- The Federal Government said it is expecting more investments in the oil sector in 2025
- It said Nigeria lost about $80 billion in oil and gas investments due to concerns over regulatory stability and an uncompetitive fiscal framework
- The government said it is increasing investments in the power sector
The Federal Government says more investment is expected in the oil sector in 2025 due to reinforced investor confidence in the industry.
The Special Adviser on Energy to President Bola Tinubu, Olu Verheijen, stated this at the Nigeria International Energy Summit 2025 on Monday, February 24.
Verheijen noted that Nigeria secured three out of Africa’s four Final Investment Decisions (FIDs) in 2024, valued at over $5.5 billion, which demonstrated Nigeria’s position as a leading destination for deep offshore oil and gas investments.
She also noted that Nigeria secured five asset acquisitions, began petrol production at the Dangote Refinery, as well as revived two domestic refineries to improve fuel availability.
Verheijen attributed Nigeria’s improved investment climate to key reforms, including three presidential directives issued in February 2024 to remove barriers to new investments.
The presidential aide noted that these measures helped attract major investment commitments such as the Ubeta FID secured through a Total JV and Shell’s approval of the Bonga North FID.
“The year 2024 marked a turning point in our energy landscape, with Nigeria securing three out of Africa’s four Final Investment Decisions, valued at over $5.5 billion.
“Our nation solidified its position as a premier destination for deep offshore oil and gas investments, approved its first deepwater FID in over a decade, facilitated five major asset acquisitions, revived two domestic refineries, and commenced petrol production at Africa’s largest refinery.
“Looking ahead, additional FIDs are anticipated in 2025, further reinforcing investor confidence. The five major asset acquisitions completed in 2024 will play a critical role in accelerating production growth.
“These transactions have strategically integrated operators with deep local expertise and operational agility, ensuring more efficient resource extraction and management,” Verheijen said.
Why Nigeria lost $80 billion in oil investments
The presidential aide added that Nigeria lost about $80 billion in oil and gas investments in the past decade to other countries.
She explained that the reason for this economic bypass was due to concerns over regulatory stability and an uncompetitive fiscal framework.
Verheijen however said President Bola Tinubu’s administration had taken steps to change this narrative by enhancing security in oil-producing regions and implementing a data-driven security framework in collaboration with operators and security agencies.
She noted that the measures adopted by the government led to a 500,000 barrels per day (bpd) increase in oil production since the inception of the current administration.
Following the increase in oil production, Verheijen said the government targets a 2.06 million bpd production in 2025 and plans to reach four million bpd by 2030, as well as expanding deepwater operations, and ensuring Nigeria remains competitive among 14 rival oil and gas investment destinations.
“This strategic realignment is expected to drive sustained production growth, ensuring a steady and long-term increase in output,” she said.
Government’s investments in the power sector
Verheijen stressed that beyond oil and gas, Nigeria’s influence in shaping Africa’s energy landscape is on the increase through the expansion of domestic refining capacity, improved electrification efforts, and reforms aimed at enhancing liquidity in the power sector.
One of the initiatives to enhance the power sector, according to Verheijen, is the Presidential Metering Initiative.
“A key initiative is the Presidential Metering Initiative, which consolidates all metering programmes into a unified framework, targeting the deployment of seven million smart meters.
“This initiative is designed to eliminate the inefficiencies of estimated billing, enhance revenue collection by electricity distribution companies, and significantly improve service delivery.
“Simultaneously, we are implementing a gradual transition to cost-reflective tariffs that balance affordability with financial sustainability. This approach ensures the sector remains self-sustaining while safeguarding the most vulnerable through a well-targeted subsidy system,” she said.
She also said other measures adopted by the government include addressing outstanding debts owed to gas suppliers and power generation companies while implementing cost-reflective tariffs with targeted subsidies.
The measures, Verheijen said, were crucial to ensuring a financially stable and investment-friendly power sector that could drive industrialisation and economic growth.
She said, “A more energy-secure Africa translates into a more economically resilient Africa. By leveraging our vast energy resources for industrial development and strategic exports, we are laying the foundation for sustainable job creation, economic diversification, and long-term prosperity.
“Our success in securing major investments, expanding domestic refining capacity, and enhancing electrification is not only a national achievement—it has far-reaching implications for regional energy security, intra-African trade, and industrialisation.”
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.
