In 2024, Nigeria saw an impressive increase in energy investments, drawing $6.7 billion from a variety of sectors. With the oil and gas industry at the forefront, this large inflow of cash marks a turning point for the country’s energy landscape.
According to the office of the Special Adviser to the President on Energy’s “Presidency Energy Sector Wrap-Up 2024,” The Special Adviser to the President on Energy, Olu Verheijen, $5.5 billion was allocated to oil and gas projects. This includes Shell Nigeria Exploration and Production Company’s (SNEPCO) historic $5 billion investment in the Bonga North Deep Offshore Project. This project is significant since it is the first greenfield Deep Offshore development in more than ten years and is expected to increase Nigeria’s oil production capacity by about 110,000 barrels per day.
The year 2024 witnessed a flurry of significant acquisitions within the oil and gas sector. Renaissance Consortium’s acquisition of Shell Petroleum Development Company Limited for $1.3 billion, Seplat Energy Plc’s purchase of Mobil Producing Nigeria Unlimited from ExxonMobil for an equal amount, and Chappal Energies’ acquisitions of Equinor Nigeria Energy Company and a stake in SPDC JV licenses all underscore the growing interest of both domestic and international players in the Nigerian market.
The government showed that it was committed to broadening the energy mix beyond oil and gas. A $400 million investment was given to the Presidential Metering Initiative (PMI), a significant government intervention that aims to improve Nigerians’ access to, affordability of, and dependability of on-grid power. Additionally, $700 million went to projects for clean cooking and clean mobility, which reflects a rising focus on sustainable energy solutions.
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“Our goal, working with all industry stakeholders across public and private sectors, is to improve the availability, affordability, and reliability of on-grid power,” stated Olu Verheijen, Special Adviser to the President on Energy. This commitment to collaboration and stakeholder engagement underscores the government’s proactive approach to navigating the evolving energy landscape.
The report highlighted Nigeria’s position as a frontrunner in African energy investment, attracting four of the five upstream investments made on the continent in 2024. This achievement reflects the bold reforms undertaken by the government to enhance the country’s investment competitiveness within the oil and gas sector.
Looking ahead, the outlook for Nigeria’s energy sector remains promising. The report projected that the country is poised to attract over $5 billion in gas investments by 2029, while the potential for over $30 billion in Deep Offshore investments by the same year presents exciting opportunities for further growth and development.
