Nigeria’s Energy Sector Secures $6.7bn Investment in 2024
Nigeria’s energy sector saw a significant boost in 2024, with investments totaling $6.7 billion, according to Olu Verheijen, Special Adviser to the President on Energy.
Verheijen revealed this in a report titled ‘Presidency Energy Sector Wrap-Up 2024’ released by her office on Wednesday.
According to the report, $5.5bn of the total investment went into the oil and gas sector. $400m of the Federal Government’s funds went into the presidential metering initiative, while its Clean Mobility and Cooking programme gulped $700m.
Assets acquisition accounted for the $5.5bn investment.
This includes Renaissance Consortium’s acquisition of Shell Petroleum Development Company Limited at $1.3bn.
The report read in part, “Seplat Energy Plc completed the acquisition of Mobil Producing Nigeria Unlimited MPNU from ExxonMobil Corporation ($1.3bn (firm consideration).Chappal Energies completed the acquisition of Equinor Nigeria Energy Company, a subsidiary of Norway’s Equinor ASA ($1.2bn).
“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 ($800m).
“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.”
Additionally, the report emphasised key investments the FG secured in the oil and gas sector through tax incentives for onshore and shallow water Non-Associated Gas and deep offshore oil and gas.
Verheijen’s report revealed that SNEPCO invested $5bn in the Bonga North Deep Offshore Project, the first greenfield deep offshore project in over a decade.
Its production capacity is estimated at 110,000 barrels per day.
In the gas industry, Total Energies and Nigerian National Petroleum Company Limited invested $550m in the Ubeta non-associated gas project.
The report further revealed that the FG is targeting $30bn in the oil sector and $5bn in the gas industry by 2029. It affirmed that Nigeria is now positioned to attract $5bn in gas investments by 2029, enhancing gas availability for export and supporting the energy transition.
Verheijen said Nigeria is positioned to tap into $30bn in deep offshore investments by 2029.
The presidential aide added that the FG’s efforts aim to achieve economic growth and maximise Nigeria’s energy resources.
She revealed, “In power, we launched, among other interventions, the new Presidential Metering Initiative.
“Our goal, working with all industry stakeholders across public and private sectors, is to improve the availability, affordability and reliability of on-grid power.”
