As the G20 Africa Energy Investment Forum approaches, Africa’s leading oil and gas producers, including Nigeria, are preparing to bring their strategic energy agenda to a global audience. Nigeria’s Special Assistant to President Bola Tinubu on Energy, Olu Verheijen, is expected to participate in the forum on November 21 in Johannesburg to share insights on how the country’s recent reforms are not only attracting foreign investment into the energy value chain, but also positioning Nigeria as a benchmark for African countries pursuing a hydrocarbon-led energy transition.
As one of the continent’s largest oil and gas producers, Nigeria is recalibrating its policies with the aim of accelerating exploration, reversing production declines and extracting greater value from both onshore and offshore hydrocarbon basins. Recent reforms include this year’s introduction of the Upstream Petroleum Business (Cost Efficiency Incentives) Order, which provides performance-based tax credits to oil and gas companies that meet cost-cutting targets. The policy aims to reduce operating costs and increase the attractiveness of the sector, while attracting investment in upstream projects. It also followed the implementation of the Petroleum Industry Act (PIA) in 2021, which overhauled sector governance, separated the Nigerian National Oil Company into commercially oriented entities, and established a modernized regulatory framework to attract capital and foster sustainable growth.
The effects of these reforms are already clear. Since the enactment of the PIA, Nigeria has facilitated more than $17 billion in foreign direct investment in the oil and gas industry, reflecting a new surge of global confidence in the market. The country is also seeing a surge in spending from active operators, including ExxonMobil’s $1.5 billion investment to revitalize the Usan deepwater oil field. A $5 billion FID has been achieved for Shell’s Bonga North deepwater development. TotalEnergies has invested $550 million in the development of gas processing facilities. These investments follow a series of mergers and acquisitions in 2024, with acquisitions by Seplat, Chappal Energies and Oando attracting $6.7 billion in investments over the course of the year. These developments are consistent with Nigeria’s broader goal of increasing production by more than 2 million barrels per day.
Nigeria’s energy strategy goes beyond the oil industry and represents a diverse and multifaceted development approach that considers all forms of energy. As part of its National Energy Transition Plan, which aims to promote low-carbon and sustainable energy projects, the country has set a target to increase gas production to 12 billion cubic feet per day by 2030 and is seeking $60 billion over the next five to seven years to strengthen its gas value chain. With over 200 trillion cubic feet of proven gas reserves, Nigeria’s gas sector is a key priority in the country’s development agenda.
In the area of renewable energy, the country has developed the 30-30-30 plan, which aims to have 30 gigawatts of grid-connected power capacity by 2030, with 30% of this coming from renewable sources. The plan comes as the country aims to become net zero by 2060 and is expected to contribute to the goal of achieving universal access to electricity. Various projects have been launched to achieve this goal. Daando Clean Energy is developing a 1.2 GW solar power plant in Jigawa. The World Bank is supporting a $750 million renewable energy decentralized access scale-up project that will power more than 17.5 million Nigerians. Meanwhile, the Nigeria Rural Electrification Authority has signed contracts with 10 companies for 948MW of power generation. These developments will not only strengthen the country’s electricity capacity, but will also create thousands of jobs and support local business development.
“Nigeria’s energy reform sets a strong precedent for what African-led policies can achieve. By promoting transparency, encouraging investment, and prioritizing both hydrocarbons and renewable energy, Nigeria is showing that energy security and transition are complementary drivers of growth, rather than competing goals,” said NJ Ayuku, Executive Chairman of the African Energy Chamber.
Nigeria’s multidimensional energy strategy is closely aligned with an upcoming forum aimed at promoting an Africa-centric approach to energy transition. Recognizing the critical importance of powering and industrializing the continent’s economies, the G20 Africa Energy Investment Forum will bridge global capital and African projects, addressing important topics such as the role of natural gas, the value of integrated energy systems, and how African oil producers can drive the continent’s energy transition.
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