Nigeria is witnessing a surge in oil and gas investments following a series of pro-investment reforms that have positioned the country as Africa’s leading destination for upstream energy ventures. With an estimated 37.5 billion barrels of crude oil and 209 trillion cubic feet of natural gas, as well as significant untapped renewable energy resources, the country is making strides toward expanding energy access for its 85 million citizens without electricity.

In 2024, global energy giants committed billions to Nigeria’s oil and gas industry. Shell pledged $122 million to the Iseni Gas Project and finalized its investment decision for Bonga North Tranche 1. French multinational TotalEnergies announced a $550 million Final Investment Decision (FID) for the Ubeta Gas Project, while China’s CNEC partnered with UAE-based Alpha Group on the $20 billion Ogidigben Gas Revolution Industrial Park.

Additionally, CNEC joined forces with Nigeria’s BFI Group for a $1.2 billion gas processing project in Akwa Ibom State, and local firm Dorman Long Engineering secured a $10 million trade facility loan from the African Export-Import Bank, reflecting increased investor confidence.

In September 2024, U.S. energy giant ExxonMobil proposed a $10 billion investment in Nigeria’s deep-water oil operations. The announcement was made by Vice President Kashim Shettima during a high-level meeting with ExxonMobil executives at the 79th United Nations General Assembly in New York.

“This potential investment by ExxonMobil aligns perfectly with President Bola Ahmed Tinubu’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects,” Shettima stated. “We are actively revising the fiscal framework for deep-water operations to attract investments while ensuring fair returns for the Nigerian people. The potential ExxonMobil investment shows we are moving in the right direction.”

ExxonMobil’s Chairman and Managing Director in Nigeria, Shane Harris, reaffirmed the company’s commitment, emphasizing its focus on deep-water operations. “Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris said. “We’re working closely with the President’s office and the Special Adviser to the President to secure favorable fiscal arrangements that will make this investment possible.” The company is also set to invest $1 billion annually in maintenance and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.

Shell  announced its FID on the Bonga North deep-water project in December 2024. The project, expected to deliver 110,000 barrels of oil per day at peak production, involves the drilling of 16 wells and modifications to the existing Bonga Floating Production Storage and Offloading (FPSO) facility.

Meanwhile, TotalEnergies, in an October 2024 meeting with Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reiterated its commitment to investing in the Bonga North Offshore project. Nicolas Terraz, President of Exploration and Production at TotalEnergies, confirmed that the company’s board had approved the investment, citing Nigeria’s improved business climate.

“TotalEnergies is glad to see the positive steps taken by the Nigerian government in creating a conducive environment for business. We remain committed to further deepening our investments in Nigeria, especially with the opportunities that projects like Bonga North Offshore and our joint ventures with SPDC and NNPCL present,” Terraz was quoted as saying in a statement by the Special Adviser, Media and Communication to the Minister, Nneamaka Okafor.

Looking ahead, investment in Nigeria’s oil and gas industry is expected to surge further. TotalEnergies is projected to reach an FID on a $750 million offshore gas project in 2025, while the country aims to attract $30 billion in deep offshore investments by 2029.

Simultaneously, Nigeria’s renewable energy sector is gaining traction. In January 2025, the International Finance Corporation partnered with five renewable energy firms under the Nigeria Distributed Access Through Renewable Energy Scale-Up initiative, aiming to provide electricity to 400,000 Nigerians.

“Nigeria’s vast energy resources offer one of the world’s most lucrative yet untapped opportunities to drive local, regional and global energy market stability. With investor-friendly policies and reforms, the country presents a compelling case for global players. NIES aligns with the AEC’s mission to attract investment into Africa’s energy sector and eradicate energy poverty through strategic cooperation,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC) in a statement on Thursday.

The Nigerian government is confident in its ability to attract $50 billion in oil sector investments. “With $50 billion in investments expected, it is evident that our efforts to attract more investment and promote divestment in the oil sector, aimed at ramping up production, are yielding results. And we are not stopping yet,” said Lokpobiri during a recent meeting with media stakeholders.

Nigeria is the most populous country in Africa. According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country holds 30% of Africa’s total oil reserves and 34% of its gas reserves.

With global energy firms reaffirming their commitment to Nigeria and the government pushing for an investment-friendly environment, the country is set to solidify its position as a key player in the global energy market.