NNPC plans asset sales, seeks $2bn lifeline to fix pipelines amid debt controversy 

The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced plans to divest stakes in selected oil and gas assets while negotiating about $2 billion in new financing to rehabilitate critical pipeline infrastructure, as it pushes to revive production and attract fresh investment.

A Reuters report said NNPC has already issued an invitation for bids for some of its oil and gas assets. Interested companies are required to register online by January 10, after which a pre-screening exercise will be conducted. Successful firms will then be granted access to a secure virtual data room.

According to the invitation document, prequalification will be based on both technical competence and financial capacity, before advancing to document evaluation, negotiations and regulatory approvals.

The planned divestment has, however, rekindled resistance from major oil sector unions. In September, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) opposed government plans to reduce its stakes in joint venture (JV) assets operated by NNPC.

The unions warned that cutting government equity by 30–35 per cent from the current 55–60 per cent could weaken the oil industry, destabilise the economy and threaten jobs.

Nigeria has struggled to increase crude oil output in recent years and is now relying on marginal onshore fields vacated by international oil companies to drive incremental production growth.

In a separate report, Bloomberg disclosed that NNPC is in talks with Nexus Alliance for a $2 billion financing deal aimed at overhauling the country’s oil and gas pipeline network.

Nigeria’s more than 5,000 kilometres of pipelines have suffered years of neglect, vandalism, theft and ageing infrastructure, leaving many major crude and gas lines operating below capacity or shut down entirely.

People familiar with the discussions said NNPC expects to receive the funds early next year and will channel them into repairing vandalised pipelines, upgrading infrastructure and reducing leakages.

The company has been seeking fresh capital as part of a broader refinancing effort, including talks with lenders in Saudi Arabia, as it targets crude production of at least 1.8 million barrels per day and higher gas output.

NNPC is also aiming to attract $30 billion in investment by 2027, with expectations of achieving about half of that target in 2026, according to sources cited by Bloomberg.

As part of its longer-term strategy, the state-owned energy firm is working towards an initial public offering, seeking to improve transparency, governance and financial stability to make the listing possible.

Checks showed that Nexus Alliance Limited is a Nigerian-based firm that provides training, consulting and asset performance management services across the oil and gas, energy and infrastructure sectors.

Meanwhile, NNPC announced that it has successfully restored operations on the Escravos–Lagos Pipeline System (ELPS) in Warri, Delta State, following an explosion on December 10, 2025.

In a statement signed by its spokesman, Andy Odeh, the company said emergency response protocols were immediately activated, enabling rapid repairs, pressure testing and safe recommissioning of the pipeline.

“Today, the pipeline is fully operational, reaffirming our resilience and commitment to energy security,” the statement said, crediting host communities, regulators, security agencies, partners and staff for the swift restoration.

In a related development, the Presidency disclosed that President Bola Tinubu has approved the cancellation of about $1.42 billion and ₦5.57 trillion in legacy debts owed by NNPC to the Federation Account.

According to a post on the Presidency’s X handle, the write-off covered obligations up to December 31, 2024, including Production Sharing Contracts, Domestic Supply Obligations, repayment agreements, modified carry arrangements and Joint Venture/PSC royalty receivables, with corresponding accounting adjustments already effected.

The Presidency noted, however, that new obligations for January to October 2025 remain outstanding and are being actively recovered, while a long-running dispute over an alleged $42.37 billion under-remittance between 2011 and 2017 remains unresolved, with NNPC disputing the claim.