Nigeria Reclaims Energy Investment Lead In Africa

Nigeria has re-established itself as Africa’s foremost destination for oil and gas investment, driven by sweeping reforms introduced under President Bola Ahmed Tinubu since 2023, according to a recent government review of the sector.

The report highlights a sharp recovery in investor confidence, with Nigeria’s share of upstream Final Investment Decisions (FIDs) rising from 4 per cent to around 40 per cent between 2024 and 2025. This places the country ahead of key continental producers such as Angola, Algeria, and Mozambique.

Central to this shift is a series of policy measures aimed at improving fiscal competitiveness and regulatory clarity. Reforms have clarified the mandates of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, while introducing tax incentives for deepwater and gas projects, alongside broader cost-efficiency initiatives.

These changes have accelerated project approvals and improved investment economics, unlocking more than $10bn in new upstream FIDs. Key developments include offshore and gas projects such as Bonga North, Ubeta, and Iseni, with a broader pipeline estimated at over $50bn.
The reforms have also driven structural changes in asset ownership. International oil companies—including Shell, ExxonMobil, Eni, and Equinor – have divested approximately $4bn in onshore and shallow-water assets. These have been acquired by local firms such as Seplat Energy and Oando, signalling a shift towards indigenous operators.

Crude production has responded, rising from 1.2 million barrels per day in 2023 to about 1.6 million barrels per day in 2025, with longer-term targets set at 3 million barrels per day.
Gas has become a strategic priority, with utilisation increasing by roughly 40 per cent. Investment across LNG, non-associated gas, and industrial applications is strengthening Nigeria’s position in global gas markets while supporting domestic growth.

Downstream, refining capacity has expanded significantly, boosting petrol and diesel output and improving fuel availability. Meanwhile, power sector reforms—particularly efforts to resolve legacy debt—are beginning to restore financial stability.

Sustaining this momentum will depend on consistent policy execution, improved security, and the operational performance of indigenous firms.