The Nigerian National Petroleum Company is negotiating about $2 billion in financing with infrastructure firm Nexus Alliance to rehabilitate pipelines damaged by years of theft and vandalism. The funds are expected to arrive in early 2025 and would be devoted to repairing critical pipeline assets that have constrained the country’s oil and gas output.
NNPC pipeline financing to target theft-hit networks
People familiar with the talks told Reuters that the proposed facility would help reverse chronic infrastructure decay that has cost Africa’s largest oil producer billions of dollars in lost production and caused widespread environmental damage. Repeated breaches and leaks have disrupted crude evacuation and export operations, holding back output in recent years.
NNPC has engaged several international lenders as part of a broader refinancing and capital-raising push. Sources said the company has held discussions with Saudi Arabia-based financial institutions and other international banks as it seeks to restructure its balance sheet and fund operational improvements.
The pipeline project is one element of an ambitious plan to attract $30 billion in investment by 2027, with roughly half targeted for mobilisation by 2026. Leadership at NNPC has linked the capital drive to goals of raising oil production to at least 1.8 million barrels per day while expanding gas output to meet domestic and export demand.
Although Nigeria’s crude output has hovered around 1.5 million barrels per day, below its OPEC quota and historical peaks, executives and analysts say a sustained recovery will require not only capital but also improved security in oil-producing regions and effective anti-theft measures. Industry estimates attribute losses from theft and sabotage to more than 200,000 barrels per day, a figure that translates into hundreds of millions of dollars in foregone revenue each year.
NNPC and Nexus Alliance did not immediately respond to requests for comment. For Nexus Alliance the deal would represent a significant investment in African energy infrastructure. The firm has worked on pipeline projects in emerging markets, but details of its ownership and financial backing are limited in public sources.
The financing would not be a complete remedy. Analysts note that modernising Nigeria’s oil infrastructure will require continued investment beyond the proposed facility, sustained improvements in regional security and consistent regulatory reform. NNPC has pledged to streamline operations, improve financial disclosure and reduce opacity as it prepares for a long-anticipated initial public offering.
Company officials view a potential IPO as a route to fresh capital and stronger corporate governance, though progress toward a listing has been gradual. Critics continue to question NNPC’s dual role as both commercial operator and sector regulator, arguing that clearer separation would improve efficiency and accountability.
These developments come amid sweeping economic reforms under President Bola Tinubu, including fuel subsidy removal and currency adjustments intended to stabilise public finances and attract foreign investment. While such measures may bring near-term social costs, authorities are positioning the energy sector to become more attractive to external investors.
If finalised, the Nexus Alliance facility would be a major step toward repairing theft-ravaged infrastructure and restoring more reliable output from Nigeria’s oil and gas networks. Officials and market participants will be watching closely to see whether the financing delivers measurable improvements in security, production and environmental management.
Key Takeaways:
- NNPC pipeline financing of about $2bn is being negotiated with Nexus Alliance to repair theft-damaged pipelines.
- The funds, expected in early 2025, aim to boost crude and gas output and reduce losses from theft.
- The plan forms part of a wider $30bn investment target and refinancing drive ahead of a planned IPO.
