Nigeria’s energy sector secures $6.7bn investment in 2024

 

Nigeria’s energy sector witnessed a remarkable injection of $6.7 billion in 2024, signaling significant progress in the country’s quest for energy development and economic growth. This was revealed in a report titled ‘Presidency Energy Sector Wrap-Up 2024’, released by the Special Adviser to the President on Energy, Olu Verheijen.

The report highlights key investments, with $5.5 billion channeled into the oil and gas sector, primarily through landmark asset acquisitions.

“Seplat Energy Plc completed the acquisition of Mobil Producing Nigeria Unlimited MPNU from ExxonMobil Corporation ($1.3 billion (firm consideration).Chappal Energies completed the acquisition of Equinor Nigeria Energy Company, a subsidiary of Norway’s Equinor ASA ($1.2 billion).

“Chappal Energies completed the acquisition of TotalEnergies EP Nigeria’s 10 percent interest in the SPDC JV licenses in Nigeria ($860m). Oando Plc completed the acquisition of the Nigerian Agip Oil Company ($800 million).

“These acquisitions unlock onshore fields for a new wave of ambitious indigenous companies ready to invest and boost production. This shift strengthens local ownership, drives immediate growth in oil and gas output, and sets Nigeria on a path to a more stable and prosperous energy future,” Verheijen noted.

Beyond acquisitions, the report underscores the Federal Government’s investments to bolster energy infrastructure. The Presidential Metering Initiative received $400 million, while the Clean Mobility and Cooking Programme accounted for $700 million, underscoring efforts to address energy accessibility and transition challenges.

The government also secured major commitments in oil and gas through tax incentives. Among these, Shell Nigeria Exploration and Production Company (SNEPCO) invested $5 billion in the Bonga North Deep Offshore Project, which is projected to produce 110,000 barrels per day. Additionally, TotalEnergies and the Nigerian National Petroleum Company Limited committed $550 million to the Ubeta gas project, aimed at enhancing Nigeria’s gas supply for domestic use and export.

Looking ahead, the report sets ambitious targets, with Nigeria aiming to attract $30 billion in oil investments and $5 billion in gas investments by 2029. These investments are expected to boost production, support the energy transition, and enhance economic growth.

“In 2024, we laid the foundation for a stronger energy sector,” Verheijen said. “Through collaboration with stakeholders, we are improving power availability, affordability, and reliability while positioning Nigeria as a competitive player in the global energy landscape.”

Subscribe to Notifications