Due to extensive changes implemented by President Bola Tinubu’s administration, Nigeria has become Africa’s top energy investment destination over the last two years, according to a recent government report.
According to the paper our correspondent got on Monday, which detailed a three-year evaluation of Nigeria’s energy sector reforms from 2023 to 2026, the nation saw a spike in capital inflows, reversing years of decline brought on by underinvestment and policy uncertainty.
The report claims that between 2024 and 2025, Nigeria’s share of upstream Final Investment Decisions in Africa increased dramatically from 4% to almost 40%, putting the nation ahead of more established rivals on the region.According to the report, which was approved by the President and credited to Olu Verheijen’s office as the Special Advisor to the President on Energy,Thanks to President Bola Ahmed Tinubu’s energy reforms, Nigeria has emerged as Africa’s top capital destination in the past two years. Nigeria reversed years of decline and reemerged as Africa’s top oil capital destination at a time when global upstream investment was tightening.Why my tenant used a knife to assault her kid in Lagos 0:00 or 0:00 Landlord Thus, this occurred (EP 392). Reviews: Sisi Alagbo issues a video apology0.20 to 1:01 Continue to Watch ItNigeria’s appeal to foreign oil corporations in capital-intensive long-cycle projects has been restored as a result of a fresh pipeline of over $10 billion in final investment decisions, particularly in deep offshore and integrated gas.
The reforms, which were based on a number of executive orders and policy directives, were aimed at boosting regulatory clarity, expediting project approvals, and improving fiscal terms.
Directives outlining the functions of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, as well as tax breaks aimed at deep offshore oil production and gas development, were among the major actions.
Additional actions included VAT adjustments, cost-efficiency improvements, and regulations meant to protect public coffers while boosting investment profits.
According to the research, these changes greatly shortened contracting schedules and enhanced cost structures, which helped to rebuild investor trust in the industry.”From the beginning, the President established a clear direction: to restore credibility, unlock investment, and reposition energy as a driver of growth, jobs, and prosperity,” the statement read. This report’s recommendations are based on a market-oriented, fiscally responsible, and rigorous execution attitude.
The completion of almost $4 billion in divestitures by foreign oil companies, which transferred onshore and shallow-water assets to domestic companies, was a significant result of the policy change.
Transactions involving Shell, ExxonMobil, Agip, and Equinor—now run by regional firms like Renaissance, Seplat, Oando, and Chappal—were among them.
“A purposeful program of divestments has enabled the transfer of onshore and shallow-water assets to capable indigenous independents, unlocking record growth in onshore production and creating a more balanced, performance-driven asset ownership structure,” the study states.
Nigeria’s oil production figures, which increased by around 400,000 barrels per day from roughly 1.2 million barrels per day in 2023 to roughly 1.6 million barrels per day in 2025—the highest onshore production level in 20 years—reflect the impact of the reforms.A long-term production goal of three million barrels per day, fueled by increased investments and better operational conditions, was also forecasted in the report.After over ten years of stagnation, the industry has seen a revival in capital inflows in addition to asset transfers, with over $10 billion in upstream investments. The $550 million Ubeta gas project, the $100 million Iseni gas project, and the $5 billion Bonga North deepwater development are major initiatives propelling this recovery.It further stated that with over $50 billion in anticipated upstream projects, a strong pipeline of future investments is already taking shape.Bonga South West, Zaba Zaba, Owowo, Nsiko, Preowei, Bosi, Erha, and Usan are a few of these significant projects. According to the research, when combined, they form a robust pipeline that can maintain long-term industry stability and production growth.Utilization in the gas category increased by 40%, from 2.33 billion standard cubic feet per day in 2023 to 3.25 billion standard cubic feet per day in 2026.According to the research, gas is now a key component of Nigeria’s economic strategy, serving as both a transition fuel and a catalyst for industrialization.Nigerian inventors are invited to apply for the €827,000 digital AI competition by Related News UK. CashAfrica collaborates with ChamsFor Nigeria’s wave of contactless payments, a US-based Nigerian researcher advocates for data-driven e-waste compliance.Investment in petrochemicals, new sustainable energy alternatives, and non-associated gas LNG has increased due to the implementation of appropriate fiscal incentives and regulatory clarity. Gas is now securely positioned as a foundation for industrialization, export growth, and the generation of domestic value, in addition to serving as a transition fuel.
While export volumes increased by 39%, domestic gas supply also showed consistent growth, highlighting the growing significance of gas in Nigeria’s industrial strategy and energy mix.
The paper emphasized how gas projects, such as the $2 billion HI Non-Associated Gas Project, are boosting local industrialization and establishing Nigeria as a major participant in international gas markets.
Local refining capacity has significantly increased in the downstream segment, with Automotive Gas Oil output reaching 17.16 million liters per day and Premium Motor Spirit production increasing from nearly zero levels in 2023 to 48.2 million liters per day in 2026.
The study made clear that the rise in regional refining has
helped eliminate gas lines nationwide throughout the previous three years.
“Local refining capacity has more than doubled, with significant increases in PMS and AGO production,” the statement read. As a result, fuel is now more readily available and there are no longer any lines, improving economic stability and energy security.
Nigeria’s competitiveness in Africa’s energy market has greatly increased as a result of these measures taken together.
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