Nigeria Emerges as Africa’s Top Destination for Oil and Gas Investment in 2024

According to Wood Mackenzie, the country accounted for three out of four FIDs made by global oil and gas majors, reflecting a robust outlook for the industry.

Nigeria has solidified its position as Africa’s leading destination for upstream oil and gas investment in 2024, securing $13.5 billion in Final Investment Decisions (FIDs). According to Wood Mackenzie, the country accounted for three out of four FIDs made by global oil and gas majors, reflecting a robust outlook for the industry.

Key Investments in Nigeria’s Oil and Gas Sector

The major FIDs announced in Nigeria include:

• Shell’s $122 million investment in the Iseni Gas Project
• TotalEnergies’ $566 million commitment to the Ubeta Gas Project
• Shell’s approval of the Bonga North Tranche 1 project, one of the country’s largest deepwater projects

These investments underscore Nigeria’s continued efforts to harness its hydrocarbon resources, supported by favorable policies and strong partnerships with global players.

Government Policies Driving Investment

In 2024, Nigeria introduced a series of pro-investment measures to create an enabling environment for oil and gas investors. These include:

• New tax incentives to attract up to $10 billion in natural gas investments. This package includes tax relief for gas investors, reductions in corporate income tax, and extended capital allowance benefits, particularly for deepwater gas projects.
• A Presidential Directive on Local Content Compliance that aims to address challenges such as high operating costs compared to global markets, further stimulating investments.
• A Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, aimed at reducing the time taken to award contracts for projects in the oil and gas sector.

These measures are designed to make Nigeria a more attractive investment hub, thereby driving continued growth and investment in its energy sector.

Licensing Round and Future Investment Prospects

In addition to the above measures, Nigeria launched its 2024 oil and gas licensing round, offering 19 exploration blocks to investors. This reinforces Nigeria’s commitment to continued collaboration with both local and international partners. The expected future investments include a potential $750 million commitment by TotalEnergies to the Ima Shallow Gas Project in 2025, further fueling optimism about the sector’s prospects.

Boosting Energy Access and Socioeconomic Development

Despite the positive investment outlook, Nigeria still faces significant energy access challenges, with 45% of its population lacking access to electricity and reliable energy. The African Energy Chamber (AEC) recognizes that these investments and policies are essential to advancing Nigeria’s universal energy access goals and its broader socioeconomic development agenda.

NJ Ayuk, Executive Chairman of the AEC, commented, “Nigeria continues to set a benchmark for investor-friendly policies, leveraging its hydrocarbon potential and government initiatives to drive sustainable development.” He further praised President Tinubu, Special Adviser Olu Arowolo Verheijen, and other stakeholders for fostering a conducive environment for attracting global investments and contributing to the nation’s economic growth and energy poverty eradication.

The Path to Sustainable Growth and Regional Stability

These developments come at a crucial time for Nigeria, as its role in the global energy market continues to grow. The country’s upstream sector is expected to play a key role in supporting global energy stability and advancing sustainable development across Africa.

The African Energy Week: Invest in African Energy 2025 conference, scheduled for 29 September to 3 October, will feature key Nigerian policymakers and energy stakeholders, providing a platform to showcase the country’s growing oil and gas opportunities to global investors.

With Nigeria’s proactive energy policies and ongoing commitment to innovation, the country is poised to continue attracting substantial investment, creating jobs, and fostering growth, all while driving forward its energy access and economic development goals.