Wood Mackenzie: Nigeria Emerges as Africa’s Leading Upstream Investment Destination in 2024.
Nigeria has been recognized as Africa’s top destination for upstream oil and gas investment in 2024, according to research conducted by Wood Mackenzie. The country accounted for three out of four Final Investment Decisions (FIDs) announced by global oil and gas majors, representing a total investment of $13.5 billion.
Key FIDs within Nigeria included Shell’s $122 million Iseni Gas Project, TotalEnergies’ $566 million Ubeta Gas Project, and Shell’s approval of the Bonga North Tranche 1 project. These investments highlight Nigeria’s ongoing efforts to leverage its hydrocarbon resources through policies aimed at fostering investor confidence and international partnerships.
Proactive measures by the Nigerian government in 2024 were pivotal in attracting these investments. These included tax incentives for natural gas projects, with the aim of securing up to $10 billion in gas investments. Measures such as tax relief, reduced corporate income tax, and enhanced capital allowances were introduced to boost deepwater gas initiatives.
Additionally, the Presidential Directive on Local Content Compliance and the Directive on Reducing Petroleum Sector Contracting Costs and Timelines addressed inefficiencies that previously deterred investment. These efforts streamlined contract awards and reduced operational costs, making Nigeria’s oil and gas sector more competitive globally.
The launch of the 2024 oil and gas licensing round, offering 19 exploration blocks, further underscored Nigeria’s commitment to collaboration with local and international stakeholders. Expectations for 2025 remain high, with TotalEnergies projected to announce a $750 million investment in the Ima Shallow Gas Project.
With nearly half of Nigeria’s population lacking access to affordable and reliable electricity, these initiatives and investments are anticipated to play a significant role in advancing the country’s energy access and socioeconomic development goals.
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NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), praised Nigeria for setting a benchmark in fostering investor-friendly policies. He commended President Bola Tinubu, Special Adviser on Energy Olu Arowolo Verheijen, and other stakeholders for creating an environment conducive to global investment. Ayuk emphasized the importance of these developments in addressing energy poverty and ensuring sustainable growth.
Looking ahead, the African Energy Week: Invest in African Energy 2025 conference, scheduled for September 29 to October 3, will provide a platform for Nigerian policymakers and energy stakeholders to showcase the country’s thriving oil and gas sector to a global audience.
