Tinubu’s Policies Spur Investment as Nigeria Attracts $5 Billion in Oil & Gas Sector
Nigeria’s oil and gas sector is experiencing renewed investor confidence under President Bola Tinubu’s administration, with policies enabling companies to invest and divest freely. This shift has facilitated the completion of major divestment projects by international oil companies (IOCs), including Oando, Seplat, Equinor, and Renaissance (Shell), signaling Nigeria’s attractiveness as a prime investment destination.
Speaking at the opening ceremony of the Nigeria International Energy Summit (NIES) on Tuesday, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, emphasized that the country has built strong local content capacity to sustain operations post-divestment.
“No IOC is leaving Nigeria entirely. At worst, they are shifting focus to deep offshore projects, which remain beyond the capacity of indigenous producers for now,” the Minister stated.
Speaking further he said Nigeria now secures three out of every four major investment decisions made in Africa’s energy sector.
– A $5 billion investment announcement underscores the success of government policies in driving economic growth.
Sen. Lokpobiri further said, the slowdown in investments from the Global North necessitates alternative funding strategies within Africa.
He said, “Africa must complement external funding by securing its own investments in oil and gas projects.
The Minister stated that the long-awaited African Energy Bank Set is expected to commence operations in Q1 2025.
He said, ” The institution aims to provide financing solutions for oil and gas investments across the continent.
The Minister stated that Nigeria has increased crude oil production from approximately 1 million barrels per day (bpd) in early 2024 to over 1.8 million bpd.
– The gas sector is also experiencing significant expansion.
He added that President Tinubu’s subsidy removal policy has led to market-driven fuel pricing.
He stated that the NNPC remains responsible for PMS supply amid increasing competition in the sector.
Lokpobiri commended President Tinubu’s decisive reforms, stating that despite initial resistance from neighboring countries like Chad and Cameroon, Nigeria is now in a stronger economic position.
He urged African nations to collaborate in bridging the technology and finance gaps needed to enhance energy security.
As Nigeria prepares for further discussions at the NIES summit, the Minister stressed the importance of competitive fiscal and regulatory regimes to attract long-term investment. “Africa must focus on strategic partnerships to develop its vast oil and gas potential before fully transitioning to renewable energy,” he concluded
