Nigeria has emerged as the leading destination for energy investments in Africa, following sweeping reforms introduced by President Bola Ahmed Tinubu, according to a new government report.
The report, which reviewed developments in the country’s energy sector between 2023 and 2026, revealed a major turnaround, with increased capital inflows reversing years of decline linked to policy uncertainty and underinvestment.
It showed that Nigeria’s share of upstream Final Investment Decisions (FIDs) across Africa rose significantly from just four per cent to about 40 per cent between 2024 and 2025, placing the country ahead of other major oil-producing nations on the continent.
The document, attributed to the office of Olu Verheijen and endorsed by the Presidency, credited the surge to market-driven reforms aimed at restoring investor confidence and improving regulatory clarity.
According to the report, over $10 billion in new FIDs have been secured, particularly in deep offshore and gas projects, boosting Nigeria’s attractiveness to international investors.
Key reforms highlighted include executive directives clarifying the roles of regulatory bodies, tax incentives for deep offshore oil production, and policies designed to improve cost efficiency while safeguarding government revenue.
The report also noted that these measures have reduced project approval timelines and strengthened the overall investment climate.
A major shift in the sector has been the divestment of about $4 billion worth of assets by international oil companies such as Shell, ExxonMobil, Agip, and Equinor to indigenous firms including Seplat Energy, Oando, Renaissance Africa Energy, and Chappal Energies.
This transition, the report said, has boosted local participation and improved production efficiency, especially in onshore operations.
Nigeria’s oil production rose from about 1.2 million barrels per day in 2023 to approximately 1.6 million barrels per day in 2025, marking its highest onshore output in two decades, with projections targeting three million barrels per day in the long term.
Several major projects have driven the sector’s recovery, including the $5 billion Bonga North deepwater project, the $550 million Ubeta gas development, and the $100 million Iseni gas project. The report added that future investments worth over $50 billion are in the pipeline.
In the gas sector, utilisation increased by about 40 per cent, rising from 2.33 billion to 3.25 billion standard cubic feet per day between 2023 and 2026. The report described gas as central to Nigeria’s industrialisation strategy and a key transition fuel.
It also highlighted improvements in domestic supply and a 39 per cent rise in export volumes, positioning Nigeria as an emerging force in global gas markets.
In the downstream sector, local refining capacity recorded significant growth. Premium Motor Spirit (PMS) production increased to 48.2 million litres per day, while Automotive Gas Oil (AGO) reached 17.16 million litres per day by 2026. This, according to the report, has helped eliminate fuel queues and improved energy security nationwide.
The report further noted progress in the power sector, where government interventions, including a debt resolution programme, are helping to restore financial stability and attract investment.
Overall, Nigeria’s improved performance has strengthened its competitiveness within Africa, surpassing countries like Angola, Algeria, and Mozambique in attracting energy investments.
The report concluded that while significant gains have been recorded, sustaining the momentum will depend on policy consistency, improved security, and the capacity of local operators to effectively manage newly acquired assets and attract further investments.
