Nigeria has emerged as Africa’s leading destination for oil and gas investment, following an extraordinary energy sector transformation driven by President Bola Ahmed Tinubu’s administration and the strategic leadership of his Special Adviser on Energy, Olu Verheijen.
After nearly a decade of declining investor confidence, policy uncertainty, and shrinking capital inflows, Nigeria has recorded one of the continent’s most significant energy investment reversals.
Between 2014 and 2023, Nigeria accounted for only four percent of Africa’s upstream Final Investment Decisions, despite possessing the continent’s largest proven oil reserves and vast natural gas resources.
Today, that narrative has changed dramatically.
Between 2024 and 2025, Nigeria’s share of Africa’s upstream Final Investment Decisions surged from four percent to 40 percent, restoring the country’s position as the premier destination for energy capital on the continent.
Industry experts say this resurgence is not accidental, but the direct outcome of coordinated reforms executed by Tinubu’s administration, with Verheijen playing a central role in designing and driving policy implementation.
“The unprecedented scale and speed of energy reforms and outcomes have made President Bola Ahmed Tinubu the most consequential President for the sector,” Verheijen stated during a review of the administration’s three-year energy performance.
Her role in shaping Nigeria’s new investment landscape has drawn increasing recognition from both domestic and international stakeholders.
Verheijen’s Reform Blueprint Reshapes Nigeria’s Energy Landscape
From the outset, Verheijen spearheaded a comprehensive reform strategy focused on restoring investor confidence, improving fiscal competitiveness, and eliminating longstanding regulatory bottlenecks.
Under her guidance, the administration introduced a suite of executive orders and policy directives that fundamentally reshaped Nigeria’s petroleum sector.
These included the 2023 policy directive clarifying oversight roles between the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, ending years of institutional overlap and investor uncertainty.
The 2024 Presidential Directive 40 Tax Incentives Order introduced globally competitive fiscal terms for petroleum operators, while VAT reforms eliminated multiple taxation burdens that had weakened project economics.
In 2025, the Upstream Cost Efficiency Order further strengthened the sector by incentivising lower production costs and improving returns on marginal and deepwater projects.
Executive Order 9 also provided stronger revenue safeguards while reinforcing regulatory clarity, sending a clear signal to international investors that Nigeria was once again open for business under transparent and enforceable rules.
Verheijen described the reform agenda as a disciplined strategy focused on execution.
“From the outset, the President established a clear direction, to restore credibility, unlock investment, and reposition energy as a driver of growth, jobs, and prosperity,” she said.
Multi-Billion Dollar Investments Return
The policy reset has translated directly into substantial capital commitments.
In 2024 alone, Nigeria secured Final Investment Decisions on major projects, including the $100 million Iseni Gas Project, the $550 million Ubeta Gas Project, and the $5 billion Bonga North Deepwater Project.
Momentum accelerated in 2025 with the $2 billion HI Non-Associated Gas Project, while Nigeria’s medium-term upstream investment pipeline now exceeds $50 billion.
Upcoming projects include Bonga South West, Zaba Zaba, Owowo, Nwadoro, Bosi, Preowie, Nsiko, Usan, and Erha.
These projects represent one of the largest energy capital pipelines currently under development anywhere in Africa.
“At a time when global upstream investment was tightening, Nigeria reversed years of decline,” Verheijen noted. “The result has been a renewed pipeline of over $10 billion in Final Investment Decisions.”
Production Growth Reinforces Reform Success
Nigeria’s investment recovery has also translated into stronger production performance.
Between 2023 and 2026, the country added approximately 400,000 barrels per day to national output, raising production to 1.6 million barrels per day in 2025.
This marks Nigeria’s highest onshore oil production levels in over 20 years, supported by stronger security interventions, improved operational efficiency, and successful indigenous asset management.
With Tinubu’s administration targeting more than three million barrels per day, analysts believe Nigeria is now positioned for sustained long-term growth.
Nigeria Reclaims Continental Leadership
For international investors, Nigeria’s return signals the successful revival of a once-struggling energy giant.
The combination of Tinubu’s political backing and Verheijen’s policy execution has repositioned Nigeria as Africa’s most attractive petroleum investment environment.
After years of missed opportunities, delayed projects, and capital flight, Nigeria is once again commanding global investor attention.
“The work continues, but the foundation has been laid for sustained growth,” Verheijen said. “Capital markets have delivered their verdict, Nigeria is once again the place to invest in African energy.”
Author
Leave a comment