Nigeria is poised to bolster its oil and gas sector with several Final Investment Decisions (FIDs) anticipated in 2025, signaling renewed investor confidence. Olu Verheijen, Special Adviser on Energy to President Bola Tinubu, highlighted this development during the Nigeria International Energy Summit (NIES) 2025.
She noted that in 2024, Nigeria secured three out of Africa’s four FIDs, amounting to over $5.5 billion in investments. This results from strategic reforms implemented by the Tinubu administration to enhance the investment climate.
In February 2024, three presidential directives were issued to eliminate barriers hindering new investments. These initiatives have already borne fruit, with significant commitments such as the Ubeta FID through a Total joint venture and Shell’s approval of the Bonga North FID.
Historically, Nigeria faced challenges in attracting substantial oil and gas investments, with approximately $80 billion diverted to other regions over the past decade. Concerns over regulatory stability and an uncompetitive fiscal framework were primary deterrents. Addressing these issues, the current administration has enhanced security in oil-producing areas and implemented a data-driven security framework. These measures have led to a 500,000 barrels per day (bpd) increase in oil production since the administration assumed office.
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Looking ahead, the government aims to restore oil production to 2.06 million bpd in the near term, with an ambitious target of reaching 4 million bpd by 2030. This strategy focuses on attracting more FIDs, expanding deepwater operations, and ensuring Nigeria’s competitiveness among 14 rival oil and gas investment destinations.
A significant aspect of this growth strategy involves the realignment of asset ownership. In 2024, five major asset acquisitions were completed, integrating operators with local expertise and allowing international oil companies (IOCs) to concentrate on deepwater operations, leveraging their capital and technical prowess. This strategic shift is expected to drive sustained production growth, ensuring a steady and long-term increase in output.
