Nigeria Poised for Investment Boom in Energy Sector
3 min read
Nigeria is on track to secure a surge in Final Investment Decisions (FIDs) this year, reinforcing investor confidence and driving sustained economic growth in its energy sector, according to Olu Verheijen, Special Adviser on Energy to President Bola Tinubu.
Speaking at the Nigeria International Energy Summit 2025, Verheijen highlighted that Nigeria secured three out of Africa’s four FIDs last year, valued at over $5.5 billion, underscoring the country’s emergence as a premier destination for deep offshore oil and gas investments.
Investment Climate Boosted by Key Reforms
Verheijen attributed the improved investment climate to strategic reforms, including three presidential directives issued in February 2024 aimed at removing barriers to new investments. These initiatives attracted major commitments such as the Ubeta FID secured through a Total joint venture and Shell’s approval of the Bonga North FID.
“The year 2024 marked a turning point in our energy landscape, with Nigeria securing three out of Africa’s four Final Investment Decisions, valued at over $5.5bn,” Verheijen said. “Our nation solidified its position as a premier destination for deep offshore oil and gas investments, approved its first deepwater FID in over a decade, facilitated five major asset acquisitions, revived two domestic refineries, and commenced petrol production at Africa’s largest refinery.”
Looking ahead, Verheijen forecasted more FIDs in 2025, bolstered by five significant asset acquisitions completed in 2024. These acquisitions integrated operators with deep local expertise, ensuring more efficient resource extraction and accelerating production growth.
Overcoming Investment Challenges
Nigeria has faced challenges attracting substantial new oil and gas investments over the past decade, with global investors directing about $80 billion to other regions due to concerns over regulatory stability and an uncompetitive fiscal framework.
Verheijen stated that the Tinubu administration is reversing this trend through enhanced security measures in oil-producing regions and a data-driven security framework developed in partnership with operators and security agencies. These efforts have led to a 500,000 barrels per day increase in oil production since the administration took office.
With a goal of restoring oil production to 2.06 million barrels per day in the short term and reaching four million barrels per day by 2030, the government is focused on attracting more FIDs, expanding deepwater operations, and maintaining Nigeria’s competitive edge among 14 rival oil and gas investment destinations.
Strategic Realignment and Economic Growth
Verheijen highlighted the strategic importance of the five major asset acquisitions, which allow international oil companies to concentrate on capital-intensive deepwater operations while local operators leverage their expertise in onshore and shallow water projects. “This strategic realignment is expected to drive sustained production growth, ensuring a steady and long-term increase in output,” she explained.
Beyond oil and gas, Nigeria is playing a growing role in shaping Africa’s energy landscape through domestic refining expansion, improved electrification, and power sector reforms. Verheijen spotlighted the Presidential Metering Initiative, designed to deploy seven million smart meters to eliminate estimated billing inefficiencies and enhance revenue collection by electricity distribution companies.
Power Sector Reforms and Regional Impact
The administration is also addressing outstanding debts to gas suppliers and power generation companies while implementing cost-reflective tariffs supported by targeted subsidies. Verheijen emphasised that these measures are crucial for creating a financially stable and investment-friendly power sector capable of driving 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,” Verheijen asserted.
She concluded by emphasising that Nigeria’s success in securing significant investments, expanding domestic refining, and enhancing electrification is not only a national achievement but also pivotal for regional energy security, intra-African trade, and industrialisation.
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