Nigeria has solidified its position as Africa’s leading hub for upstream oil and gas investment in 2024, according to research by market intelligence firm Wood Mackenzie.
The country accounted for three of the four Final Investment Decisions (FIDs) announced globally by major oil and gas companies, amounting to a remarkable $13.5 billion in investments.
These achievements underscore Nigeria’s sustained efforts to attract foreign direct investment (FDI) in the oil and gas sector through innovative policies and strategic global partnerships.
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), commended Nigeria, stating, “Nigeria continues to set a benchmark for investor-friendly policies, leveraging its hydrocarbon potential and government initiatives to drive sustainable development.”
The FIDs announced within the Nigerian market included Shell’s $122 million investment in the Iseni Gas Project, TotalEnergies’ $566 million commitment to the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project.
The investments reflect Nigeria’s ongoing efforts to unlock its hydrocarbon potential through investor-friendly policies and strategic global partnerships.
“The Chamber commends the Nigerian government for its proactive legislations aimed at attracting foreign investments, streamlining project implementation and reducing bottlenecks.”
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC)
In 2024, Nigeria introduced several initiatives to create a conducive environment for oil and gas investors, including new tax incentives aimed at attracting up to $10 billion in natural gas investments – offering tax relief for gas investors, reducing corporate income tax and extending capital allowance benefits – for deepwater gas projects.
Other policies include the Presidential Directive on Local Content Compliance Requirements, 2024 to address reduction in oil and gas investments caused by high operating costs compared to global markets.
“The Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 reduces time spent to award contracts for oil and gas projects.”
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC)
These policies reflect a strategic effort to address the long-standing challenges of high operating costs and bureaucratic bottlenecks, which have historically hindered investment in Nigeria’s oil and gas sector.
Driving Economic Development
The AEC has lauded the Nigerian government’s efforts to foster an investment-friendly environment, emphasizing the positive impact on socioeconomic development.
“The Chamber commends President Tinubu, Special Adviser to the President on Energy Olu Arowolo Verheijen, and Nigerian energy stakeholders for fostering an environment that attracts global investments, contributing to energy poverty eradication, sustainable development, and global energy market stability.”
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC)
The proactive measures taken by the Nigerian government are expected to generate significant economic benefits, including job creation, increased government revenues, and enhanced local content development.
Nigeria’s success in securing major FIDs in 2024 highlights its growing prominence on the global energy stage.
The upcoming African Energy Week: Invest in African Energy 2025 conference, scheduled from September 29 to October 3, 2025, in Cape Town, South Africa, will provide an opportunity for Nigerian policymakers and energy stakeholders to showcase the country’s burgeoning oil and gas industry.
The conference, which serves as a premier platform for investment promotion, will feature discussions on Nigeria’s investment opportunities and the potential for further collaboration with international partners.
Nigeria’s achievements in 2024 serve as a blueprint for other African countries seeking to attract investments in their oil and gas sectors.
By implementing investor-friendly policies, streamlining processes, and leveraging their hydrocarbon potential, African nations can unlock significant economic benefits and drive sustainable development.
Nigeria’s position as Africa’s leading destination for upstream oil and gas investment in 2024 underscores the importance of strategic policymaking and international collaboration.
With $13.5 billion in FIDs, the country has demonstrated its ability to attract global investments and harness its hydrocarbon potential for economic growth.
As Nigeria continues to implement reforms and pursue sustainable development goals, its oil and gas sector is poised to play a pivotal role in addressing the country’s energy challenges and driving socioeconomic development.
The achievements of 2024 mark a significant milestone in Nigeria’s energy journey and set the stage for continued success in the years to come.
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