Nigeria’s oil and gas sector is capturing global attention, as over $1 billion in investment has already been secured this year, according to Olu Verheijen, special adviser to President Bola Tinubu on energy. Speaking passionately at the African Energy Week in Cape Town, South Africa, Verheijen expressed how recent regulatory reforms are driving real change and opening doors for both local and international investors across every segment of the industry.
She emphasised that Nigeria’s progress builds on the Petroleum Industry Act (PIA), signed into law in 2021 after two decades of advocacy. Today, the administration is pushing forward with a sense of urgency to transform Nigeria into a leading energy producer, both in traditional oil and gas as well as renewables.
Verheijen revealed that by mid-2025, Nigeria anticipates Final Investment Decisions (FIDs) on multiple large-scale projects, including a landmark multimillion deep water exploration initiative the first in over a decade. “We’re rewriting the investment narrative,” Verheijen said, “and we’re eager to build a legacy that positions Nigeria at the forefront of global energy.”
Key Points on Nigeria’s Oil and Gas Transformation:
- Regulatory Reforms: The Tinubu administration has introduced measures to make Nigeria more competitive, reducing costs and accelerating processes within the oil and gas sector.
- Expedited Approvals: Major investment decisions and regulatory approvals are progressing quickly, providing a positive investment environment for foreign stakeholders.
- Economic Boost: With these investments, Nigeria anticipates not only an increase in foreign exchange but also the creation of tens of thousands of jobs, enhanced tax revenues, and greater macroeconomic stability.
Since May 2023, reforms including tax breaks for deep offshore projects and VAT exemptions on energy products such as LPG and CNG are helping to attract investors. These initiatives, underpinned by three new presidential directives issued in February 2024, reflect Nigeria’s strategic push to strengthen its economy and bolster its role as a global energy powerhouse.