Structuring a $6 Billion Pipeline PPP to Modernize Nigeria’s Oil & Gas Infrastructure
CPCS supported Nigeria’s national oil company in structuring a large‑scale public‑private partnership (PPP) to modernize the country’s pipeline and storage depot network enhancing efficiency, sustainability, and long‑term energy security.
Enabling a shift toward cleaner and more secure transport
Nigeria’s crude and refined petroleum products have long relied on road transport, creating significant logistical bottlenecks, safety concerns, and environmental pressures. To address these challenges, the Federal Government launched a major investment programme valued at over USD 6 billion to rehabilitate and commercialize 3,660 kilometres of pipelines and associated storage depots nationwide.
The goal: transition from truck‑based transport to a safer, more cost‑efficient, and climate‑aligned pipeline system, while supporting the revival of domestic refining and advancing midstream sector reforms.
CPCS was engaged to structure this transformation under a Build‑Operate‑Transfer (BOT) model, ensuring the project would be technically sound, commercially viable, and attractive to private investors.
From technical validation to a bankable structure
CPCS prepared the project’s Outline Business Case (OBC), offering a comprehensive evaluation of the technical, financial, legal, and market foundations required for a successful PPP.
Working with engineering partners Zutari, the CPCS team validated prior technical due diligence, including Front-End Engineering Design (FEED) studies and asset condition assessments across the 3,660 km network. Capital and operating costs were confirmed, and the asset register was reviewed to ensure readiness for transaction launch.
CPCS conducted a robust market assessment and examined shipper demand, commodity flows, and long‑term revenue potential. Financial modelling and value‑for‑money analysis highlighted the benefits of implementing the investment under a PPP structure, while multiple risk‑allocation scenarios were developed to meet investor expectations.
Legal, environmental, social, financial, and accounting due diligence strengthened the project’s integrity and improved bankability.
Delivering full transaction advisory support
Beyond structuring, CPCS guided the client throughout the procurement process. The mandate included:
- Preparing tender documents including the RFP, BOT Agreement, and implementation agreements
- Conducting legal due diligence on prospective bidders
- Managing the competitive procurement process
- Evaluating proposals and identifying preferred bidders
- Supporting negotiations through to commercial close
The bid process was carried out successfully with the identification of Preferred Bidders for each lot of assets in 2023 and reached commercial close in 2024.
Through workshops and continuous engagement, CPCS aligned institutional objectives with market requirements and ensured transparency and discipline throughout the transaction.
Strengthening infrastructure and advancing sector reform
This initiative marks a pivotal step in modernizing Nigeria’s midstream oil and gas infrastructure. By structuring a transparent and commercially robust PPP, the project supports improved operational performance, reduced environmental impacts, and greater national energy security.
It also reinforces the government’s broader goal of sector commercialization and reform, while mobilizing private capital for large‑scale infrastructure investment.
Planning a major infrastructure PPP?
CPCS provides end‑to‑end transaction advisory support from structuring to close.
Reach out to our team to learn more communication@cpcs.ca
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