Nigeria has emerged as Africa’s leading destination for upstream oil and gas investment, solidifying its position through significant policy reforms and strategic partnerships.
According to market intelligence from Wood Mackenzie, the country secured three out of four Final Investment Decisions (FIDs) announced by global oil and gas majors in 2024, with investments totalling $13.5 billion. These FIDs included Shell’s $122 million Iseni Gas Project, TotalEnergies’ $566 million Ubeta Gas Project, and Shell’s Bonga North Tranche 1 project, reflecting Nigeria’s proactive measures to unlock its hydrocarbon potential.
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The African Energy Chamber (AEC) has commended Nigeria for its investor-friendly policies, which have been instrumental in driving growth in the energy sector. Key reforms introduced in 2024 include tax incentives designed to attract $10 billion in natural gas investments, offering significant relief to gas investors and extending capital allowances for deepwater projects. Additionally, the Presidential Directives on Local Content Compliance and Petroleum Sector Contracting have streamlined operations, reducing costs and timelines for awarding oil and gas contracts, further enhancing Nigeria’s appeal to international investors.
Nigeria’s commitment to fostering collaboration is evident in its 2024 oil and gas licensing round, which offered 19 exploration blocks, signalling an open-door policy for global partnerships. These efforts are expected to lead to additional FIDs, including TotalEnergies’ anticipated $750 million investment in the Ima Shallow Gas Project in 2025. Such initiatives are vital as Nigeria strives to address its energy access challenges, with 45% of its population still lacking reliable electricity. By leveraging its vast hydrocarbon resources and implementing supportive policies, the country is setting a benchmark for sustainable development in the energy sector.
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The African Energy Week 2025, scheduled from 29 September to 3 October, will further highlight Nigeria’s burgeoning oil and gas industry. With participation from key policymakers and energy stakeholders, the event aims to showcase the country’s investment opportunities and reinforce its role as a leader in driving energy security and economic growth in Africa.
