NNPC: OIL SECTOR REFORMS ATTRACT $24BN INVESTMENT, $10BN MORE IN PIPELINE
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By: Balogun Ibrahim
The Nigerian National Petroleum Company Limited has revealed that recent reforms in Nigeria’s oil and gas sector have attracted over $24 billion in new investments, with an additional $10 billion expected, as the country pushes toward a production target of three million barrels per day.
This was disclosed by the Group Chief Executive Officer, Bayo Ojulari, during the 2026 Oloibiri Lecture and Energy Forum held in Abuja. The event brought together key stakeholders to discuss the future of Nigeria’s upstream oil sector.
Speaking through the Executive Vice President, Upstream, Udobong Ntia, Ojulari explained that resolving long-standing disputes and previously delayed Final Investment Decisions (FIDs) has significantly improved investor confidence, unlocking billions in capital inflows.
He added that the company is leveraging artificial intelligence and digital technologies to analyse decades-old data, reduce costs, and accelerate progress toward the production goal.
According to him, these reforms have already generated more than $24 billion from just two major projects, with additional investments—estimated at $10 billion—currently in development. This brings Nigeria’s total potential investment pipeline to about $34 billion, signalling renewed global interest in the sector.
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Ojulari emphasised that beyond funding, digital transformation is now critical. He warned that failure to adopt AI and properly utilise existing data could leave operators uncompetitive in the global energy market.
He noted that Nigeria possesses vast amounts of untapped data dating back to its first commercial oil discovery in 1956, much of which remains underutilised. With the right technology, he said, achieving the three-million-barrel target within the next three to four years is realistic.
To reach this goal, NNPC has outlined a three-part strategy: safeguarding existing assets, accelerating short-term production growth, and restructuring its portfolio to attract new investors and increase indigenous participation.
He stressed the importance of maintaining infrastructure properly, noting that aging facilities should not be an excuse for inefficiency, while also highlighting innovative financing models to fast-track production from mature assets.
Ojulari further explained that ongoing portfolio restructuring aims to unlock value and encourage fresh investments from new players, adding that investors are more likely to commit capital in a stable and predictable regulatory environment.
He credited the Petroleum Industry Act for improving regulatory clarity and resolving issues such as cash call arrears, which had previously hindered investment.
Describing the three million barrels per day target as more than just a production goal, he said it reflects Nigeria’s ability to manage regulation, capital, and digital innovation effectively.
Also speaking at the event, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said Nigeria already has the technical capacity to transform its energy sector but must improve execution.
He described the Petroleum Industry Act as a major turning point, providing transparency, predictability, and a more investor-friendly environment.
Ekpo also highlighted the importance of natural gas, calling it central to Nigeria’s economic growth, industrialisation, power generation, and export diversification.
He added that digitalisation, investment, and sound policy must work together to unlock the country’s full energy potential, noting that technologies like AI and automation can improve efficiency, reduce downtime, and enhance safety.
The Oloibiri Lecture and Energy Forum, organised by the Society of Petroleum Engineers, commemorates Nigeria’s first oil discovery in Oloibiri, Bayelsa State, in 1956, and serves as a platform for dialogue on policy and innovation in the energy sector.
Stakeholders at the forum agreed that while Nigeria has the resources and policy framework to boost production, success will depend on effective implementation, regulatory consistency, and the adoption of modern technologies.
Meanwhile, the Petroleum Technology Development Fund stressed the need for stronger integration of digital tools, efficient capital deployment, and robust policy frameworks to exceed the production target.
The agency also highlighted ongoing efforts to build local capacity through advanced training programmes, research initiatives, and partnerships between academia and industry, aimed at driving innovation and solving sector-specific challenges.
Despite the progress, stakeholders noted that challenges such as operational inefficiencies, regulatory delays, and the need for stronger collaboration across the industry still need to be addressed.
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