The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced plans to divest stakes in some of its oil and gas assets, inviting interested investors to submit bids as it seeks fresh capital to boost production and upgrade critical infrastructure.This was disclosed in an invitation document, whereby prospective bidders are required to register online by January 10. This will be followed by a pre-screening exercise, after which qualified firms will be granted access to a secure virtual data room.
The divestment process will involve technical and financial prequalification, document evaluation, negotiations and regulatory approvals.However, the move has reignited opposition from two powerful oil sector unions. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) had earlier warned against reported plans to reduce government stakes in joint venture assets by up to 30–35 per cent.
The unions cautioned that such divestment could threaten workers’ welfare, weaken the industry and destabilise the broader economy. Presently, the federal government holds between 55 and 60 per cent equity in most JV assets through NNPC.
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The asset sale comes as Nigeria struggles to lift crude oil output and attract new investment, particularly following the exit of several international oil companies from onshore fields. Authorities are now banking on marginal fields and renewed private sector participation to drive incremental production growth.
NNPC is reportedly in discussions to secure about $2 billion in financing from Nexus Alliance to rehabilitate the country’s vast pipeline network. Spanning over 5,000 kilometres, Nigeria’s oil and gas pipelines have been severely impacted by vandalism, theft and ageing infrastructure, leading to frequent disruptions and reduced capacity.
The funding, expected early next year, would be used to repair damaged pipelines, reduce leaks and improve reliability. The company is also engaging lenders from Saudi Arabia as part of a broader refinancing strategy. NNPC aims to raise oil production to at least 1.8 million barrels per day and attract $30 billion in investment by 2027, with half of that target expected by 2026. As a commercial entity established under the Petroleum Industry Act (PIA) 2021, the company continues to position itself for greater transparency and a potential future initial public offering.
