By Abiola Olawale
The Federal Government has revealed that Nigeria’s energy sector attracted a substantial investment of $6.7 billion in 2024.
The federal government maintained that the significant financial contribution is an indication of the growing interest and commitment to enhancing Nigeria’s energy infrastructure and capacity.
The information was detailed in the “Presidency Energy Sector Wrap-Up 2024,” a report released by the office of the Special Adviser to the President on Energy.
A breakdown of the report showed that out of the total investment of $6.7 billion, a substantial $5.5 billion was allocated to the oil and gas sector, reflecting a strong commitment to traditional energy resources.
Additionally, the federal government dedicated $400 million to the Presidential Metering Initiative, aimed at enhancing energy efficiency and accountability. Furthermore, $700 million was earmarked for initiatives focused on clean mobility and clean cooking solutions, promoting sustainable practices and reducing environmental impact in these critical areas.
The report noted that a $ 5 billion investment by Shell Nigeria Exploration and Production Company (SNEPCO) in the Bonga North Deep Offshore Project is the “first green field Deep Offshore project in over a decade.”
According to the Presidential aide, the project will boost Nigeria’s oil production capacity by approximately 110,000 barrels per day.
With regards to major acquisitions in the oil and gas sector, the report listed five major acquisitions recorded in the oil and gas sector, which were completed in 2024, including the following:
Renaissance Consortium’s acquisition of Shell Petroleum Development Company Limited in a $ 1.3 billion deal.
Seplat Energy Plc acquired Mobil Producing Nigeria Unlimited MPNU from ExxonMobil Corporation for $ 1.3 billion.
Chappal Energies completed the acquisition of Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA in a deal worth US$1.2 billion.
Chappal Energies acquired otalEnergies EP Nigeria’s 10% interest in the SPDC JV licenses in Nigeria for $860 million.
Oando Plc completed the acquisition of the Nigerian Agip Oil Company (NAOC) in a deal worth $800 million.
Tinubu’s Special Adviser on Energy, Olu Verheijen said the administration is committed to working with stakeholders in the private and public sectors to enhance energy availability in Nigeria.
“In power, we launched, among other interventions, the new Presidential Metering Initiative (PMI). Our goal, working with all industry stakeholders across public and private sectors, is to improve the availability, affordability, and reliability of on-grid power.
“We will continue engaging, collaborating, and communicating with stakeholders across the energy sector, and welcome your feedback and comments,” she said.
The report maintained that Nigeria received the highest upstream oil and gas investment in Africa, securing four of the five upstream investments made in the continent in 2024.
“In the Oil & Gas sector, 2024 was a year of bold reforms that improved Nigeria’s investment competitiveness.”
