Nigeria’s energy sector attracted a substantial investment of $6.7 billion in 2024, according to a comprehensive report released Wednesday by the Office of the Special Adviser to the President on Energy, Olu Verheijen.
The “Presidency Energy Sector Wrap-Up 2024” report outlined that $5.5 billion was directed toward the oil and gas industry, with an additional $1.2 billion invested [/b]in federal energy initiatives, alongside clean energy projects. The report emphasizes growing investor confidence in Nigeria's energy market and its potential for future growth.
The report outlined notable transactions in the oil and gas sector, underscoring the robust activity within the industry and increasing interest in Nigerian energy assets. Some of the most significant deals included:
Renaissance Consortium acquired Shell Petroleum Development Company Limited for $1.3 billion, marking a major acquisition in the sector.Seplat Energy Plc completed the $1.3 billion acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil Corporation, strengthening its presence in the country’s energy market.
Chappal Energies completed two major acquisitions, including Equinor Nigeria Energy Company for $1.2 billion and TotalEnergies EP Nigeria’s 10% stake in SPDC JV licenses for $860 million.
Oando Plc secured Nigerian Agip Oil Company in a transaction valued at $800 million, adding to its expanding portfolio.
These acquisitions, according to the report, are expected to fuel local investment and boost onshore production, offering a bright future for indigenous companies in Nigeria's oil and gas sector.
Gas and Deep Offshore Investments
In addition to onshore acquisitions, the report also highlights the growth of gas and deep offshore investments in Nigeria. TotalEnergies and the Nigerian National Petroleum Company (NNPC) Limited invested $550 million in the Ubeta non-associated gas project, aiming to enhance Nigeria’s gas capacity. Meanwhile, SNEPCO made a massive $5 billion commitment to the Bonga North Deep Offshore Project, which is set to produce approximately 110,000 barrels of oil per day, contributing significantly to the country’s offshore production capacity.
The report forecasted that Nigeria is poised to attract $5 billion in gas investments and $30 billion in deep offshore investments by 2029, supporting the country’s energy transition while expanding its energy exports and production capabilities.
Clean Energy and Power Initiatives
The report also detailed investments in clean energy initiatives, with $700 million allocated toward clean mobility and cooking solutions aimed at improving sustainability in Nigeria’s energy sector. Additionally, $400 million was allocated to the Presidential Metering Initiative (PMI), which aims to enhance the availability, affordability, and reliability of power across the country. Verheijen stressed the importance of the PMI in helping Nigeria achieve its energy objectives, stating, “Our focus is to collaborate with stakeholders in both the public and private sectors to strengthen on-grid power for economic growth.”
Verheijen also reaffirmed the government’s commitment to ensuring Nigeria’s energy sector becomes more efficient and self-sustaining. “We are working diligently to optimize Nigeria’s energy resources, foster local ownership, and boost oil and gas production,” she added. The federal government has also reaffirmed its dedication to working closely with both local and international stakeholders to advance the country’s energy sector and build a more prosperous energy future for Nigeria.