FG urges private investors to fund oil refining, gas projects

The Federal Government, through the Petroleum Technology Development Fund, has called for stronger private sector participation in Nigeria’s midstream and downstream petroleum sectors, saying increased crude production must be matched with investment in refining, gas processing, pipelines, storage, logistics and human capital.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the call at the inaugural 2026 Petroleum Technology Development Fund Journal Summit on Wednesday in Abuja, where he said the ongoing reforms in the petroleum industry were designed to restore investor confidence and create a more predictable environment for private capital.

The PTDF Journal has historically provided a platform for research and technical knowledge on Nigeria’s petroleum industry. PTDF has described its publications as part of its broader commitment to education, research and innovation, while its intervention repository currently records 15,639 sponsored scholars and more than 1,700 research items.

The summit was organised around the theme, “Private Sector Participation in Nigeria’s Midstream and Downstream Petroleum Sector: Prospects, Challenges and the Way Forward.”

Lokpobiri, represented by his Technical Adviser, Emmanuel Sinime, said Nigeria’s crude production had risen from about one million barrels per day in 2023 to more than 1.7 million barrels per day, while active drilling rigs had increased from about 14 to over 60.

He said, “The federal government, under the able leadership of His Excellency Bola Tinubu, recognises that sustainable development of the Nigerian petroleum sector requires strong and vibrant private sector participation. The government’s role is to establish and enable a policy and regulatory environment, provide strategic directions, and ensure transparency and accountability.

“The ongoing reforms in the petroleum sector are therefore designed to restore investors’ confidence, improve regulatory certainty, and create conditions for sustainable private sector investment across the oil and gas value chain.”

The minister said the growth in upstream production would have limited impact if the country failed to develop the infrastructure required to transport, store, refine and distribute petroleum products efficiently.

He noted that the emergence of the Dangote Petroleum Refinery and the expansion of modular refineries, including Waltersmith and Aradel, demonstrated the potential of private investment to reshape the downstream sector.

Lokpobiri said, “Increased production must be matched by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity, and a competitive market that delivers value to consumers and investors.”

He added that the government was also working through the Nigerian Midstream and Downstream Petroleum Regulatory Authority to improve domestic gas pricing, develop rules against anti-competitive practices and promote fair access to pipelines, depots and terminals.

However, the minister warned that infrastructure deficits, logistics costs, regulatory uncertainty, market volatility and financing challenges remained major obstacles to investment.

“The issue will not judge us by the number of regulations that we issue or guidelines that we actually publish, but history will judge us by the number of businesses we actually inflate, the investment that we actually attract, the benefits of life that come out of these regulations,” he said.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also said private capital was critical to unlocking Nigeria’s gas resources.

He said the Petroleum Industry Act had provided a framework for improving regulatory certainty, while the Federal Government’s Decade of Gas Initiative was aimed at using gas to drive industrialisation, job creation, energy security and economic diversification.

According to him, Nigeria must attract investment into gas processing, transportation and distribution, as well as LPG, CNG, petrochemicals and other gas-based industries.

“The federal government cannot achieve this objective alone. We must continue to deepen collaboration with private investors, financial institutions, technology providers, and other stakeholders to mobilise the capital and expertise required to deliver these projects,” he said.

He identified infrastructure gaps, high financing costs, project development risks, regulatory bottlenecks and inadequate access to reliable energy infrastructure as some of the challenges confronting investors.

He also urged PTDF to strengthen collaboration with universities, research institutions and industry operators so that research could produce practical and commercial solutions.

The Executive Secretary of PTDF, Prof. Shuaibu Aliyu, said the inaugural summit was designed to take discussions in the Petroleum Technology Development Journal beyond its pages and create a platform for practical industry solutions.

He said the Journal serves as a bridge between researchers, academics, industry professionals and policymakers by disseminating research findings, technical innovations and industry knowledge.

According to him, PTDF would continue to focus on ensuring that research outputs move beyond publication into application, intellectual property development and commercialisation.

Aliyu said, “The growing involvement of private investors in refining, gas processing, logistics, storage, and the distribution of petroleum products present substantial opportunities for economic growth, job creation, technology development, and building local capacity.

“However, we are also confronted with challenges related to financing, infrastructure, regulatory certainty, access to technology, market efficiency, and technical capacity, all of which require open and constructive discussion.”

In his keynote address, the Managing Director of Waltersmith Petroman Oil Limited, Oladapo Filani, said Nigeria’s challenge had moved beyond producing skilled manpower to retaining expertise and converting knowledge into technology, businesses and economic value.

Filani said PTDF had sponsored more than 15,639 scholars and supported over 50,000 research projects, but argued that the changing structure of the petroleum industry required a new approach to human capital development.

“The challenge is no longer simply to produce skilled Nigerian; it is to retain that expertise, create opportunities to apply it and to convert knowledge into technology, businesses and economic value,” he said.

He identified infrastructure deficits, human-capital gaps, financing, commercial viability and investment uncertainty as interconnected challenges facing the midstream and downstream sectors.