Nigeria has made significant strides in attracting major investments in its oil and gas sector, securing three out of Africa’s four Final Investment Decisions (FIDs) in 2024, valued at over $5.5 billion.
Special adviser to the President on Energy, Olu Verheijen, who made this known also said the federal government is expecting to boost crude oil production to four million barrels per day by 2030.
Speaking at the Nigeria International Energy Summit (NIES) 2025, Verheijen highlighted that Nigeria secured three out of Africa’s four FIDs last year, valued at over $5.5 billion, noting that this demonstrated Nigeria’s position as a leading destination for deep offshore oil and gas investments.
She added that the country’s improved investment climate was driven by key reforms, including three presidential directives issued in February 2024 to remove barriers to new investments.
This achievement underscores Nigeria’s position as a leading destination for deep offshore oil and gas investments.
According to Verheijen highlighted that these investments, including the Ubeta FID by Total JV and Shell’s Bonga North FID, demonstrate the effectiveness of recent reforms aimed at improving the investment climate. These reforms include three presidential directives issued in February 2024 to enhance regulatory stability and competitiveness.
These measures helped attract major investment commitments such as the Ubeta FID secured through a Total JV and Shell’s approval of the Bonga North FID.
“Looking ahead, additional FIDs are anticipated in 2025, further reinforcing investor confidence,” Verheijen said.
Nigeria has struggled to attract significant new oil and gas investments in the past decade, with global investors directing about $80 billion elsewhere.
Verheijen attributed this to concerns over regulatory stability and an uncompetitive fiscal framework.
However, she said President Tinubu’s administration had taken steps to change this narrative by enhancing security in oil-producing regions and implementing a data-driven security framework in collaboration with operators and security agencies.
This led to a 500,000 barrels per day (bpd) increase in oil production since the administration took office.
With a target of restoring oil production to 2.06 million bpd in the near term and reaching 4 million bpd by 2030, the government’s focus remains on attracting more FIDs, expanding deepwater operations, and ensuring Nigeria remains competitive among 14 rival oil and gas investment destinations.
Verheijen also pointed to five major asset acquisitions completed in 2024 as key to boosting Nigeria’s oil production. She said these transactions integrated operators with local expertise while allowing international oil companies (IOCs) to focus on deepwater operations, where their capital and technical capacity are crucial.
“This strategic realignment is expected to drive sustained production growth, ensuring a steady and long-term increase in output,” she said.
Beyond oil and gas, Verheijen stressed Nigeria’s growing influence in shaping Africa’s energy landscape. She highlighted the expansion of domestic refining capacity, improved electrification efforts, and reforms aimed at enhancing liquidity in the power sector.
“A key initiative is the Presidential Metering Initiative (PMI), which consolidates all metering programs into a unified framework, targeting the deployment of seven million smart meters. This initiative is designed to eliminate the inefficiencies of estimated billing, enhance revenue collection by electricity distribution companies (DisCos), and significantly improve service delivery,” Verheijen added.
She also said that the government is addressing outstanding debts owed to gas suppliers and power generation companies while implementing cost-reflective tariffs with targeted subsidies.
Verheijen said these measures were crucial to ensuring a financially stable and investment-friendly power sector that could drive industrialisation and economic growth.
“A more energy-secure Africa translates into a more economically resilient Africa. By leveraging our vast energy resources for industrial development and strategic exports, we are laying the foundation for sustainable job creation, economic diversification, and long-term prosperity,” she said.
Looking ahead, Nigeria is set to secure more FIDs in 2025, further bolstering investor confidence. The federal government also aims to increase oil production to 4 million barrels per day by 2030, supported by new fiscal incentives such as VAT waivers and tax credits for deepwater projects. These measures are expected to create jobs, boost foreign exchange earnings, and enhance energy security.
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