Paragraph 1: Nigeria’s oil and gas sector experienced a significant influx of foreign investment in 2024, attracting approximately $17 billion. This surge in investment can be attributed to the implementation of crucial reforms, spearheaded by the Petroleum Industry Act 2021 and a series of Executive Orders issued by President Bola Tinubu. These reforms have liberalized the regulatory framework governing the sector, introducing attractive incentives related to cost recovery, royalty payments, and profit-sharing mechanisms. This positive development underscores the success of the government’s efforts to create a more investor-friendly environment in the oil and gas industry.
Paragraph 2: Speaking at the 2025 CERAWeek by S&P Global in Houston, Texas, Udy Ntia, Executive Vice President of Upstream at the Nigerian National Petroleum Company Limited (NNPCL), highlighted Nigeria’s strategic position as an attractive investment destination. He emphasized the country’s ongoing efforts to expand its oil and gas industry to meet the growing global energy demand, driven by geopolitical tensions and evolving energy policies, particularly in the United States. Ntia underscored the favorable price environment in the past two to three years, which further bolsters the attractiveness of investment in the Nigerian oil and gas sector. He expressed confidence that these factors will continue to attract substantial investment inflows.
Paragraph 3: Ntia urged global investors to capitalize on the vast opportunities presented by Nigeria’s oil and gas sector. He emphasized the significant reforms and investment-friendly policies implemented by the Tinubu administration, positioning Nigeria as an investor haven. Key areas highlighted for investment included the refining and gas sub-sectors. Nigeria aims to expand its refining capacity to reduce its dependence on imported refined products. Furthermore, the country is focused on leveraging its substantial gas reserves, estimated at 207 trillion cubic feet, to drive industrialization and economic growth.
Paragraph 4: Nigeria’s gas resources are poised to play a crucial role in the nation’s energy future. Ntia detailed ongoing collaborations with international partners such as Shell, ENI, and Total to expand gas infrastructure. The progress of the LNG Train 7 project and investments in domestic pipeline networks are key components of this strategy, aiming to satisfy both local and international energy demands. These initiatives underscore Nigeria’s commitment to developing its gas resources for both domestic consumption and export, further solidifying the country’s position as a key player in the global energy market.
Paragraph 5: The Nigerian government actively encouraged foreign investment, particularly from China and India. Ntia highlighted the country’s significant crude oil reserves, exceeding 37 billion barrels, and the availability of flexible investment models, including joint ventures and production-sharing contracts. He emphasized Nigeria’s stable democracy, improved security situation, and business-friendly regulatory framework as key factors attracting foreign investment. The presence of global industry leaders at CERAWeek, including representatives from China National Petroleum Corporation, ONGC Videsh Ltd (India), and Libya’s National Oil Corporation, further underscored the international interest in the Nigerian oil and gas sector.
Paragraph 6: Addressing concerns about the environmental impact of increased hydrocarbon investments in Africa, the Nigerian government, through Olu Verheijen, Special Adviser to President Tinubu on Energy, reassured stakeholders that these investments would not drastically increase the continent’s carbon footprint. Verheijen emphasized that Africa is not a net contributor to global emissions and reiterated the government’s commitment to creating an enabling environment for hydrocarbon investments to address the pressing issue of energy poverty. This statement reflects the government’s commitment to balancing economic development through oil and gas investments with environmental sustainability.
