Nigeria’s Energy Sector Attracts $6.7 Billion In Investments In 2024, FG Reports

The Federal Government reports that Nigeria’s energy sector attracts a total of $6.7 billion in investments in 2024, according to the “Presidency Energy Sector Wrap-Up 2024” published by the office of the Special Adviser to the President on Energy.

Of the total investment, $5.5 billion is directed towards the oil and gas sector, $400 million is allocated to the Presidential Metering Initiative (PMI), and $700 million is invested in clean mobility and clean cooking initiatives.

The report highlights a key development in the oil and gas sector, noting that Shell Nigeria Exploration and Production Company (SNEPCO) invests $5 billion in the Bonga North Deep Offshore Project. This marks the first greenfield deep offshore project in over a decade and is expected to increase Nigeria’s oil production capacity by about 110,000 barrels per day.

The report also lists five significant acquisitions completed in 2024 within Nigeria’s oil and gas sector:

• Renaissance Consortium acquires Shell Petroleum Development Company Limited (SPDC) in a $1.3 billion deal.
• Seplat Energy Plc purchases Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation for $1.3 billion.
• Chappal Energies acquires Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA, for $1.2 billion.
• Chappal Energies purchases TotalEnergies EP Nigeria’s 10% stake in the SPDC JV licenses for $860 million.
• Oando Plc acquires Nigerian Agip Oil Company (NAOC) in a deal worth $800 million.

Olu Verheijen, the Special Adviser to the President on Energy, affirms the government’s commitment to collaborating with both public and private sector stakeholders to enhance energy availability across Nigeria. She highlights the launch of initiatives such as the Presidential Metering Initiative (PMI), which aims to improve the availability, affordability, and reliability of on-grid electricity. Verheijen also stresses the importance of continued engagement with sector stakeholders and invites feedback to guide future actions.

The report notes that Nigeria leads Africa in attracting upstream oil and gas investments, securing four of the five major upstream investments made across the continent in 2024. The year is described as one marked by bold reforms that have enhanced Nigeria’s competitiveness in the global oil and gas market.

Looking to the future, the report forecasts that Nigeria is set to attract more than $5 billion in gas investments by 2029, boosting gas exports and supporting the country’s energy transition. Additionally, Nigeria is positioned to secure over $30 billion in deep offshore investments by 2029, further solidifying its role as a key player in the global energy industry.