Oil Downstream Sector Undergoing Transformation – NNPCL

The Executive vice president (EVP) of downstream, NNPC Ltd., says the nation’s downstream oil and gas sector is undergoing a transformation driven by deregulation, foreign exchange reforms, and strategic collaborations.

He spoke at the 19th edition of the OTL Africa Energy Week in Lagos on Monday.

He said recent policy reforms had unlocked new growth opportunities, encouraging integration, innovation, and stronger partnerships across the energy value chain.

“We are witnessing strategic measures, supply partnerships, and joint investments that signal a shift from siloed operations to integrated ecosystems.

“These developments are not merely transactional; they are structural, redefining how we produce, distribute, and consume energy,” Mr Dagazau said.

The NNPC executive noted that sustaining the current momentum required prioritising key enablers such as security, infrastructure, innovation, and transparency.

He said, “The safety of our people and assets is foundational. Investment in robust infrastructure is essential to meet demand and unlock new opportunities.”

Mr Dagazau said frameworks like the Petroleum Industry Act (PIA) and fiscal incentives for renewable and gas projects were creating a stable environment for long-term investment.

He emphasised the growing role of digitisation, automation, and low-carbon technologies, saying they were key to achieving operational excellence and reducing environmental impacts.

Mr Dagazau also noted that government reforms had catalysed growth in the liquefied petroleum gas (LPG) and compressed natural gas (CNG) markets, opening new business frontiers and empowering indigenous small and medium enterprises.

“Despite local and global headwinds, Nigeria’s downstream sector enjoys strategic advantages. Abundant reserves and expanding infrastructure position the country as a regional energy hub,” Mr Dagazau noted.

He added that the transition to cleaner fuels presented niche export opportunities, while access to international financing platforms was enhancing competitiveness.

He explained, “Collaboration is Africa’s new competitive edge. To consolidate our gains and unlock new frontiers, cooperation must become our default mode.”

He noted that platforms such as OTL Africa Downstream Week remained vital in aligning stakeholders and advancing shared industry goals.

“At NNPC Limited, we are deploying new infrastructure and revamping existing assets to support strategic alliances.

“Our co-investments across upstream, midstream, and downstream operations reflect our belief that shared growth is sustainable growth,” he maintained.

He urged industry leaders to view sustainability as a catalyst, not a constraint, and to see it as driving profitability, innovation, and long-term value.

Dagazau reaffirmed NNPC Ltd’s commitment to building an inclusive, secure, and sustainable energy future, calling for purpose-driven innovation and collaboration.

Also speaking, Governor Babajide Sanwo-Olu of Lagos State described the OTL Africa Downstream Energy Week as the continent’s foremost platform for driving energy dialogue, policy reform, and investment.

Represented by the commissioner for energy resources, Abiodun Ogunleye, Sanwo-Olu said Lagos had hosted nearly every edition of the event over the years, reinforcing the city’s status as the energy and logistics capital of sub-Saharan Africa.

He commended the OTL Africa platform for its impact, noting that it had influenced major policy shifts and encouraged private-sector participation across the continent.

The governor cited recent multibillion-naira investments by Mainland Oil and Gas and long-term partnerships with Rainoil Ltd as examples of how engagement through the forum continued to stimulate growth.

He added that global technology firms such as Dover Fuelling Solutions had leveraged the platform to introduce automation and digital tools, transforming Africa’s fuel retailing sector.

The governor reiterated Lagos State’s commitment to clean energy and inclusive growth through initiatives such as the Lagos Electricity Policy and Energy Transition Plan, which promote private participation and sustainable development.

Mr Sanwo-Olu welcomed delegates and investors, expressing optimism that the forum would unlock new opportunities for Nigeria and the continent.

Chief Executive Officer, OTL Downstream Development in Africa Ltd/Gte, Mrs Joycee Akabogu, said the conference may be a spark of new opportunities for Lagos, Nigeria and for Africa.

According to her, the gathering brings to memory the strength of their community, a community driven by innovation, resilience, and a shared belief that Nigeria, and indeed Africa, can and must define its own energy future.

She said: “This year’s theme, ‘Energy Sustainability Growth Beyond Boundaries and Competition,’ captured that vision perfectly. According to her, this is because for Africa, sustainability is not a choice between one energy source and another.

“It is about creating balance in our energy mix, a mix that includes oil, gas, renewables, and emerging technologies, all working together to power growth, expand access, and uplift lives.

“Our challenge is not simply to supply energy, but to make it affordable, reliable, and accessible to every community. To make energy an instrument of progress and privilege.

“And nowhere is this more visible than in the downstream spectrum. This is where energy meets the people, where policy becomes reality, where the effectiveness of governance, good or bad, is experienced every single day, at the forefront, in transportation, in power availability, and in the productivity of our economy.

“When the downstream works well, citizens feel it. When it doesn’t, the nation feels it too. That is why this sector must continue to stay at the centre of Africa’s growth strategy.”