Nigeria Leads Africa As Top Upstream Investment Destination

Nigeria ranks as Africa’s leading destination for upstream oil and gas investment in 2024, research from market intelligence firm Wood Mackenzie shows. The country accounted for three out of four Final Investment Decisions (FIDs) announced by global oil and gas majors, totaling $13.5 billion.

The FIDs announced within the Nigerian market included Shell’s $122 million investment in the Iseni Gas Project, TotalEnergies’ $566 million commitment to the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project. The investments reflect Nigeria’s ongoing efforts to unlock its hydrocarbon potential through investor-friendly policies and strategic global partnerships.

The African Energy Chamber (AEC), as the voice of the African energy sector, congratulates Nigeria for the milestone. The Chamber commends the Nigerian government for its proactive legislations aimed at attracting foreign investments, streamlining project implementation and reducing bottlenecks.

In 2024, Nigeria introduced several initiatives to create a conducive environment for oil and gas investors, including new tax incentives aimed at attracting up to $10 billion in natural gas investments – offering tax relief for gas investors, reducing corporate income tax and extending capital allowance benefits – for deepwater gas projects.

Other policies include the Presidential Directive on Local Content Compliance Requirements, 2024 to address reduction in oil and gas investments caused by high operating costs compared to global markets. The Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 reduces time spent to award contracts for oil and gas projects.

In addition to the directives, Nigeria also launched its 2024 oil and gas licensing round, offering 19 blocks for exploration, demonstrating its commitment to continued collaboration with local, regional and international partners. With this momentum, further FIDs are anticipated, including TotalEnergies’ expected $750 million commitment to the Ima Shallow Gas Project in 2025.

With 45% of the Nigerian population lacking access to electricity and affordable and reliable energy, the Chamber believes the FIDs and policies are a right step in driving the country’s universal energy access and socioeconomic development targets.

“Nigeria continues to set a benchmark for investor-friendly policies, leveraging its hydrocarbon potential and government initiatives to drive sustainable development,” states NJ Ayuk, Executive Chairman of the AEC, adding “The Chamber commends President Tinubu, Special Adviser to the President on Energy Olu Arowolo Verheijen and Nigerian energy stakeholders for fostering an environment that attracts global investments, contributing to energy poverty eradication, sustainable development and global energy market stability.”

The upcoming African Energy Week: Invest in African Energy 2025 conference – taking place from 29 September to 03 October – will hosts key Nigerian policymakers and energy stakeholders showcasing investment opportunities within Nigeria’s burgeoning oil and gas industry.