- The Federal Government says the energy sector attracted $6.7 billion in investment in 2024
- It said the investments were in oil and gas, metering, clean cooking and mobility
- The investments include the five oil divestment deals approved in 2024
The Federal Government says Nigeria’s energy sector attracted $6.7 billion worth of investments in 2024.
This is according to the ‘Presidency Energy Sector Wrap-Up 2024’ compiled and released by the office of the Special Adviser to the President on Energy.
The report stated that out of the $6.7 billion total investment into the energy sector, $5.5 billion was invested in the oil and gas sector, $400 million went into the Federal Government’s investment in the Presidential Metering Initiative (PMI), and $700 million was invested in clean mobility and clean cooking.
It further 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 report added that the project will boost Nigeria’s oil production capacity by approximately 110,000 barrels per day.
‘Government committed to enhancing energy sector’
Olu Verheijen, the Special Adviser on Energy to President Bola Tinubu, stressed the government’s commitment to enhancing Nigeria’s energy sector.
The president’s aide said the government will continue to work with stakeholders in the private and public sectors to ensure energy availability in Nigeria.
Verheijen said, “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.”
Nigeria recorded five major oil acquisitions in 2024
The report noted the five divestment deals recorded in the oil and gas sector in 2024, which it said boosted investments in the energy sector.
It said 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,” the report noted.
These oil acquisitions in 2024 include the take-over of Nigerian Agip Oil Company (NAOC) from Eni by Oando Plc in August 2024, following the acquisition of a 100 per cent shareholding interest in the company for a total consideration of $783 million, which comprises consideration for the asset and reimbursement.
In October 2024, the Federal Government approved the application of a $1.28 billion sale of ExxonMobil Corporation’s onshore assets to Seplat Energy, more than two years after the deal was struck.
Following the complete acquisition of MPNU from ExxonMobil in a $1.28 billion deal, Seplat Energy Plc became Nigeria’s leading energy company.
In November 2024, Chappal Energies acquired Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA, in an estimated $1.2 billion deal.
With the acquisition, Chappal Energies now controls ENEC, which holds a 53.85 per cent stake in the oil mining lease (OML) 128 oil and gas lease. This includes a 20.2 per cent interest in the Agbami oil field operated by Chevron and the operatorship of OML 129.
In December 2024, the Federal Government reportedly approved the sale of $2.4 billion onshore assets of Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy Company Limited.
Shell had announced its agreement to sell its 30 per cent stake in SPDC to Renaissance for over $2.4 billion to streamline its portfolio and direct disciplined investments toward deepwater and integrated gas ventures in Nigeria.
Chappal Energies also acquired TotalEnergies EP Nigeria’s 10 per cent interest in the SPDC JV licences in Nigeria for $860 million.
Federal Government plans major energy overhaul, aims for 20 hours of power by 2027
Meanwhile, TheRadar earlier reported that the Federal Government announced plans to supply Nigerians with a minimum of 20 hours of electricity per day by 2027, contingent upon securing adequate investment in the country’s oil and gas sector, which is currently underperforming.
Olu Verheijen, the Special Adviser to the President on Energy, shared this information at the Energy Week in Cape Town, South Africa, according to a statement issued by Abiodun Oladunjoye, the State House Director of Information and Publicity, on Thursday, November 7.
