Nigeria aims for increased energy investments in 2025 after securing $5.5bn in Final Investment Decisions, boosting oil and gas growth
Nigeria is set to attract a higher number of Final Investment Decisions (FIDs) in 2025, reinforcing investor confidence and driving long-term economic growth in the country’s energy sector.
This was revealed by Olu Verheijen, Special Adviser on Energy to President Bola Tinubu, at the Nigeria International Energy Summit 2025 on Monday.
She highlighted Nigeria’s impressive performance in 2024, securing three out of Africa’s four FIDs, valued at over $5.5bn.
Verheijen noted that these investments solidified Nigeria’s position as a leading destination for deep offshore oil and gas projects, with the country approving its first deepwater FID in over a decade.
Major commitments like the Ubeta FID through a Total JV and Shell’s approval of the Bonga North FID showcased the growing investor trust in Nigeria’s energy potential.
“The year 2024 marked a turning point in our energy landscape,” Verheijen stated. “Nigeria secured three out of Africa’s four FIDs, valued at over $5.5bn.
We revived two domestic refineries and commenced petrol production at Africa’s largest refinery.”
The surge in investments is largely attributed to key reforms introduced by President Tinubu’s administration.
Three presidential directives issued in February 2024 removed longstanding barriers to new investments, improving the investment climate.
The government also enhanced security in oil-producing regions and implemented a data-driven security framework in collaboration with operators and security agencies.
This led to a 500,000 barrels per day (bpd) increase in oil production since Tinubu’s administration took office.
Looking ahead, the government aims to restore oil production to 2.06 million bpd in the near term and reach four million bpd by 2030, ensuring Nigeria remains competitive among 14 rival oil and gas investment destinations.
Verheijen pointed to five major asset acquisitions completed in 2024 as key drivers for accelerating production growth.
These transactions strategically integrated local operators with international oil companies, allowing the latter to focus on deepwater operations where their capital and technical capacity are most effective.
“This strategic realignment is expected to drive sustained production growth, ensuring a steady and long-term increase in output,” she explained.
Beyond oil and gas, Nigeria is expanding its influence in Africa’s energy landscape through increased domestic refining capacity and power sector reforms.
The Presidential Metering Initiative aims to deploy seven million smart meters, eliminating estimated billing and improving revenue collection for electricity distribution companies.
Verheijen also highlighted the government’s efforts to clear outstanding debts owed to gas suppliers and power generation companies while implementing cost-reflective tariffs with targeted subsidies.
“A more energy-secure Africa translates into a more economically resilient Africa,” she said. “By leveraging our vast energy resources for industrial development and strategic exports, we are laying the foundation for sustainable job creation, economic diversification, and long-term prosperity.”
