mORGANABLE politics/Governance
The minister pointed to recent developments such as the Dangote Petroleum Refinery and the expansion of modular refineries like Waltersmith and Aradel as clear examples of how private investment can transform the downstream sector.
KaNo—
The Federal Government has called for increased private sector investment in Nigeria’s oil and gas industry, particularly in the midstream and downstream segments.
It warns that gains recorded in crude oil production could be undermined without corresponding investments in refining, gas processing, and critical infrastructure.
The appeal was made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural 2026 Petroleum Technology Development Fund Journal Summit held on Wednesday in Abuja.
Represented by his Technical Adviser, Emmanuel Sinime, the minister said the government’s ongoing reforms in the petroleum sector were aimed at restoring investor confidence, improving regulatory certainty and creating a more predictable environment for private capital to thrive.
He stressed that while Nigeria had recorded notable improvements in crude oil output, the benefits would remain limited unless investments were channelled into infrastructure that supports transportation, storage, refining and distribution of petroleum products.
According to him, crude oil production has increased significantly from about one million barrels per day in 2023 to over 1.7 million barrels per day, while the number of active drilling rigs has risen from approximately 14 to more than 60 within the same period.
Lokpobiri noted that such growth in upstream activities must be matched with robust development across the value chain to ensure efficiency and maximise economic returns.
“The Federal Government recognises that sustainable development of the petroleum sector requires strong and vibrant private sector participation. Government’s role is to provide the right policy environment, ensure transparency and create the conditions necessary for investment to flourish,” he said.
He added that Nigeria’s long-term energy security and economic stability depend on building adequate refining capacity and strengthening logistics networks.
The minister pointed to recent developments such as the Dangote Petroleum Refinery and the expansion of modular refineries like Waltersmith and Aradel as clear examples of how private investment can transform the downstream sector.
He said these projects demonstrate the potential of private capital to reduce Nigeria’s reliance on imported refined products and improve domestic supply chains.
“Increased production must be matched by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity, and a competitive market that delivers value to both consumers and investors,” he stated.
Lokpobiri further disclosed that the government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, was implementing measures to improve domestic gas pricing, promote fair access to pipelines and depots, and curb anti-competitive practices within the industry.
Despite these efforts, he acknowledged that several challenges continue to hinder investment, including infrastructure deficits, high logistics costs, regulatory uncertainty, market volatility and limited access to financing.
He emphasised that the success of reforms would ultimately be judged not by the number of policies introduced but by their impact on business growth and investment inflows.
“The issue will not judge us by the number of regulations that we issue but by the number of businesses we grow, the investments we attract and the benefits that accrue to Nigerians,” he said.
Also speaking at the summit, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, underscored the importance of private capital in unlocking Nigeria’s vast gas resources.
He said the Petroleum Industry Act had laid a solid foundation for regulatory stability, while the Federal Government’s Decade of Gas Initiative was designed to leverage gas for industrialisation, job creation and economic diversification.
Ekpo noted that significant investment opportunities exist across gas processing, transportation, distribution and utilisation, including liquefied petroleum gas, compressed natural gas and petrochemical industries.
“The government cannot achieve these objectives alone. We must deepen collaboration with private investors, financial institutions and technology providers to mobilise the capital and expertise required,” he said.
He identified infrastructure gaps, high financing costs, project development risks and regulatory bottlenecks as major constraints facing investors in the gas sector.
Ekpo also called on the Petroleum Technology Development Fund to strengthen its collaboration with academic institutions and industry stakeholders to ensure that research outputs translate into practical and commercially viable solutions.
In his remarks, the Executive Secretary of the Petroleum Technology Development Fund, Prof. Shuaibu Aliyu, said the summit was conceived as a platform to bridge the gap between research and real-world industry application.
He explained that while the PTDF Journal had long served as a repository of technical knowledge, the new initiative was aimed at moving discussions beyond academic publications to actionable solutions.
Aliyu disclosed that the fund’s intervention programmes had so far supported 15,639 scholars and produced over 1,700 research outputs, reflecting its commitment to human capital development and innovation in the petroleum sector.
He said the growing involvement of private investors in refining, gas processing and logistics presents significant opportunities for economic growth, job creation and local capacity building.
“However, we must also address challenges related to financing, infrastructure, regulatory certainty, access to technology and technical capacity. These issues require open and sustained dialogue among stakeholders,” he said.
Delivering a keynote address, the Managing Director of Waltersmith Petroman Oil Limited, Oladapo Filani, said Nigeria must shift focus from merely producing skilled manpower to retaining talent and converting knowledge into tangible economic value.
He noted that although PTDF had made significant contributions to human capital development, the evolving dynamics of the petroleum industry demand a new approach.
“The challenge is no longer simply to produce skilled Nigerians; it is to retain that expertise, create opportunities for its application and translate knowledge into technology, businesses and economic value,” Filani said.
He identified infrastructure deficits, human capital gaps, financing constraints and investment uncertainty as interconnected issues affecting the midstream and downstream sectors.
Filani stressed the need for stronger collaboration between government, academia and industry to ensure that research and innovation drive growth across the petroleum value chain.
The summit, themed “Private Sector Participation in Nigeria’s Midstream and Downstream Petroleum Sector: Prospects, Challenges and the Way Forward,” brought together policymakers, industry players, academics and investors to deliberate on strategies for strengthening the sector.
Participants agreed that while Nigeria has made progress in increasing crude oil production and implementing regulatory reforms, sustained growth would depend largely on the ability to attract and retain private investment.
They also emphasised the importance of addressing structural challenges, improving infrastructure and creating a stable policy environment to unlock the full potential of the petroleum industry.
With global energy markets becoming increasingly competitive and volatile, stakeholders at the event warned that Nigeria must act decisively to position itself as an attractive investment destination or risk losing opportunities to other oil-producing nations.
