Market Intelligence
Oil and Gas Nigeria

Nigeria Renewable Energy

A renewable energy transition in Nigeria present opportunities for investment in renewable energy projects.

Nigerian National Petroleum Corporation (NNPC) currently has several planned infrastructure projects as it undergoes a transition to renewable energy.  There are opportunities for investment in renewable energy projects including:
1.    Sugarcane fuel ethanol (six locations)
2.    Cassava fuel Ethanol (five locations)
3.    Oil Palm biodiesel in Calabar (Cross River State)
4.    Solar and wind energy power generation
5.    Emission reduction

Natural gas pipeline investment opportunities in southern Nigeria (totaling $2.2 - $2.7 billion in required funding).

Individual projects include:

  • Pipeline running from Qua Iboe Terminal (QIT) in (Akwa Ibom State) to Ukanafun-Obigbo-Obiafu-Obrikom Gas Pipeline, and Qua Iboe Terminal (Akwa Ibom State) to the Obiafu-Obrikom gas plant (Rivers State). 
  • Pipeline from the ExxonMobil terminal (Akwa Ibom) to Ajaokuta (Kogi State) connecting to the existing Ajaokuta-Kaduna-Kano (AKK) gas pipeline.

Liquefied Natural Gas and Transport:  There is an emphasis on the use of liquefied natural gas (LNG), compressed natural gas (CNG), and liquefied petroleum gas (LPG) as fuel for automobiles. This is seen as an alternate fuel source for the transport sector. NNPC is looking to co-locate these stations with existing petrol stations to provide “alternative choices for transport, offering cheaper energy compared to other energy sources currently in use”. Small-to- mid-sized LNG plants across the geography will support pipeline gas and require new LNG infrastructure.

Free Trade Zone (FTZ) Development: NNPC is seeking investment to develop gas industrial park facilities in two FTZs: (1) Ogidigben FTZ (Delta State) relates to a deep seaport, gas processing facility, and power station; and (2) Brass FTZ (Bayelsa State) has investment opportunities in petrochemicals, gas processing facilities, gas fired power plant, a condensate refinery, and an LNG plant expansion.

Power Plants: As part of its gas and power portfolio, NNPC is building several power plants. Three test thermal power plants along the AKK corridor (in Abuja, Kano, and Kaduna) are already in construction.  There are two additional plants in Rivers and Lagos States planned as well. 

Refineries and Petrochemicals: NNPC is seeking $2.5billion to rehabilitate two existing refineries and petrochemical plants. The Warri Refining and Petrochemical Company and the Kaduna Refining and Petrochemical Company (WRPC and KRPC). 
Development Projects: NNPC seeks $4.5 billion for various development projects, including a pipe mill, a gas to animal protein feed plant, medical manufacturing plant, and a multi-specialist hospital.  NNPC is particularly keen on getting investment for the pipe mill to meet current domestic demand in the oil and gas industry and the hospital to address the dearth of in-country care and curb an estimated $3-5 billion in medical tourism.

U.S. companies interested in accessing any of these opportunities are encouraged to contact the U.S. Commercial Service Nigeria for guidance. For more information, please contact Benedicta.Nkwoh@trade.gov.

03/24/2022