The Nigerian National Petroleum Company (NNPC) Limited has announced plans to sell stakes in some of its oil and gas assets and has formally invited interested parties to register their bids.
According to an invitation document seen by Reuters, the registration process for the divestment will close on 10 January, after which pre-screening will commence. Qualified firms will then gain access to a secure virtual data room for further due diligence.
The move forms part of a broader strategic shift for the state-owned energy giant, which is simultaneously seeking to secure a $2bn (£1.58bn) financing package from Nexus Alliance, an infrastructure support company, to repair and upgrade its critically damaged pipeline network.
The funds, expected early next year, are intended to address extensive issues of theft, vandalism, and decay that have long plagued Nigeria’s over 5,000-kilometre pipeline system, hampering crude output and domestic energy supply.
This dual strategy of divestment and refinancing comes against a backdrop of significant fiscal adjustments from the federal government.
The presidency confirmed that President Bola Tinubu has approved the write-off of approximately $1.42bn and N5.57tn in legacy debts owed by the NNPC to the Federation Account, following recommendations from a reconciliation committee. However, a separate, long-running dispute over an alleged $42.37bn in under-remittances between 2011 and 2017 remains unresolved, with the NNPC maintaining that all revenues were properly accounted for.
The asset sale plan is likely to reignite concerns from Nigeria’s powerful 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) strongly opposed any move to reduce the government’s stake in joint venture assets, warning that such divestments could destabilise the economy, weaken the industry, and jeopardise workers’ welfare. Currently, the federal government holds between 55 and 60 per cent of such assets through the NNPC.
In a related operational update, the NNPC announced the successful restoration of the Escravos–Lagos Pipeline System (ELPS), which had been shut down following an explosion on 10 December. The company stated that the pipeline is now fully operational, crediting a coordinated emergency response and support from host communities and security agencies.
The prequalification process for the asset sales will be based on the technical and financial capacity of bidders, to be followed by document evaluation, negotiations, and regulatory approvals.
Nigeria has struggled to boost crude production and attract fresh investment, with the government now targeting incremental growth from marginal onshore fields being vacated by international oil companies.
.The NNPC has stated its ambition to attract $30bn in investment by 2027 and to increase oil output to at least 1.8 million barrels per day.
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