Nigeria Ramps Up $16bln Investment Drive in Oil and Gas Sector

By Joycelyn Ellakeche Adah

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced significant strides in attracting fresh investments into the nation’s oil and gas sector, citing over $16 billion in upstream investment commitments between 2023 and 2025.

This development was highlighted at the recent Nigeria-China Sustainable Bilateral Business, Trade, and Investment Summit held in Lagos.

Persecondnews reports that the summit brought together top government officials, global and local investors, energy executives, and key stakeholders to reaffirm Nigeria’s commitment to energy security, accessibility, and sustainability as cornerstones of national development.

In his address, the Commission’s Chief Executive, Engr. Gbenga Komolafe, attributed the recent investment surge to reforms introduced under President Bola Ahmed Tinubu’s administration.

These reforms, he noted, have transformed operational efficiency, shortened contracting cycles from 36 to six months, and eliminated fiscal and regulatory bottlenecks.

“The enactment and implementation of the Petroleum Industry Act (PIA) have created a transparent, stable, and investor-friendly regulatory environment,” Komolafe said.

“We have issued 19 enabling regulations, streamlined licensing processes, and deployed digital tools to improve oversight and transparency.”

Highlighting Nigeria’s energy potential, Komolafe pointed to the country’s hydrocarbon wealth 37.28 billion barrels of crude oil and 210.54 trillion cubic feet of natural gas, the largest gas reserves in Africa.

With current production at 1.75 million barrels of oil and 7 billion standard cubic feet of gas per day, Nigeria is targeting increases to 3 million barrels and 12 billion cubic feet daily, respectively.

International oil majors including Shell, TotalEnergies, and Seplat, along with several indigenous companies, are expanding their investments, signalling renewed global confidence in Nigeria’s energy landscape.

Komolafe emphasized that the sector’s fiscal incentives such as zero hydrocarbon tax, reduced royalty rates, and simplified regulatory procedures make Nigeria a highly attractive investment destination.

He also outlined Nigeria’s clean energy commitments through initiatives like the Decade of Gas, the Presidential Compressed Natural Gas (CNG) Initiative, and the Nigerian Gas Flare Commercialisation Programme.

These programmes aim to reduce gas flaring, harness gas for power generation, and support carbon capture technologies in alignment with global climate goals.

Quoting President Tinubu, Eng. Komolafe said, “Nigeria must not only be open for business; Nigeria must be irresistible for investment.”

He urged both local and international investors to take advantage of the diverse opportunities in Nigeria’s upstream oil and gas sector and contribute to securing the country’s energy future.