Nigeria has made significant progress in attracting major investments in its oil and gas sector, securing three out of Africa’s four Final Investment Decisions (FIDs) in 2024, totaling over $5.5 billion.
Olu Verheijen, Special Adviser to the President on Energy, disclosed this at the Nigeria International Energy Summit (NIES) 2025, highlighting Nigeria’s emergence as a key destination for deep offshore oil and gas investments. She attributed this success to critical reforms, including three presidential directives issued in February 2024, aimed at eliminating barriers to investment.
Among the secured investments are the Ubeta FID by Total JV and Shell’s Bonga North FID, showcasing the effectiveness of these policy changes. Verheijen noted that additional FIDs are expected in 2025, further strengthening investor confidence.
Despite struggling to attract new oil and gas investments over the past decade—while global investors diverted approximately $80 billion elsewhere—Nigeria has improved its investment climate by enhancing regulatory stability and security in oil-producing regions. This has resulted in a 500,000 barrels per day (bpd) increase in oil production since President Bola Tinubu took office.
The government is focused on restoring oil production to 2.06 million bpd in the short term and reaching 4 million bpd by 2030. Key strategies include expanding deepwater operations, securing additional FIDs, and maintaining competitiveness among 14 rival investment destinations.
Verheijen also highlighted five major asset acquisitions completed in 2024, which integrated local expertise with international oil companies (IOCs) focusing on deepwater projects. This realignment is expected to drive long-term production growth.
Beyond oil and gas, Nigeria is strengthening its influence in Africa’s energy sector through increased refining capacity, electrification efforts, and power sector reforms. A major initiative, the Presidential Metering Initiative (PMI), aims to deploy seven million smart meters, improving revenue collection for electricity distribution companies (DisCos) and enhancing service delivery.
Additionally, the government is addressing outstanding debts to gas suppliers and power generation companies while implementing cost-reflective tariffs with targeted subsidies. These reforms are designed to create a stable, investment-friendly power sector that will drive industrialization and economic growth.
Verheijen emphasized that by leveraging its vast energy resources for industrial development and strategic exports, Nigeria is laying the groundwork for sustainable job creation, economic diversification, and long-term prosperity.
Looking ahead, Nigeria is set to secure more FIDs in 2025 while introducing new fiscal incentives, such as VAT waivers and tax credits for deepwater projects. These measures are expected to boost employment, foreign exchange earnings, and overall energy security.