Nigeria’s Oil Sector Secures Impressive $17 Billion Investment in 2024

Nigeria’s Oil Sector Secures Impressive $17 Billion Investment in 2024

In 2024, Nigeria’s oil and gas industry attracted approximately $17 billion in foreign investments. This surge resulted from recent regulatory reforms and proactive investor engagement by the Nigerian National Petroleum Company Limited (NNPCL).

Udy Ntia, NNPCL’s Executive Vice President for Upstream Operations, highlighted these developments at the 2025 CERAWeek conference in Houston, Texas. He noted that Nigeria remains Africa’s top spender in upstream activities, with annual capital expenditures ranging between $10 billion and $12 billion.

The African Energy Chamber’s 2025 outlook reported that Africa’s total upstream capital expenditure reached $47 billion in 2024. Despite increased investments, significant divestments occurred. Shell sold assets worth $2.4 billion to Renaissance Africa Energy, TotalEnergies divested $900 million to Chappal Energies, and Eni transferred $800 million in assets to Oando. Additionally, ExxonMobil and Equinor divested assets valued at $1.3 billion and $1.2 billion, respectively. These transactions indicate a trend of African investors gaining greater control over oil and gas assets.

Ntia encouraged global investors to explore opportunities in Nigeria’s oil and gas sector, emphasizing the country’s regulatory reforms and investment-friendly policies. He stated, “For us in Nigeria, despite global energy security concerns, including those in Europe, we see significant opportunities. We have strategically positioned our assets to leverage the present strong price environment, which remained favourable over the past two to three years. As a result, we anticipate substantial investment inflows into the sector.”

---

---

In a related development, the Nigerian government approved the establishment of a modular refinery within the Abia Industrial and Innovative Park (AIIP) in Owaza, Ukwa West. Governor Alex Otti, during the inauguration of the 11.1-kilometer Obehie-Umudobia-Owaza road project, announced this initiative. He emphasized that the project aims to revive economic assets, open new opportunities, and restore past aspirations.

The refinery, to be constructed by H.I.S. Refinery and Petrochemical Company Limited, is expected to boost development in Ukwa. Governor Otti assured collaboration with the Abia State Oil Producing Areas Development Commission (ASOPADEC) and the Niger Delta Development Commission (NDDC) to address years of neglect in the region.

The modular refinery project is anticipated to commence operations in 2025, generating approximately 2,000 direct job opportunities and numerous indirect employment prospects. This development aligns with the state’s efforts to industrialize and harness its oil and gas resources effectively.

These developments underscore Nigeria’s commitment to enhancing its oil and gas sector through strategic reforms and infrastructure projects, aiming to attract investments and stimulate economic growth.