FG Finally Explains Why Investors Are Leaving Nigeria, Speaks on More Oil Sector Investment in 2025

• President Bola Tinubu's Special Adviser on Energy, anticipates that Nigeria will receive more Final Investment Decisions this year
• This will encourage consistent economic growth in the energy sector and increase investor confidence
• Nigeria has struggled to draw in significant new oil and gas investments; instead, foreign investors have moved about $80 billion to other places

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Olu Verheijen, President Bola Tinubu's Special Adviser on Energy, anticipates that Nigeria will receive more Final Investment Decisions this year. This is expected to boost investor confidence and promote steady economic growth in the energy industry.

Speaking on Monday at the Nigeria International Energy Summit 2025, Verheijen emphasized that Nigeria had obtained three of Africa's four FIDs, totalling more than $5.5 billion, the previous year.

She said the statistics showed Nigeria's standing as a top location for deep offshore oil and gas investments.

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she added that key measures, such as three presidential orders issued in February 2024 to remove obstacles to new investments, were the driving force behind the nation's improved investment climate.

These actions aided in luring significant investment commitments, including Shell's approval of the Bonga North FID and the Ubeta FID obtained through a Total JV.

“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 $5.5bn.”

“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.

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Nigeria not attracting investor

Over the past ten years, Nigeria has had difficulty attracting large new oil and gas investments; instead, international investors have diverted roughly $80 billion to other locations.

Verheijen ascribed this to worries about an uncompetitive fiscal structure and regulatory stability.

However, she said President 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.

This led to a 500,000 barrels per day increase in oil production since the administration took office.

In order to attain its goal of bringing oil output back to 2.06 million barrels per day in the near future and four million barrels per day by 2030, the government is still concentrating on increasing deepwater operations, luring additional foreign direct investments, and making sure Nigeria stays competitive among 14 other oil and gas investment destinations.

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Additionally, Verheijen cited five significant asset purchases that were finished in 2024 as being essential to increasing Nigeria's oil output.

According to her, these deals allowed foreign oil firms to concentrate on deepwater operations, where their financial and technical capabilities are essential, while integrating operators with local knowledge.

Nigerian Oil And Gas Firm Signs $200 Million

Legit.ng reported that A Nigerian oil and gas firm, NESGAS Limited, has signed a $200 million deal to expand gas operations in Nigeria, with the construction of a 50,000 metric tonnes storage facility.

The storage facility will be constructed in Onne, Rivers State, and is expected to significantly boost Nigeria’s liquefied petroleum gas storage capacity from the current capacity of 800,000 metric tonnes, closer to the target of 5 million tonnes.

The $200 million contractor financing agreement with Cakasa Nigeria Limited was signed in Abuja, and NESGAS's Managing Director, Tunde Banjo, assured that it would be promptly executed.

Source: Legit.ng