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Quick Read: Nigeria’s energy sector attracted $6.7 billion in investments in 2024, with $5.5 billion going to oil and gas, $400 million to metering initiatives, and $700 million to clean energy projects. Key acquisitions included deals by Renaissance Consortium, Seplat Energy, and Oando Plc. The Federal Government emphasized its commitment to improving energy access and competitiveness through reforms.
Federal Government has announced that Nigeria’s energy sector received a total investment of $6.7 billion in 2024. This information is detailed in the “Presidency Energy Sector Wrap-Up 2024,” a report compiled and released by the Office of the Special Adviser to the President on Energy.
Breakdown of Investments
The report highlights the distribution of the $6.7 billion investment as follows:
- Oil and Gas Sector: $5.5 billion
- Presidential Metering Initiative (PMI): $400 million
- Clean Mobility and Clean Cooking: $700 million
A significant portion of the oil and gas investment came from the $5 billion committed by Shell Nigeria Exploration and Production Company (SNEPCO) to the Bonga North Deep Offshore Project. This project marks Nigeria’s first greenfield deep offshore development in over a decade and is expected to boost oil production by approximately 110,000 barrels per day.
Key Acquisitions in the Oil and Gas Sector
The report also listed five major acquisitions in Nigeria’s oil and gas sector completed in 2024:
- Renaissance Consortium acquired Shell Petroleum Development Company Limited for $1.3 billion.
- Seplat Energy Plc purchased Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation for $1.3 billion.
- Chappal Energies acquired Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA, for $1.2 billion.
- Chappal Energies also acquired TotalEnergies EP Nigeria’s 10% stake in SPDC JV licenses for $860 million.
- Oando Plc completed the acquisition of Nigerian Agip Oil Company (NAOC) for $800 million.
Government’s Commitment to Energy Development
President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, reaffirmed the administration’s commitment to improving energy access in Nigeria.
“In power, we launched the new Presidential Metering Initiative (PMI), among other interventions. Our goal, in collaboration with stakeholders, is to improve the availability, affordability, and reliability of on-grid power,” Verheijen said.
She added that the government remains focused on engaging and collaborating with public and private sector stakeholders to enhance the country’s energy landscape.
Nigeria Leads Africa in Energy Investments
The report revealed that Nigeria secured the highest upstream oil and gas investments in Africa in 2024, accounting for four of the five major investments on the continent.
“In the oil and gas sector, 2024 was a year of bold reforms that improved Nigeria’s investment competitiveness,” the report noted.
Future Outlook
Looking ahead, Nigeria is positioned to attract over $5 billion in gas investments by 2029, boosting gas exports and supporting the energy transition. The country is also set to tap into over $30 billion in deep offshore investments by 2029, further strengthening its position as a leader in Africa’s energy sector.
