

He said the ultimate objective was to ensure that Nigeria’s expanding domestic energy capacity translated into improved household welfare, industrial growth, employment and increased regional trade.

The 2026 OTL Africa Downstream Energy Week, which runs from October 25 to 30, is being held under the theme, “Secure Energy, Shared Prosperity,” marking the twentieth anniversary of the industry gathering.