ABUJA, Nigeria (BG) – The African Energy Chamber (AEC) has commended the Nigerian government for its policy reforms, which helped position the West African country as Africa’s top upstream oil and gas investment destination in 2024.
In a statement on Monday, the AEC said research from market intelligence firm Wood Mackenzie shows Nigeria accounted for three out of four Final Investment Decisions (FIDs) announced by global oil and gas majors, totaling $13.5 billion.
The FIDs in Nigeria included Shell’s $122 million investment in the Iseni Gas Project, TotalEnergies’ $566 million commitment to the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project.
The investments reflect Nigeria’s ongoing efforts to unlock its hydrocarbon potential through investor-friendly policies and strategic global partnerships.
As the voice of the African energy sector, the AEC congratulated Nigeria on the milestone.
The Chamber also praised the Nigerian government’s proactive legislation to attract foreign investments, streamline project implementation and reduce bottlenecks.
Tax Relief for Gas Investors
Nigeria continues to set a benchmark for investor-friendly policies, leveraging its hydrocarbon potential and government initiatives to drive sustainable development.
In 2024, Nigeria introduced several initiatives to create a conducive environment for oil and gas investors, including new tax incentives to attract up to $10 billion in natural gas investments.
These include tax relief for gas investors, reduced corporate income tax and extended capital allowance benefits for deepwater gas projects.
Other policies include the Presidential Directive on Local Content Compliance Requirements, 2024, aimed at addressing reductions in oil and gas investments caused by high operating costs compared to global markets, the statement said.
The Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024, seeks to cut the time required to award contracts for oil and gas projects.
Nigeria also launched its 2024 oil and gas licensing round, offering 19 blocks for exploration, underscoring its commitment to collaboration with local, regional and international partners.
According to the statement, further FIDs are anticipated with this momentum, including TotalEnergies’ expected $750 million commitment to the Ima Shallow Gas Project in 2025.
With 45% of the Nigerian population lacking access to electricity and affordable, reliable energy, the Chamber believes the FIDs and policies are a step in the right direction to drive the country’s universal energy access and socioeconomic development targets.
“Nigeria continues to set a benchmark for investor-friendly policies, leveraging its hydrocarbon potential and government initiatives to drive sustainable development,” states NJ Ayuk, Executive Chairman of the AEC.
“The Chamber commends President Tinubu, Special Adviser to the President on Energy Olu Arowolo Verheijen and Nigerian energy stakeholders for fostering an environment that attracts global investments, contributing to energy poverty eradication, sustainable development and global energy market stability,” he added.
The upcoming African Energy Week: Invest in African Energy 2025 conference — taking place from Sept. 29 to Oct. 3 — will host key Nigerian policymakers and energy stakeholders showcasing investment opportunities within Nigeria’s burgeoning oil and gas industry.
