Olu Verheijen, the Special Adviser to the President on Energy, has announced that Nigeria’s energy sector attracted investments totaling $6.7 billion in 2024.
This was disclosed in a report titled Presidency Energy Sector Wrap-Up 2024, released by her office on Wednesday. According to the report, $5.5 billion of the total investment was directed toward the oil and gas sector. Additionally, $400 million of federal funds were allocated to the Presidential Metering Initiative, while $700 million was invested in the Clean Mobility and Cooking Programme.
The $5.5 billion investment in oil and gas was attributed to asset acquisitions. The investments include the Renaissance Consortium’s $1.3 billion acquisition of Shell Petroleum Development Company Limited.
The report further stated, “Seplat Energy Plc finalized the $1.3 billion acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation (firm consideration). Chappal Energies completed a $1.2 billion acquisition of Equinor Nigeria Energy Company, a subsidiary of Norway’s Equinor ASA.”
Chappal Energies also acquired TotalEnergies EP Nigeria’s 10 percent stake in the SPDC JV licenses for $860 million, while Oando Plc completed an $800 million acquisition of the Nigerian Agip Oil Company (NAOC).
These acquisitions open up onshore fields to a new wave of ambitious indigenous companies, fostering increased investments and boosting production. This transition enhances local ownership, drives immediate growth in oil and gas output, and positions Nigeria for a more stable and prosperous energy future. The report also highlighted significant investments secured by the Federal Government through tax incentives for onshore and shallow water non-associated gas, as well as deep offshore oil and gas projects.
Furthermore, the report revealed that SNEPCO invested $5 billion in the Bonga North Deep Offshore Project, marking the first greenfield deep offshore project in over a decade.
The Bonga North Deep Offshore Project is projected to have a production capacity of 110,000 barrels per day. In the gas sector, TotalEnergies and the Nigerian National Petroleum Company Limited invested $550 million in the Ubeta non-associated gas project. The report also outlined the Federal Government’s ambitious targets of attracting $30 billion in oil investments and $5 billion in gas investments by 2029. These investments are expected to boost gas availability for export and support Nigeria’s energy transition.
Special Adviser to the President on Energy, Olu Verheijen, stated that Nigeria is now strategically positioned to secure $30 billion in deep offshore investments by 2029. She emphasized that the Federal Government’s initiatives aim to drive economic growth and maximize the country’s energy resources.
“In the power sector, we launched the new Presidential Metering Initiative, among other interventions,” Verheijen noted. “Our goal, in collaboration with industry stakeholders across the public and private sectors, is to enhance the availability, affordability, and reliability of on-grid power.”
