Nigeria is targeting $10 billion in new oil and gas investments over the next 12-18 months through a series of strategic reforms aimed at improving the investment climate and governance in the sector.
These initiatives will be showcased at the African Energy Week: Invest in African Energy 2024 conference, where the Invest in Nigeria Energies roundtable will highlight opportunities for investors and project developers to engage with Africa’s largest crude oil producer.
The session will focus on new policy directives, fiscal incentives, and investment allowances that are reshaping Nigeria’s energy landscape.
The roundtable will bring together Nigerian policymakers, industry regulators, and representatives from international oil companies like ExxonMobil and Chevron to discuss the latest developments in the sector. Key speakers include Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), and Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. This platform provides a unique opportunity to explore the evolving regulatory environment and investment prospects in Nigeria’s oil and gas sector.
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Nigeria’s Federal Government has introduced several new policies alongside the ongoing implementation of the Petroleum Industry Act to revitalise the energy sector. These reforms are designed to deliver a competitive internal rate of return for oil and gas projects, attracting significant new investments. Measures include raising approval thresholds for Production Sharing Contracts (PSCs) and Joint Operating Agreements (JOAs) to $10 million and extending contract durations to streamline processes and reduce project timelines, accelerating production towards Nigeria’s target of 4 million barrels per day.
Moreover, the country is also focusing on expanding investments in gas monetisation, refining, and infrastructure to boost gas supply, power access, and industrialisation. Key gas-focused reforms, such as tax credits for non-associated gas projects and deductions for qualifying gas utilisation equipment, have already sparked new developments. In 2024, TotalEnergies and the Nigerian National Petroleum Corporation committed $550 million to develop the Ubeta gas field, which will supply gas to the Nigeria LNG liquefaction plant, marking a significant step towards low-cost, low-emission energy projects.
Deregulation of Nigeria’s downstream sector is transforming the market, enhancing fuel availability, reducing government subsidies, and improving efficiencies. The Dangote Refinery, Africa’s largest, began operations in late 2023 with a capacity of 650,000 barrels per day, positioning Nigeria as a net exporter of refined petroleum products. The refinery’s success is crucial for stabilising domestic fuel prices, reducing import dependency, and increasing foreign exchange earnings, further supporting Nigeria’s energy sector growth.
Looking ahead, Nigeria’s policy reforms are unlocking new investment opportunities across the energy value chain, from refining capacity and petrochemical complexes to gas processing and storage facilities. By fostering a more favourable investment environment, Nigeria aims to solidify its position as a regional energy powerhouse, driving growth through strategic investments in oil, gas, and renewable energy sectors.
