Nigeria’s state oil company, the Nigerian National Petroleum Company Limited (NNPCL), has unveiled an ambitious plan to attract $60 billion in new investments over the next five to seven years. The initiative is designed to ramp up crude oil production, expand gas development, and restore Nigeria’s refining capacity, positioning the country as a competitive energy hub in both regional and global markets.
The strategy, outlined by NNPCL leadership at global energy conferences and local industry briefings, aims to unlock large-scale projects across the value chain from refining to petrochemicals, gas pipelines, liquefied natural gas (LNG), and power generation. The central target is bold: achieve 3 million barrels of crude oil per day and 500,000 barrels per day of refining capacity by 2030, alongside a significant leap in gas output.
Why the $60 Billion Investment Push Matters
Nigeria is Africa’s largest oil producer on paper, but years of underinvestment, oil theft, pipeline vandalism, and a reliance on imported refined products have weakened its energy sector. Despite having three state-owned refineries with a combined capacity of 445,000 barrels per day, none are operating at full capacity.
As a result, Nigeria spends billions annually importing petrol, diesel, and aviation fuel, a paradox for a major crude exporter. The new $60 billion investment drive aims to reverse this imbalance by financing:
- Refinery rehabilitation and expansion
- New petrochemical and methanol plants
- Gas-to-power projects
- Large-scale pipelines like the Ajaokuta–Kaduna–Kano (AKK) line
- LNG expansion projects, including Nigeria LNG Train-7
- Compressed Natural Gas (CNG) rollout for transport
Selling the Plan to Investors
NNPCL argues that the plan will cut costly fuel imports, create jobs, boost foreign exchange earnings, and unlock downstream industries critical to industrialisation.
While oil remains central to Nigeria’s economy, NNPCL is placing increasing emphasis on gas as the country’s growth engine. Officials have outlined targets to raise daily gas production to between 10 and 12 billion standard cubic feet by 2030.
Gas is seen as a bridge fuel critical for domestic power generation, industrial development, and export revenues. The AKK pipeline, which is under construction, will transport natural gas from southern Nigeria to central and northern regions, spurring industries and gas-fired power plants along its route.
At the same time, LNG projects such as Train-7 are intended to capture global demand for cleaner fuels. With Europe seeking alternatives to Russian gas and Asian demand still strong, Nigeria sees LNG as a reliable foreign exchange earner.
Selling the Plan to Investors
NNPCL has been actively courting global financiers, international oil companies, and sovereign wealth funds to raise the $60 billion. At international gatherings, the company has emphasized policy reforms, a more stable investment climate, and the profitability of gas-focused projects.
The pitch is simple: Nigeria is not only an oil powerhouse but also a gas nation, holding one of the largest proven reserves in the world. By investing now, global partners can secure long-term returns while fueling Africa’s largest economy.
To strengthen its case, NNPCL highlights projects already underway, including:
- The $2.8 billion AKK pipeline
- LNG Train-7 with a projected 8 million tonnes per year capacity
- Ongoing refinery rehabilitation in Port Harcourt and Kaduna
- New methanol and fertilizer plants
- Nationwide CNG fueling infrastructure
Obstacles on the Road to $60 Billion
Despite the optimism, challenges remain significant. Nigeria’s oil and gas sector has faced persistent disruptions:
- Pipeline sabotage and theft: Billions of dollars worth of crude are lost annually due to theft and vandalism. Although recent government crackdowns have reduced losses, investor confidence has not fully recovered.
- Underinvestment: Years of uncertainty, policy inconsistency, and fiscal disputes have driven away international oil companies.
- Global capital shifts: With the energy transition gaining momentum, investors are increasingly cautious about committing to long-term fossil fuel projects.
- Downstream bottlenecks: Building and operating refineries, petrochemical plants, and industrial zones requires strong governance and bankable agreements, areas where Nigeria has historically struggled.
What Success Could Mean for Nigeria
If NNPCL secures the $60 billion and executes its plan, the impact on Nigeria’s economy could be transformative:
- Reduced import bills: Functional refineries would reduce the need for imported fuels, saving billions in foreign exchange.
- Job creation: Petrochemical plants, refineries, and gas-based industries could create hundreds of thousands of jobs.
- Industrial growth: Gas pipelines and power plants would supply reliable energy for industries, stimulating manufacturing.
- Export diversification: LNG and petrochemical exports could reduce Nigeria’s dependence on crude oil sales.
- Fiscal relief: Lower fuel imports could ease government subsidies and budgetary pressures.
In essence, Nigeria could shift from being a crude exporter and fuel importer to a value-adding energy hub.
Also read: Nigeria’s Lekoil to Unveil Ambitious Growth and ESG Strategy at AEW 2025
The Next 12–36 Months Will Be Crucial
The true test of NNPCL’s $60 billion vision lies in implementation. Global investors will be watching for:
- Signed financing agreements and joint ventures
- Final investment decisions (FIDs) on LNG and petrochemical projects
- Timelines and progress reports on refinery rehabilitation
- Security improvements along oil and gas pipelines
- Clear policy signals from the federal government
The next three years will reveal whether Nigeria can move from ambitious declarations to measurable progress.
FAQs
- Why is NNPCL targeting $60 billion in investments?
To boost crude oil production, expand gas development, and restore Nigeria’s refining capacity, reducing fuel imports and unlocking downstream industries. - What are the main projects under the plan?
Key projects include refinery rehabilitation, the AKK gas pipeline, Nigeria LNG Train-7, new petrochemical plants, and compressed natural gas (CNG) rollouts. - How much oil and gas does Nigeria want to produce by 2030?
NNPCL is targeting 3 million barrels of oil per day and between 10–12 billion cubic feet of gas per day by 2030. - What are the biggest challenges?
Pipeline theft and sabotage, underinvestment, global energy transition pressures, and governance issues in project delivery. - How will this plan benefit ordinary Nigerians?
If successful, it could reduce fuel prices, create jobs, provide reliable electricity, and grow local industries while strengthening the economy.
