The Federal Government has disclosed that Nigeria’s energy sector received a total investment of $6.7 billion in 2024.
This is contained in the “Presidency Energy Sector Wrap-Up 2024” compiled and released by the office of the Special Adviser to the President on Energy.
Of the $6.7 billion total investment, $5.5 billion was invested in the oil and gas sector, $400 million was the federal government’s investment in the Presidential Metering Initiative, and $700 million went to clean mobility and clean cooking.
- The report noted that the $ 5 billion investment by Shell Nigeria Exploration and Production Company (SNEPCO) in the Bonga North Deep Offshore Project is the “first green field Deep Offshore project in over a decade.
- The project will boost Nigeria’s oil production capacity by approximately 110,000 barrels per day.
Major acquisitions in the oil and gas sector
The report listed five major acquisitions recorded in the oil and gas sector completed in 2024. They include:
- Renaissance Consortium’s acquisition of Shell Petroleum Development Company Limited in a $ 1.3 billion deal.
- Seplat Energy Plc acquired Mobil Producing Nigeria Unlimited MPNU from ExxonMobil Corporation for $ 1.3 billion.
- Chappal Energies completed the acquisition of Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA in a deal worth US$1.2 billion.
- Chappal Energies acquired otalEnergies EP Nigeria’s 10% interest in the SPDC JV licenses in Nigeria for $860 million.
- Oando Plc completed the acquisition of the Nigerian Agip Oil Company (NAOC) in a deal worth $800 million.
President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen said the administration is committed to working with stakeholders in the private and public sectors to enhance energy availability in Nigeria.
“In power, we launched, among other interventions, the new Presidential Metering Initiative (PMI). Our goal, working with all industry stakeholders across public and private sectors, is to improve the availability, affordability, and reliability of on-grid power.
“We will continue engaging, collaborating, and communicating with stakeholders across the energy sector, and welcome your feedback and comments,” she said.
The report noted that Nigeria received the highest upstream oil and gas investment in Africa, securing four of the five upstream investments made in the continent in 2024.
“In the Oil & Gas sector, 2024 was a year of bold reforms that improved Nigeria’s investment competitiveness.”
Future outlook for oil and gas sector
- The report stated that Nigeria is positioned to attract over $5 billion in gas investments by 2029, “enhancing gas availability for export and supporting the energy transition.”
- It was also stated that Nigeria is positioned to tap into over $30 billion in Deep Offshore investments by 2029.
