Nigeria has emerged as Africa’s top destination for oil and gas investment, attracting a massive $13.5 billion in new projects in 2024. Despite economic challenges like inflation and currency instability, the country has secured three out of four major Final Investment Decisions (FIDs) announced in Africa last year.
Big Investments in Nigeria’s Oil and Gas Sector
A recent report by market intelligence firm Wood Mackenzie highlights that Nigeria is leading the way in upstream oil and gas investments. Three major projects contributed to the $13.5 billion investment boost:
- Iseni Gas Project ($122 million): Led by Shell and its partners, this project will supply gas to the Dangote Fertiliser and Petrochemical Plant.
- Ubeta Gas Project ($566 million): A joint investment by NNPC and TotalEnergies, this project will deliver 350 million cubic feet of gas per day.
- Bonga North Deep-Water Project ($5 billion): Shell’s major offshore oil project, expected to produce 110,000 barrels of oil per day.
What These Investments Mean for Nigeria
These projects are a major step in supporting Nigeria’s “Decade of Gas” initiative, aimed at increasing domestic gas supply, boosting electricity generation, and creating jobs.
- More Gas for Local Use: The Iseni project will supply 100 million cubic feet of gas daily to Dangote’s fertiliser plant, supporting agriculture and industry.
- Increased Oil Production: The Bonga North project will add 350 million barrels of crude oil to Nigeria’s reserves.
- Boosting the Economy: The investments will create thousands of jobs and generate billions in revenue for the country.
Government Support and Global Partnerships
President Bola Ahmed Tinubu has welcomed these investments, crediting his administration’s policies for creating a business-friendly environment. The Nigerian government has introduced tax incentives, reduced contract approval timelines, and launched new oil licensing rounds to attract investors.
The U.S. government has also shown interest in Nigeria’s energy sector, strengthening ties through the U.S.-Nigeria Strategic Energy Dialogue.
Future Investments and Energy Access
With 45% of Nigerians lacking electricity, these projects are a step towards improving energy access. Experts predict even more investments in 2025, including TotalEnergies’ expected $750 million Ima Shallow Gas Project.
According to the African Energy Chamber, Nigeria is setting a benchmark for investor-friendly policies and remains a key player in global energy markets.
By securing these massive investments, Nigeria is not only boosting its oil and gas sector but also strengthening its position as Africa’s energy powerhouse.