The Federal Government is seeking stronger private-sector investment in Nigeria’s midstream and downstream petroleum sectors as rising crude oil production increases the need for refining, gas processing, pipelines, storage and logistics infrastructure.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the call on Wednesday at the inaugural Petroleum Technology Development Fund (PTDF) Journal Summit 2026 in Abuja, where he said government could not develop the petroleum industry alone.
Lokpobiri, who was represented by his Technical Adviser, Emmanuel Sinime, said Nigeria’s crude oil production had risen from about one million barrels per day in 2023 to more than 1.7 million barrels per day. The number of active drilling rigs, he added, had also increased from about 14 to more than 60.
He said the increase in production needed to be matched by infrastructure capable of moving, storing and processing petroleum resources efficiently. He identified refining, gas processing, pipelines, storage and logistics among the areas requiring further investment.
“The federal government cannot achieve this objective alone,” Lokpobiri said, calling for deeper collaboration with private investors, financial institutions, technology providers and other stakeholders to mobilise the capital and expertise needed for the sector.
The Federal Government’s call comes as ownership of Nigeria’s upstream oil industry continues to shift toward indigenous operators. Lokpobiri said Nigerian oil and gas companies now account for more than half of the country’s crude oil production, following major divestment transactions by international oil companies.
But the growing role of local producers also increases the importance of infrastructure that can connect production to refineries, gas users and petroleum-product markets. Industry stakeholders at the summit identified financing constraints, infrastructure deficits, regulatory uncertainty, project risks and limited technical capacity as obstacles to greater private-sector participation.
PTDF Executive Secretary, Professor Shuaibu Aliyu, said private investment in refining, gas processing, logistics, storage and petroleum-product distribution could support economic growth, job creation, technology development and local capacity building. He also called for stronger links between research institutions and industry so that research could move into practical applications and commercial ventures.
Oladapo Filani, managing director of Waltersmith Petroman Oil Limited and keynote speaker at the summit, also pointed to infrastructure and financing challenges across the midstream and downstream sectors. He highlighted gaps in gas gathering and processing, pipelines, storage, terminals and distribution, alongside the high cost of capital and long investment periods required for major projects.
The discussions underline a challenge for Nigeria’s next phase of petroleum development: increasing crude production is only one part of the equation. The country also needs sufficient infrastructure and private capital to move, process and commercialise those resources and capture more value within the domestic economy.
