NNPC highlights downstream investments, urges operators to consider mergers

NNPC Limited’s Executive Vice President, Downstream, Dr Mumuni Dagazau, has linked the growing interest of investors in Nigeria’s downstream sector to consistent government policies and continued investment in oil and gas infrastructure.

Dagazau said the stable policy environment had encouraged partnerships and attracted more capital into the industry, while giving operators a level playing field.

He spoke at a panel session titled “Competition in Nigeria’s New Downstream Market: Balancing Market Power, Investment and Consumer Protection” during the 20th OTL Africa Downstream Energy Week in Lagos.

He highlighted NNPC Limited’s investments in pipeline infrastructure to improve the supply and distribution of petroleum products, as well as its investments in Compressed Natural Gas (CNG), Electric Vehicles (EVs) and Liquefied Petroleum Gas (LPG).

According to him, stability in the foreign exchange market has also made the sector more attractive to investors, alongside the relatively predictable policy environment.

Dagazau called on operators to explore practical ways of cutting operating costs to make the downstream market more competitive. He cited CNG trucking as one way to achieve this.

He also urged both large- and small-scale operators to embrace partnerships, collaborations and mergers rather than acquisitions, noting that such arrangements could help them build stronger and more sustainable businesses.

The OTL Africa Downstream Energy Week brings together stakeholders across Africa’s downstream energy value chain. Its 20th edition was held from 25 to 30 October 2026 at the Lagos Oriental Hotel, Victoria Island, under the theme “Secure Energy, Shared Prosperity”.