By Ono Yima
The Nigerian National Petroleum Company Limited (NNPC Ltd.) is in talks to secure $2 billion in financing to repair and upgrade pipeline infrastructure severely damaged by years of oil theft and vandalism, in a renewed effort to revive the country’s struggling petroleum sector.
Industry sources say the state-owned energy firm is negotiating the funding with Nexus Alliance, a company specialising in pipeline infrastructure support. If concluded, the financing is expected to be available in early 2026, with the proceeds earmarked for critical rehabilitation works across Nigeria’s onshore pipeline network.
Nigeria’s oil pipelines have suffered extensive damage from illegal tapping, sabotage and neglect, leading to persistent crude losses, frequent spills and prolonged production shutdowns. The situation has cost Africa’s largest oil producer billions of dollars in lost revenue over the past decade and contributed to Nigeria’s inability to meet its OPEC production quota.
Neither NNPC nor Nexus Alliance responded to requests for comment on the negotiations.
The proposed pipeline financing forms part of a broader capital-raising and refinancing drive by NNPC, which has been engaging international lenders, including financial institutions in the Middle East, as it seeks to stabilise operations and fund long-delayed infrastructure upgrades.
NNPC is targeting $30 billion in new investment by 2027, with plans to secure roughly half of that amount by 2026, according to people familiar with the strategy. The funds are expected to support efforts to lift crude oil production to at least 1.8 million barrels per day, while expanding gas output to meet domestic and export demand.
Nigeria’s oil production has remained below capacity for years, averaging about 1.5 million barrels per day in recent months, as aging infrastructure, insecurity in the Niger Delta and underinvestment continue to weigh on output.
Pipeline theft remains one of the sector’s most costly challenges. Industry estimates suggest Nigeria loses over 200,000 barrels per day to illegal bunkering and pipeline breaches, translating into hundreds of millions of dollars in foregone revenue annually, alongside severe environmental damage.
The pipeline repair initiative also aligns with NNPC’s longer-term ambition to improve corporate governance and position the company for a potential initial public offering (IPO), a goal that has been repeatedly delayed. Company officials have acknowledged that stronger financial transparency and operational efficiency are prerequisites for any future listing.
The financing push comes amid broader economic reforms under President Bola Tinubu’s administration, including fuel subsidy removal and foreign exchange liberalisation, measures aimed at restoring investor confidence but which have increased short-term economic pressure on citizens.
Analysts caution that while the proposed $2 billion financing could deliver meaningful improvements, sustained success will depend on improved security, effective anti-theft measures and consistent regulatory reforms. Previous pipeline rehabilitation efforts have often been undermined by renewed sabotage shortly after repairs.
For Nigeria, the stakes are high. Restoring pipeline integrity is critical to boosting production, stabilising revenues and supporting broader economic recovery.