With the government anticipating a surge in Final Investment Decisions (FIDs) in 2025, Nigeria is positioning itself as a prime destination for oil and gas investments. This follows a series of strategic reforms to improve investment and address long-standing challenges in the energy sector. The country’s efforts have already begun to yield results, with Nigeria securing three out of Africa’s four FIDs in 2024, valued at over $5.5 billion. These developments underscore the nation’s growing appeal as a hub for deep offshore oil and gas investments, marking a notable turnaround after years of declining investor interest.
Olu Verheijen, the Special Adviser on Energy to President Bola Tinubu, noted these achievements at the Nigeria International Energy Summit 2025. She emphasised that the government’s reforms, including three presidential directives issued in February 2024, have played a pivotal role in removing barriers to new investments. These measures have restored investor confidence and paved the way for major commitments such as the Ubeta FID secured through a Total joint venture and Shell’s approval of the Bonga North FID.
Reforms and security measures drive investor confidence.
Behind the improved investment is the government’s commitment to addressing regulatory instability and enhancing Security in oil-producing regions. Over the past decade, Nigeria struggled to attract solid oil and gas investments, with global Investors directing about $80 billion to other nations. Concerns over regulatory frameworks and security challenges were major challenges. However, the Tinubu administration has taken decisive steps to reverse this trend. The government has implemented a data-driven security framework in collaboration with operators and Security Agencies to improve the safety of oil-producing regions.
These efforts have made notable improvements, with oil production increasing by 500,000 barrels per day since the administration took office. The government’s near-term target is to restore production to 2.06 million barrels per day, aiming to reach four million barrels by 2030. Achieving these targets will require sustained investment in deep water operations and a competitive fiscal framework. Verheijen noted that the administration’s focus on creating a stable and attractive investment environment has driven this progress.
Strategic asset acquisitions to accelerate production growth.
In addition to securing FIDs, Nigeria has completed five major asset acquisitions in 2024, which are expected to be critical in accelerating oil production growth. These transactions have strategically integrated operators with deep local expertise and operational agility, ensuring more efficient resource extraction and management. Furthermore, Nigeria has created a balanced resource development approach, allowing international oil companies to focus on deep water operations, where their capital and technical capacity are most needed. This strategic realignment is expected to drive sustained production growth, ensuring a steady and long-term increase in output.
Integrating local expertise with international capital and Technology has enhanced operational efficiency and strengthened Nigeria’s competitive global oil and gas market player position. Beyond oil and gas, Nigeria is making significant strides in expanding its domestic refining capacity and improving electrification efforts. The revival of two domestic refineries and the commencement of petrol production at Africa’s largest refinery are notable achievements that underscore the country’s commitment to energy self-sufficiency. These developments are expected to reduce the reliance on imported Petroleum products, thereby saving foreign exchange and creating jobs in the downstream sector.
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Lastly, the government is also implementing reforms to enhance liquidity in the power sector. The Presidential Metering Initiative is a key initiative that consolidates all metering programs into a unified framework. This initiative targets the deployment of seven million smart meters, aiming to eliminate the inefficiencies of estimated billing and improve Revenue collection by Electricity distribution companies. The government is working to create a financially stable and investment-friendly power sector by addressing outstanding debts owed to gas suppliers and Power Generation companies.